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FIRE SALE ON ISD. CNN. NETFLIX.

December 14, 2017

Update:  Dec 15 We have a buy order on ISD at $14.69.

We have been watching Prudential Short-Duration High Yield Fund (ISD) for several months.  Or we should say watching the price collapse on this thing.  BUT…..the discount on this Closed End Fund to NAV is now 10%.  This is exactly when you want to buy positions:  when they are on sale.

The fund’s duration is a short 1.6 years which is what we want in this interest rate environment.  And it pays 7.4%.  ISD could drop further so do not be scared out.  We are placing a buy order at $14.70 but you can buy anyplace in this range.  Here is a description from http://www.quantumonline.com.

FUND DESCRIPTION: Prudential Short Duration High Yield Fund, Inc. is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Prudential Short Duration High Yield Fund, Inc. seeks to provide a high level of current income. FUND STRATEGY: The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of high yield fixed income instruments that are rated below investment grade or, if unrated, are considered by the Fund’s investment sub-adviser to be of comparable quality. Under normal market conditions and after the initial investment period following this offering, at least 80% of the Fund’s investable assets (as defined in the prospectus) will be invested in a diversified portfolio of high yield fixed income instruments that are rated below investment grade with varying maturities and other investments (including derivatives) with similar economic characteristics. High yield fixed income instruments that are rated below investment grade (commonly referred to as junk bonds) are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Although the Fund may invest in instruments of any duration or maturity, under normal market conditions the Fund will seek to maintain a weighted average portfolio duration of three years or less and a weighted average maturity of five years or less.

Here is an article we found on SeekingAlpha:

https://seekingalpha.com/article/4117777-let-cef-pay-7_3-percent-cash

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CNN collapses…..haha

The ratings results are in for the full year of 2017 and show that CNN not only came in last place, but that the left-wing network’s primetime viewership eroded by double digits — even as second place MSNBC soared, and ratings champ Fox News held tight.

Fox had an extraordinary year, its second in a row where its total viewers beat not just its left-wing competition in the form of MSNBC and CNN, but all of basic cable. Fox News was not only the number one basic cable channel; its average primetime viewership of 2.4 million was not far behind the Fox broadcast network’s average of 3.5 million.

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We are always the ‘last’ to buy any new technology.

Microwave ovens (yeah we are old), color televisions (yeah old), cell phone (old), a home computer (a decade ago), iPhones (few years ago) and now Netflix.  The cable companies keep raising the rates and continuous fighting in trying to get lower prices is getting so frustrating.

So we keep hearing about the streaming services ie NetFlix.  And we finally give it a try:  again late to the party.  At least they give you a free month which is really nice.  Why not try it out for a month to see if it’s worth a lousy $10 a month.

Well…if you are one of the last to subscribe to NetFlix, like us……get on board.  So far, the only series being watched is House of Cards with Kevin Spacey:  yeah THAT disgraced actor who has been fired from the final season of Cards.  House is probably the best series that we have ever seen on the TV screen.  There is only so much time in the day so other programs have not been reviewed.  But we look forward to the huge assortment of shows that are available.

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REVIEW OF GBAB 6.7%

December 12, 2017

We have numerous positions going ex-dividend in December but NONE except one are “buys”.  We recently bought GBAB.  It jumped up to $22.89 and has been dropping back to $22.63 today.  GBAB is going ex-dividend December 14 and we would watch for a pull-back to around $22.50  This is a buy anyplace under $22.60.  Here is the original post:

https://luvthosedividends.com/2017/11/20/buy-gbab-again-for-ira/

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Are we getting closer to a correction???  Big institutional investors may plan on taking profits in January, assuming the tax bill is signed by Trump.  We are NOT buy and holders and will sell holdings if we see significant declines in early 2018.  Here is the bottom line from the full discussion (Below):  

With sentiment currently at very high levels, combined with low volatility and excess margin debt, all the ingredients necessary for a sharp market reversion are currently present.

Go here for the full discussion:

https://realinvestmentadvice.com/the-exit-problem/

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The financial press will tell you the economy is great and wonderful.  But-read this:

In fact, what has been the weakest expansion in history by far may now be finally running out of gas.

During the last several weeks the pace of US treasury payroll tax collections has actually dropped sharply—and it is ultimately Uncle Sam’s collection box which gives the most accurate, concurrent reading on the state of the US economy. Some 20 million employers do not tend to send in withholding receipts for the kind of phantom seasonally maladjusted, imputed and trend-modeled jobs which populate the BLS reports.

Yet we we are not close to having recovered the 4.3 million goods producing jobs lost in the Great Recession; 40% of them are still AWOL—meaning they are not likely to be recovered before the next recession hits.

Stated differently, the US economy has been shedding high paying goods producing jobs ever since they peaked at 25 million way back in 1980. Indeed,  we are still not even close to the  24.6 million figure which was posted  at the turn of the century.

Go here for the full discussion:

http://www.zerohedge.com/news/2017-12-09/david-stockman-lashes-out-mainstream-medias-peak-fantasy-time

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EHT. FAKE NEWS.

December 8, 2017

FAKE NEWS EVERYWHERE:  We do not listen to CNBC and the financial networks.  But yesterday at the gym we overheard a rube on CNBC forecasting a recession in 2019.  LOL  Now how in the hell can anyone talk about what is going to happen in the financial markets YEARS in the future.  Delusional.  More fake news.

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Eaton Vance High Income 2021 Target Term Trust is going ex-dividend paying approx. 5 cents.  It IS currently in the Core Portfolio.

We like this position as all the bonds mature by 2021 and the fund will cease operations:  hence the name “target term”.  This is NOT your typical bond fund which never closes.  In other words, EHT acts like the Individual Corporate Bonds that we hold:  they mature at a given date and your money is returned.

Another key benefit is the diversification:  EHT holds over 100 positions.

The yield is 5.9% and the price on Thursday was $10.14.  Try to get this at $10.08 or less.

We suggest you BUY EHT as a new holding, OR add to your current position. 

 

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NEWTL 6.7% BUY: but we are cash poor!!!

December 6, 2017

We are suggesting you look at NEWTL which is a debt security from Newtek:  pasted below is a brief description copied from the article and the link is below.  We have been watching Newtek for ages and the time has come to buy.  The bond NEWTL is a BUY.

We are NOT buying this in the Core Portfolio simple because we do NOT have the CASH LOL !!!!!!!  As we have been saying the Core Portfolio is extended with too many positions.  We ARE going to list NEWTL in the portfolio page as a “place holder” and we WILL buy in the near future if the funds become available.

Newtek Business Services Corp. (NASDAQ:NEWT) is an internally managed Business Development Company with a unique and differentiated business model. What is most notable about NEWT is that it has outperformed ALL of the other internally managed BDC companies over the past 12 months.

https://seekingalpha.com/article/4129403-9_6-percent-yield-best-available-bdc-high-insider-ownership-room-run?uprof=46&isDirectRoadblock=false

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“MUST READ” article-link below:

Since 2014, the stock market has risen (capital appreciation only) by 35% while reported earnings growth has risen by a whopping 2%. A 2% growth in earnings over the last 3-years hardly justifies a 33% premium over earnings.

The current market advance both looks, and feels, like the last leg of a market “melt up” as we previously witnessed at the end of 1999. How long it can last is anyone’s guess. However, importantly, it should be remembered that all good things do come to an end. Sometimes, those endings can be very disastrous to long-term investing objectives. This is why focusing on “risk controls” in the short-term, and avoiding subsequent major draw-downs, the long-term returns tend to take care of themselves.

https://realinvestmentadvice.com/technically-speaking-this-is-nuts/

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LOOKING AT BXMT FOR BUY

December 4, 2017

REVIEW THE CORE PORTFOLIO FOR CURRENT HOLDINGS.

We own BXMT in the Core Portfolio………there is yet another positive article in SeekingAlpha.com on the Company and the link is below.    

BXMT has announced a public offering of 10,800,000 shares and so the price has come down.  NOW is the time to BUY or add to your position.  Yield is just under 8%.

A little snippet from the article:

BXMT’s short-term floating rate assets benefit from rising short-term interest rates, as their current yields increase with these rates. REIT investors tend to fear rising rates, particularly investors in residential mortgage REITs, where many of the assets are fixed rate, but the liabilities float – but BXMT is different. Around 92% of loans are floating rate (earnings would benefit from increased short-term rates).

https://seekingalpha.com/article/4129294-little-brother-blackstone-hitting-cylinders

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The Core Portfolio position American Axle Corporate bond has been called.  We have been trying to increase our cash holdings so we don’t mind this call.

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We are looking forward to yet another book about Trump.  When will our fascination with the election end?

 

 

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REVIEWING LADR: BUY MORE OF THIS CORE PORTFOLIO POSITION

December 1, 2017

Here is a positive article (link below) on LADR which is a position in the Core Portfolio. 

LADR pays over 9% and is now priced BELOW where we purchased.  Current owners can buy more.  Or if you do NOT own, you have two options:  buy now and get the dividend on Dec 8 or wait until after the ex-dividend date and POSSIBLY get a lower entry price.

This is a BUY.  Here is some copy from the article linked below:

One of the main fears of REIT investors is the potential impact that interest rate increases could have on the value of their investments. We believe many of these fears to be misplaced as history shows that most REITs perform well during periods of rising interest rates, especially when rising interest rates are the result of economic expansion. This is especially true in the case of LADR which is uniquely positioned to benefit as interest rate increases.

The loans that LADR invests in are typically 1 to 3 years and are floating-rate loans which generate more income with rising interest rates. Moreover, Ladder pre-dominantly finances these investments with fixed rate debt, and therefore, its spread tends to just get larger in an increasing interest rate environment.

https://seekingalpha.com/article/4126983-quality-reit-yields-9_3-percent-high-insider-ownership-dividend-covered-1_3x?uprof=46&isDirectRoadblock=false

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LOOKING AT TCCA——AGAIN

November 30, 2017

Back on November 2 we suggested you look at TCCA Triangle Capital.

Well, TCCA is back in the news again.  They went ex-dividend today, paying us a nice dividend.  Which means this position is now in the BUY category.

The close today is $25.07.  You can add to current positions or buy for the first time:  the price may go lower on Friday.  Try to get under $25.00.  (Do NOT buy their stock…..only this bond.)

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