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LOOK AT CGBD

June 13, 2019. Yesterday we talked about NYMTO, and we did buy.

Today we saw an article about CGBD which is a holding in the Core Portfolio. We bought this two years ago, and it is paying just under ten percent. You can buy or ADD to the current holding……remember: but up to no more than 4% of your portfolio.

As mentioned in “Yield-Starved Investors Still Accumulating BDCs Paying More Than 10% Annually,” business development companies (“BDCs”) have been outperforming the S&P 500 in 2019 but are still paying above-average yields of more than 10%, including TCG BDC (CGBD) and Monroe Capital (MRCC) for the reasons discussed in recent articles.

I believe that CGBD would be an excellent replacement for investors looking to avoid the next meaningful price decline in PSEC. Please read “Time To Buy 11.3% Yielding CGBD With Upcoming Special Dividend Announcement And Share Repurchases” for a detailed discussion.

READ FULL ARTICLE

NOW IN OUR 7TH YEAR

NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Keep scrolling down for more. And don’t forget to hit the like button. Go Here For “About and Links”

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LIMIT ORDER ON NEW BUY

June 12, 2019. We are up to our knees in Presidential campaign bullshit already. Now sleepy Biden, who looks like death warmed over, is promising he will cure cancer!!!!. In addition, he keeps flip-flopping on his previous positions desperately trying to get into the “right-side” of current Democratic thinking.

The bat shit crazy liberal Presidential candidates are promising everything under the sun in hopes of getting elected. The sad aspect is that a huge number of voters will believe this crap.….and all of this is a year and a half BEFORE election day.

Bottom line: We need to limit the time span of elections. The Presidential candidates can start campaigning SIX MONTHS before the election. After the election, leave US ALONE FOR THE NEXT THREE AND HALF YEARS.

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We are off to a West Coast financial conference on Friday. The subject is ‘income’ and hopefully we can come out with several good new investments for the Core Portfolio. Normally we would not spend a substantial amount of money to attend this sort of schmooze-fest, but we “know” one of the featured speakers thru email/phone.

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NYMTO is a preferred stock from New York Mortgage Trust. This is a “play’ on interest rates: declining rates are good for NYMTO. The current yield is a nice 7.9%. We suggest placing a Limit Order around $24.90 and just WAIT to see if it fills.we would NOT pay more.

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related and residential housing-related assets in the United States. Its investment portfolio includes structured multi-family property investments, such as multi-family commercial mortgage-backed securities and preferred equity in, and mezzanine loans to owners of multi-family properties; residential mortgage loans, including distressed residential mortgage loans, non- qualified mortgage loans, second mortgages, and other residential mortgage loans; non-agency residential mortgage-backed securities (RMBS); agency RMBS; and other mortgage-related and residential housing-related assets. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York

https://finance.yahoo.com/news/hedge-funds-never-bullish-york-013732499.html

https://www.zacks.com/stock/news/409731/new-york-mortgage-trust-nymt-tops-q1-earnings-and-revenue-estimates.

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DYNAGAS. SOCIALISM.

June 10, 2019. We hold a DynaGas preferred in the Core Portfolio. DLNG-B. This thing is a disaster, down 27%. but it is paying 13%. We came across an article talking about this mess and the author is suggesting you continue to hold. We are lucky in the sense that we have a very small position so the ‘paper’ losses are not too bad so far. Article linked below.

A reminder again: keep each position small. NEVER go above 4% on a position, even if you think it will go to the moon. (Look at a chart of General Electric, DOWN 66%) We have made this mistake (many times-we can’t seem to learn) and it seems we always get burned.

And another point while we are on this topic: never buy any shipping companies like DynaGas. They always seem to get into trouble. So this is an example of another mistake we made recently with DynaGas lol.

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The Rise Of Socialism (Dependency To Bondage)

How did a country which was once the shining beacon of “capitalism” become a country on the brink of “socialism?”

Changes like these don’t happen in a vacuum. It is the result of years of a burgeoning divide between the wealthy and everyone else. It is also a function of a 40-year process of capitalism morphing an entire population into “debt slaves” to sustain economic prosperity. 

We strongly suggest you read the full article.

https://www.zerohedge.com/news/2019-06-10/socialism-rises-due-great-american-economic-growth-myth

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SELL NRZ

June 7, 2019. We are selling NRZ, a holding in the Core Portfolio.

They are on the wrong side of interest rates, and it is best to take a very small loss right now before it gets worse. SELL.

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The rich are getting richer. It is a refrain that has certainly been uttered before, and likely will again, as Deutsche Bank Securities’ chief economist points out that the gap between the haves and have-nots in the U.S. is, indeed, widening.

Deutsche Bank’s Torsten Sløk says that the distribution of household wealth in America has become even more disproportionate over the past decade, with the richest 10% of U.S. households representing 70% of all U.S. wealth in 2018, compared with 60% in 1989, according to a recent study by researchers at the Federal Reserve.

The study finds that the share of wealth among the richest 1% increased to 32% from 23% over the same period.

https://www.marketwatch.com/story/the-richest-10-of-households-now-represent-70-of-all-us-wealth-2019-05-24

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BUY GDVVP

JUNE 6, 2019. Gabelli Dividend & Income Trust GDV, a closed end fund, is offering a new issue of preferred stock.

The temporary ticker is GDVVP and we will be buying today. The permanent ticker is GDV-H. This is investment grade so if you want higher quality issues, this is the one for you. The price right now is $25.12 and pays a relatively low 5.3%.

The shares will be cumulative and will pay on the normal quarterly dividend schedule.

FUND DESCRIPTION:  The Gabelli Dividend & Income Trust is an exchange-traded closed-end fund (CEF) or a closed-end ETF that is officially described as a non-diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Gabelli Dividend & Income Trust seeks a high level of total return with an emphasis on dividends and income. FUND STRATEGY: Under normal market conditions, the Fund invests at least 80% of its assets in dividend paying or other income producing securities. In addition, under normal market conditions, at least 50% of the Fund’s assets will consist of dividend paying equity securities. In making stock selections, the Fund’s investment adviser looks for securities that have a superior yield, as well as capital gains potential. FUND MANAGEMENT: Gabelli Funds, LLC serves as investment adviser to the Fund.

NOW IN OUR 7TH YEAR

NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Keep scrolling down for more. And don’t forget to hit the like button. Go Here For “About and Links”

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IRM ON SALE. TRGP GOOD.

June 5, 2019. IRM Iron Mountain is in the Core Portfolio. This thing is ON SALE and you can buy for the first time, or add to positions. IRM goes thru the up and down cycles, not unusual. It is now at the ‘bottom’. This Company will be around forever and will provide you nice safe dividends.

https://seekingalpha.com/article/4268356-iron-mountain-yielding-8-percent-warrants-strong-buy-rating

TRGP is in the Core Portfolio and pays 8.9%. Very steady: BUY or ADD.

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SELLING BONDS

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June 4, 2019. We sold four Corporate Bonds, two of which are in the Core Portfolio. Two were purchased before we started this blog and were not listed: one of these was GAP the retail clothier. This segment is collapsing and if you hold their bonds, sell. We continue evaluating the LOWER rated bonds for possible sale.

Apollo. Cusip: 03761UAG1. 12% Total Return.

Amerigas. Cusip: 030981AH7. 15% Total Return.

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