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BUYING GBAB FOR IRA (NOT YOUR TAXABLE ACCOUNT)

February 24, 2017

Click here to see the Core Portfolio which lists all current positions.

Yesterday we mentioned that we are taking a gander at GBAB Guggenheim TAXABLE Municipal Managed Duration Trust…for a position in the IRA.

Keep in mind these are Taxable municipals, NOT the tax free muni’s that you see heavily advertised.

In actuality we have been looking at GBAB for years.  That just goes to show you how human emotions can affect investing decisions.  While we have been sitting on our ass, GBAB has fluctuated between $23 and $19…..all the while paying around 7%.  Right now we are looking at a $22.00 price.

If we had been paying attention we could have picked up GBAB at the lower price of $20.53 recently.

Guggenheim Taxable Municipal Managed Duration Trust, formerly Guggenheim Build America Bonds Managed Duration Trust, is a diversified closed-end management investment company. The Trust’s investment objective is to provide current income with a secondary objective of long-term capital appreciation. Under normal market conditions, the Trust will invest approximately 80% of its managed assets in taxable municipal securities, including Build America Bonds (BABs). Under normal market conditions, the Trust may invest approximately 20% of its managed assets in securities other than taxable municipal securities, including tax-exempt municipal securities, asset backed securities, senior loans and other income producing securities. It invests in a range of sectors, including power, school, university, transportation, water and sewer, hospital, investment grade corporates, city, county and preferred securities. Guggenheim Funds Investment Advisors, LLC serves as the advisor of the Trust.

Here is a detailed discussion on GBAB.

http://seekingalpha.com/article/4000147-need-income-check-taxable-munis-safe-yields-6-percent

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CHECK IT OUT

February 23, 2017

Click here to see the Core Portfolio which lists all current positions.

Alpha Gen Capital, at SeekingAlpha, has published a free copy of their December financial newsletter…as a sales pitch to get new subscribers.  (The cost is around $450 per year)  Realizing this is two month old data, we are providing a link below and encourage you to look at their portfolios.  They hold a lot of closed end funds and generally speaking we are not a fan due to the leverage and risk involved with closed end funds.  BUT we are interested in one of their holdings:   GBAB which is good for an IRA.

NOTE:  We are NOT a subscriber to the newsletter.  We do not know this author.  Every so often we see complimentary financial newsletters published and pass them along for your consideration.

http://seekingalpha.com/instablog/16243802-alpha-gen-capital/4960496-december-newsletter-invitation-join-yield-hunting

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BUY CORP. OFFICE TRUST. NEW POLL GIVES TRUMP 55%. FINALLY GETTING RID OF NEW YORK TIMES.

February 22, 2017

Click here to see the Core Portfolio which lists all current positions.

We own numerous ‘data center’ positions.  Today we are adding another position:  Corporate Office Property Trust.  The link below to an article will give you a detailed analysis of this sector.

BUY Corporate Bond Cusip # 22003BAH9

Yield to Maturity 4.08%.  No this is not a great yield but we are always trying to balance the return vs the risk.  It is difficult right now to get high yield with a low risk position.

Corporate Office Properties Trust is a real estate investment trust. The firm invests in real estate markets of United States. It specializes in acquiring, developing, owning, leasing and managing high quality office and data center properties. Corporate Office Properties Trust was founded in 1988 and is based in Columbia, Maryland.

http://seekingalpha.com/article/4046331-trump-reit-singing-corporate-office-property-trust-shoulda-woulda-coulda-blues

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Despite the efforts of the radical left wing press to kill Trump he gets 55% approval.

Friday, February 17, 2017

The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 55% of Likely U.S. Voters approve of President Trump’s job performance. Forty-five percent (45%) disapprove.

The latest figures include 39% who Strongly Approve of the way Trump is performing and 37% who Strongly Disapprove.

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A Must Read:  Prior Presidents had MORE problems than Trump!!!

http://edwardklein.com/when-it-comes-to-chaos-trump-has-nothing-on-previous-presidents/

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After months of consideration we are DROPPING our subscription to the New York Times.  This left wing liberal paper has jumped the shark and has NOW become so radicalized that virtually every article and discussion is full of Trump hate speech.  Enough is Enough.  Time to get of this rag.  In the same vain we are dropping Nordstroms, Kelloggs and numerous other radical left wing supporters from our shopping list. We hope you do the same.


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SELL TENET HEALTHCARE CORPORATE BOND

February 17, 2017

Way back in 2013 we suggested you look at Tenet Healthcare Corporate Bonds.

When you add up the dividends we have a big profit, altho the bond price has declined.

This position should be SOLD….the risk is just too high.  Now that Obamacare is going to be repealed, or may be repealed who knows with the disfunction in DC) Tenet will be hurt badly.

Note that it appears we forgot to list Tenet in the Core Portfolio.  But if you own, get out.

http://seekingalpha.com/article/4030141-tenet-healthcares-just-starting-recover-credit-metrics-will-rehab-first

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BOND MATURES, AND SELLING ANOTHER ONE

February 16, 2017

(UPDATE:  Thursday, February 16, 2017  The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 55% of Likely U.S. Voters approve of President Trump’s job performance. Forty-five percent (45%) disapprove.

The latest figures include 38% who Strongly Approve of the way Trump is performing and 36% who Strongly Disapprove.)

The Xerox Corporate Bond in the Core Portfolio has matured….so we say bye bye to this position.

Also, we have been reading negative discussions on the Frontier Corporate Bond held in the Core Portfolio.  The total return on this has been excellent and we have a nice profit, but it is time to SELL  Here is a link to one of the articles talking about Frontier.

http://seekingalpha.com/article/4044386-frontier-communications-follow-money-dividend-cut-imminent

As we mentioned a while back we continue looking at additional Corporates that may be suitable for selling.

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The Pope, a series on HBO, is one of the most spectacular and fascinating dramatic new series we have seen in many many years.  We suggest you hit the link below and get familiar with the best TV that has come down the pike in a long time.

The costumes are so rich, and we are told they spent tens of millions of dollars in building sets that duplicated the Vatican.  Really awesome.

http://www.hbo.com/the-young-pope/about/article.html

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YET ANOTHER CORPORATE BOND OPPORTUNITY

Click here to see the Core Portfolio which lists all current positions.

(UPDATE Feb 15:  It sure is nice seeing those dividend checks coming in.  So far today we have FIFTEEN divi payments….thats right, 15.  Why spend all your time buying and selling stocks when you can buy a position and just sit back and wait for the dividends to roll in.)

(UPDATE:  Yellen wants to raise rates sooner rather than later.  Our bond holdings will decrease in value but keep in mind that we hold individual bonds to maturity.  It can be alarming to see values decrease but this is temporary as they do mature at full value.  Typically the bond prices do start to trend upward after a rate increase, but having said that, we are always watching and will sell holdings if circumstances warrant.)

February 13, 2017

We have been taking advantage of numerous bond opportunities within the past few weeks.

PLEASE NOTE:  With only a few exceptions, we do NOT invest in bond mutual FUNDS and bond exchange traded funds.  They are the funds that CNBC and “financial advisors” try to sell you.  In a rising rate environment, bond FUNDS are losers.

We prefer to invest in INDIVIDUAL bonds, baby bonds, floating rate funds,  and target maturity bond funds.  See Core Portfolio for a listing.  We buy bonds with a maturity date in which you are assured of getting your money back (assuming the Company is still in business) and you also receive dividends while you own the bond.

So what are we looking at today.

Tailored Brands/Men’s Wearhouse is offering a lower quality corporate bond.  It provides an 8% yield to maturity in July 2022.

CUSIP 587118AE0

The Company is dishing up some pretty good numbers and so we are going to buy a very small number of the bonds.  This is by no means a high quality bond but if you want to take a little risk, this position might be good for you.

Here is some copy from the website and the link if you want to read the full article.  (having retired many years ago, we pay little attention to the clothing market, but the article is quite interesting even if you do not buy the bonds)

http://bond-yields.com/dress-up-your-portfolio-with-8-yields-from-mens-warehouse-bonds-maturing-july-2022/

For this week’s bond review, we look to to the retail industry to focus on the largest specialty retailer of men’s suits in the U.S. and Canada.  Men’s Wearhouse (a part of the holding company, Tailored Brands) recently posted excellent third quarter results for the three months ending October 29, 2016.

  • A 20.3% increase in Q3 operating income.

  • Operating cash flow for the first nine months of FY 2016 was $176.0 million, $65 million higher than the previous year period.

  • Earnings per share in Q3 registered $0.58 per share as compared to a loss of $0.56 a year earlier.

  • Annualized cost reductions in Q3 totaling $17 million.

  • Debt reduction in Q3 of $18.5 million.

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ANOTHER OF OUR INFAMOUS “HEADIN TO VEGAS” PLAYS. BONDS AT FIRE SALE PRICES.

February 9, 2017

WARNING:  SUPER RISKY.  PLAY WITH MONEY YOU CAN AFFORD TO LOSE.

Every so often you gotta have some fun and take a risk.  Right?

This time we are flying out to space and buying a satellite operator.

Image result for satellites

We are buying Intelsat: the corporate bond is priced at a stupid price of $355.  The plan is for the bond to mature at $1000 and also receive the dividends for five years.

Go to the link below which provides an extensive discussion.

CUSIP# 458204AP9

Matures June 2021

This week’s we look toward space, where this week’s bond issuer focuses its energy and resources. Intelsat is the world’s leading satellite operator in terms of capacity and geographic reach.  The company has had a busy 2016, with several exceptional developments, including;

  • Debt reduction in the amount of $704.2 million,

  • Extending of its debt maturities (its next debt maturity is not until 2021).

  • Successful launch of four additional satellites, and

  • Q3 2016 net income of $195.6 million versus $78.0 million a year earlier.

http://bond-yields.com/blast-upwards-to-over-40-yields-with-intelsats-june-2021-bonds/

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An Emerson College poll found that 49 percent of U.S. voters believe that the Trump administration is “truthful,” while only 39 percent feel that way about the news media. Worse, for the so-called “opposition party,” 53 percent of those surveyed described the media as “untruthful.”

The poll, released on Tuesday, also showed that Americans are divided on Trump’s performance so far — 48 percent of registered voters approve of the job that Trump is doing, compared to 47 percent who disapprove.

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