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SELL FAX

May 4, 2018

FAX is dead money.  SELL

We have owned FAX for about a year and it has been a loser.  If we add in dividends for a total return number, we are barely breaking even.  At least we did not lose money, which is always your first objective.  Another case of dead money.

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Amazing comments from Chris Matthews on MSNBC  (He is an ultra-liberal whack-job who hates Trump.)

Matthews, the Pennsylvania native who has always understood what motivates blue-collar voters in elections and the types of candidates who appeal to them, said it will be difficult for Democrats to beat Trump in 2020 in a one-on-one matchup because “the man with the sun on his face always beats the guy behind the desk.”

“Who are the Democrats going to put up who has a face, the sun on his face, who comes across as Mr. America—the guy or woman who just smiles and is American, is so healthy and happy to be an American, and wants to knock this guy off his throne? Who is that person?” Matthews reportedly asked. “That’s a hell of a question, isn’t it? A helluva question. Because if it is somebody with a dark suit on and it looks like they belong behind a desk somewhere, who may be very good on full funding for Title X programs—you know, who’s one of those people, you know? It’s very hard to figure out. I can think of a lot of running mates.”

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REVISIT CTL. PENSIONS. SCAMS.

May 3, 2018

We recently suggested you buy a small position in CTL, which pays 11%.

Due to declining markets over the last two days, CTL is now a dollar CHEAPER.  The momentum is still up on this stock, and if you did not buy a few days back, you should look at buying a position today.  Don’t let the volatility scare you away from CTL.

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Respondents told poll takers at USA Today and Suffolk University in a recent survey:
“Nearly two-thirds of adult U.S. citizens will stay away from the polls during the coming midterm elections, and they say they have given up on the political parties and a system that they say is beyond reform and repair…

A majority of those non-voters would like to see a third party or multiple parties.” –Suffolk University

And the corruption in government is becoming apparent to those who choose to opt out of voting. About 68 percent of independent voters and party registered voters who say they are unlikely to vote this year agreed with the statement:

“I don’t pay much attention to politics because it is so corrupt.”

https://www.zerohedge.com/news/2018-04-30/almost-23-americans-have-given-political-parties-citing-corruption-government

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We all know that e-mail and the internet is loaded with scams and spam.  But that old-fashioned direct mail industry (yes those envelopes you get in the mailbox) is still alive and well.

Last week we got an envelope (we get these often) from ‘Michael London”.  Of course it was obviously spam but we opened it anyway to see what was going on.

To make a long story short, it was pushing an investment.  But if you go way back to page 15. buried in the half page of mice type you get this:

“These materials are a solicitation for subscriptions for the newsletter and a paid promotional advertisement of (investment)……”

In other words the Company ITSELF is paying a PR firm to promote their own stock thru this deceitful mailing.  Don’t buy into these fake newsletters and scam companies.

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Don’t plan on getting your pension!!  Pension funds are in serious trouble and you need to start watching this if you plan on getting a pension from your employer.  Better start saving.  Read this.

“Today, the hard stop is five to 10 years away, within the career plans of current officials. In the next decade, and probably within five years, some large states are going to face insolvency due to pensions, absent major changes.

If we extrapolate from the past, rather than use promises in the state budget, current employees plus the state will contribute about $25 billion over those seven years, which could provide another few years before the till is empty. But it will also add around $60 billion of future liabilities to current employees. The system probably breaks down before the pension fund gets to zero, for example if assets were to fall below $30 billion while projected future liabilities exceeded $300 billion. Even the most optimistic people would have to admit the situation is unsustainable. This could happen in three years in a bad stock market, or perhaps 10 with good stock returns. But fund assets are so low relative to payouts that good returns aren’t that helpful.

The next phase of public pension reform will likely be touched off by a stock market decline that creates the real possibility of at least one state fund running out of cash within a couple of years. The math says that tax increases and spending cuts cannot do much.”

https://seekingalpha.com/article/4166196-pension-crisis-worse-think?app=1&uprof=46&isDirectRoadblock=false

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MAIN, CTL, OFSSL

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

April 30, 2018

NOTE:  The positions we are talking about below have jumped up this morning.  We suggest you WAIT for the prices to settle down, before buying.

MAIN is a Business Development Company that took a little tumble from a high of $40 down to $36, and the current price is $38.00.  We have been watching MAIN for years but have never owned it.  The momentum is turning up and we are buying a small position.

It pays just over 6%.  A nice advantage to MAIN is it’s MONTHLY dividend payment.  In addition, they are going to pay a supplemental dividend in June which is a very nice benefit.  Go to the link below for the full article.

Main Street has all the qualities I look for in a high yield income opportunity. A solid management team, strong growth prospects, long-term history of returning capital to shareholders, proven track record of increasing NAV and DNII, and a well-diversified business strategy involving debt and equity investment in LMM companies that offers the opportunity for capital appreciation as well as income. Furthermore, the talented and conservative management team allows me to sleep very well at night. Those are my thoughts on the matter I look forward to reading yours!

https://seekingalpha.com/article/4167093-solid-bdc-buy-7_6-percent-yield-top-notch-management-dividend-covered-insiders-buying

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OFSSL Filled on Friday.  Our Limit Order for $25.07 was filled:  just barely before the market closed on Friday.  We actually did not expect this fill as the sellers seemed to be stubborn in holding a higher price.  OFSSL closed at $24.73 so if we had a crystal ball, we would have placed our order much lower.  This is definitely a buy at $24.73.

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CenturyLink CTL is a turnaround story and speculative play that pays over 11%.  The chart has been looking terrible as it has been tanking since 2014!!!!.  But there is growing consensus that this company is turning around.  It hit a bottom around $14 is now at $18.90.

If you are willing to take the risk, start with a SMALL POSITION.

There’s also a distinct likelihood that all the potential bad news has been more than priced into the stock. That sets the stage for some more positive headlines that have been missing for too long. The team-up of Level 3 and CenturyLink should give the organization plenty of things to tout as the year wears on. The shift away from consumers and towards corporate customers has been an understated growth opportunity. Investors may finally be starting to figure it out.

https://seekingalpha.com/article/4166095-centurylink-just-became-interesting-even-speculative-trade

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Talking about the so -called Wall Street “expert” forecasters:

It is actually worse than even these facts might suggest. Salil Mehta is an independent statistician and blogger who was previously the director of research and analytics for the United States Treasury’s Troubled Asset Relief Program and for the federal Pension Benefit Guaranty Corporation. Mr. Mehta says, “It’s not easy to be as bad as they are. They are much worse than random chance alone would predict.”

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LOOK AT OFSSL.

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio to see a listing of current positions.

April 27, 2018

We are placing a LIMIT order Good til Cancel on OFSSL at $25,07.  The price today is $25.14 and we do NOT want to pay this much.  So we will just wait and watch and hopefully the price will come down.  If it does not, we can let this one go.  Go to the link below for more information.

The new baby bond from OFS Capital has a coupon of 6.375% and has a maturity date in 2025. The company may redeem the bonds early beginning in 2020. While the coupon is not as high as we would like, the risk/reward seems reasonable to us at this time.

OFS Capital is a business development company (BDC) which has had a recent history of fairly solid net income. BDCs loan money to middle market companies at fairly high interest rates. Because of this, we advocate investments in BDC-related securities are best held during economic expansions and that investors should consider exiting if the economy is weakening.

https://www.dividendinvestor.com/new-issue-baby-bond-portfolio/

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Stock Gumshoe is a website that has been around for a long time.  The author discusses ‘claims’ made by financial newsletter publishers, and there is a section that evaluates the publications.  If you feel a financial newsletter would be beneficial in your investing, you will want to check out the evaluations in this site.

As we have mentioned in the past, we have subscribed to several dozens of newsletters over the years.  And most of them are a waste of time and money.  So before subscribing, check out this site to see their thoughts.  (If you want to get into trading stocks, go to http://www.philsgang.com:  they are by far the best site for learning the technical of trading)  Here is the link.

https://www.stockgumshoe.com/

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In all of our many years on this Earth, we have seen nothing as outrageous as the concept of ‘universal basic income’.  This kind of idiotic concept is truly hard to believe.  Basically the government sends you ‘free’ money every month.  Yes folks, you can sit around every day eating Cheetos and watching TV.  Hey, why work?  Who me?  LOL.  And who pays for this farce?  Well, let’s see…………….YOU the taxpayer.

A few months ago, we read that this type of system in the US would cost literally trillions and trillions of dollars, sending the country into bankruptcy.

Go to the link below for the full article.

While proposals for universal basic income programs vary, the most common one is a system in which the federal government sends out regular checks to everyone, regardless of their earnings or employment. That system is being tested in Canada as well as Stockton, California, which recently emerged from bankruptcy but remains mired in poverty.
Perhaps Finland’s failure will wake some of the free shit army up that it can’t end well.

https://www.zerohedge.com/news/2018-04-24/finland-abandons-universal-basic-income-experiment-after-two-years

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BUY CGBD AND SUMMIT MIDSTREAM

April 26, 2018

Summit Midstream is a MLP that gathers and processes natural gas.  We are buying the corporate bonds that mature in 2022. 

CUSIP:  86614WAC0  Mature August 2022

Note:  These are individual corporate bonds that mature at a specific date.  They are NOT a bond fund–we generally do NOT like bond funds.  We hold individual bonds to maturity at which time you get your money back in addition to the dividends that you have received.  You are buying debt:  not the stock which has dropped recently.

BUSINESS: Summit Midstream Partners, LP is a growth-oriented master limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States. SMLP currently provides natural gas, crude oil and produced water gathering services pursuant to primarily long-term and fee-based gathering and processing agreements with our customers and counterparties in five unconventional resource basins.

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Consolidated Communications is offering a corporate bond at a bargain price:  we call these ‘distressed’ and have had good luck in this area.  We are simply maxed out on funds, so we will not be adding.  BUT if you want to take some risk to get 8.57%, read the article which is linked below.

CUSIP:  20903XAE3  Mature October 2022.

Consolidated’s 2022 bonds are currently discounted, giving them a very competitive yield-to-maturity of over 8.5%. CNSL’s excellent track record for integrating acquired companies makes this outstanding yield even more attractive and these bonds a perfect candidate for addition to Durig’s Fixed Income 2 (FX2) managed income portfolio.

https://seekingalpha.com/article/4165515-connect-8_57-percent-ytm-consolidated-communications-bonds-mature-october-2022-durig-fixed?app=1&uprof=46&isDirectRoadblock=false

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We own CGBD in the Core Portfolio.  We came across a SeekingAlpha.com article which calls this a ‘strong buy’.  The link to the article is below:  it is extremely long and boring, and almost impossible to read and understand!!  But if you like the Company details, read it.  CGBD pays just over 8%

I strongly urge my readers to have a portfolio where most of all your BDC investments are in lower PWAY BDCs. I urge conservative investors to only hold lower than average PWAY BDCs. Owning CGBD gets you toward that goal. There is metric justification to grade this BDC as a “strong buy”.

https://seekingalpha.com/article/4164981-identifying-low-risk-bdcs-carlyle-group-bdc

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DEAD MONEY

April 19, 2018

We bought RA back in 2017.  This turned out to be a mistake as it has dropped $2 per share.  That’s the bad news.

But…..the total return is about breakeven, as the dividends received have made up for the share decline.  Still, this is not our goal!!!  In essence this has been dead money.

So here is the good news.  The technicals are telling us that this thing has bottomed and is now turning up.  Paying almost 11%, RA is a buy.

FUND DESCRIPTION: Brookfield Real Assets Income Fund, Inc. is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Brookfield Real Assets Income Fund, Inc. seeks to provide a high total return, primarily through high current income and secondarily, through growth of capital. FUND STRATEGY: The Fund seeks to meet its investment objective by investing primarily in securities and other instruments of companies and issuers in the real assets, asset class, which includes the following: Real Estate Securities; Infrastructure Securities; and Natural Resources Securities (collectively, Real Asset Companies and Issuers). FUND MANAGEMENT: Brookfield Investment Management Inc. is the Investment Adviser of the Fund. Schroder Investment Management North America Inc. (SIMNA) is the Sub-Adviser for the Fund’s investments in mortgage-backed securities.

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Here is a very interesting piece of information that we came across.  Many of the financial ‘experts’ that are out there will tell you to ‘sell everything’ if the market drops below the 200 day moving average.

“In fact, the S&P 500 has crossed the 200-day moving average 150 times since 1997. If this were a perfect signal, that would imply 75 separate market corrections.

In reality, in that time, there were only 11 market corrections when stocks fell 10 percent or worse. That means the majority of the time when the S&P 500 went below the 200-day it was a head fake, when investors sold out of the market only to buy back higher.”

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LOOK AT UTF

Welcome to the 6th year of Dividend Income Investor.

Before buying any investment, go to Core Portfolio to see a listing of current positions.

April 17, 2018

We bought UTF in January.  It goes ex-dividend today, and is a buy.  The technical momentum indicators are moving up.  Pays 8%.  Here is a link to the original post.

https://luvthosedividends.com/2017/01/09/toll-roads-and-pipelines-boring-but-pays-well-buy-utf/

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With the fake-news ultra-liberal press continuously dumping on Trump it is amazing that his job approval is 51%.  Altho the press and deep state is doing everything in their power to bring him down, half of the citizens are not buying into the continuing hate speech.

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There is an article in SeekingAlpha which describes the current status of UTF.  It is going ex-dividend today and we will be adding to this position, probably on April 18.

Go this article if you want the details:

https://seekingalpha.com/article/4161742-closed-end-fund-utf-fund-weather-trade-wars

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Economy NOT so hot after all????  Link to full article below.

So we decided to recreate the chart using data JPM disclosed in its earnings supplement. What we found may explain why JPM “forgot” and keeps “forgetting” to add that particular slide. It shows that after bottoming in late 2015, JPM’s net credit card chargeoffs have been steadily rising, passing $1 billion as of Q2 2017, and as of Q1 2018 were at $1.17BN, back to levels last seen in June 2012 or nearly 6 years ago, suggesting that contrary to Jamie Dimon’s commentary, the US consumer is not doing all that hot after all.

https://www.zerohedge.com/news/2018-04-13/missing-slide-jpm-credit-card-charge-offs-surge-six-year-high

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One of those “interesting” stories that we come across.

The Associated Press
An average of 39 percent of U.S. Catholics attended church weekly during the heart of the Francis papacy, from 2014 to 2017, Gallup found in a survey released April 9, which represents a significant drop from the 45 percent of Catholics who attended weekly Mass from 2005 to 2008, in the early years of the Benedict pontificate.

Weekly Mass attendance among American Catholics had stabilized in the mid-2000s at around 45 percent, after falling sharply during the period comprising the Second Vatican Council (1962-1965) and its aftermath, which many Catholics experienced as a time of confusion and upheaval.

The downward trend has resumed during the Francis years, falling more abruptly than it had since the 1970s.

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