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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!


@rhythmmethod wrote:

... I love T&A as much as the next guy but it’s distracting from investing...


What more needs to be said!

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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!


...At your request, I'll stay away...bye.

R48


I didn't take it that way.

The way I see it, no matter how much one's enjoys Skynyrd, it's still bad form to shout "Freebird" at the opera.

Dividend payers that I either own and might add to, or am contemplating limit orders:

MMM   4-star   4.15% FDY    10-yr return 8.24%  < own

PFE       5-star    4.65% FDY    10-yr return 9.86%

CSCO    4-star    3.83% FDY    10-yr return  5.73%

ABBV    4-star    5.53% FDY     5-yr return  11.69%

GSK       4-star    6.33% FDY    10-yr return 4.89%  < own

T            4-star    6.03% FDY    10-yr return 7.57%  < own

CAT        4-star    4.13% FDY    10-yr return 7.70%

EMR      5-star     3.97% FDY   10-yr return  3.52%  < own

TROW   4-star      3.35% FDY   10-yr return 9.34%

MCD     4-star      2.82% FDY  10-yr return 12.44%

KO         4-star      3.38% FDY  10-yr return  8.66%

 

 

 

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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!


@yogibearbull wrote:

My multiple low-ball limit-buys got filled for muni CEF NMZ yesterday.

https://stockcharts.com/h-sc/ui?s=NMZ&p=D&b=5&g=0&id=p93834470752


Assuming here that you use the 200 DMA to help decide on a "stepped" buy prices?

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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!


@cliff wrote:
...

 

 

The prices available to income investors over the last several weeks makes me wonder about that efficient market crapola I read about once.  The common of Vector Group (VGR), a crapass company reviled by anyone with an ounce of common sense, can be had at only a 7.7% yield while the preferred, the preferred mind you, of Enbridge (ENB), with investment grade debt, was scooped up at a juicy 9.2% yield.

Other examples abound.  I won't bore anyone and I don't want to go off topic on your sorta off topic direction.


I thought about the "efficient markets theory" too recently. My assumption is that it only holds true on the average and over time, short term it can be exploited. Corollary: Some stocks are just not meant to be held long term IMO. I apologize in advance for being pedantic. I will be looking at some of these 4/5* midstreams paying double digits. Thanks for posting them.

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Explorer ○○○

Re: LET"S CELEBRATE BUYING LOW!

In regards to midstream, I've been poking around too and thought I would add the following from Wells Advisors that seems to do a decent job covering them.

From WFA - Who’s Best Positioned? Of the large caps, we believe ENB, EPD, KMI,
MMP, PSXP, TCP, TRP, and WMB are best positioned to withstand a
temporary downturn in oil prices. Our analysis assumes crude prices
stay low ($30/Bbl) for the balance of the year, but ultimately recover in
2021+. If crude stays lower for longer, our analysis could be flawed.
 Who’s Worst Positioned? To analyze downside risk, we ran three
calculations. (1) The most acute risk – which HY companies have debt
maturities in 2020/21 that are too large to fund on the revolver. MMLP
is the only company in our universe with a meaningful shortfall. (2)
Assuming an average EBITDA decline of 15% (range of 5-20%) in
2021, we calculate the following companies would be in danger of
violating debt covenants: DCP, DKL, ENLC, EQM/ETRN, ENBL, GEL,
NGL, SMLP, TRGP, WES and USAC. These companies may need to cut
the distribution/dividend to accelerate de-leveraging in addition to
asset sales/capex cuts. (3) Finally, a number of large cap companies
have low covenant leverage, but have some risk of moving outside the
guideposts required for investment grade credit ratings. These
companies include: ENBL, ET, OKE, PAA, PPL, and WES. These
companies may need to sell assets to reduce leverage.

Note: I put in a request for an early withdraw for one of my 1 year CDs yielding 2% at Ally to buy some stocks. I think I'll be pretty happy with the decision in a couple of years.

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Re: LET"S CELEBRATE BUYING LOW!


@DrVenture wrote:

@yogibearbull wrote:

My multiple low-ball limit-buys got filled for muni CEF NMZ yesterday.

https://stockcharts.com/h-sc/ui?s=NMZ&p=D&b=5&g=0&id=p93834470752


Assuming here that you use the 200 DMA to help decide on a "stepped" buy prices?


Well, 200-dMA was broken decisively on 3/11/20. I know that breaks of 200-dMA can be violent but this being a bond CEF, I thought 13.40 was low-ball enough. That got filled in just a couple of hours on 3/11/20. I entered a new low-ball order at 12.40 and that got filled on 3/12/20 and I entered a still another low-ball order at 11.50 and that got filled too on 3/12/20 and it closed below that on Thursday. So, in 2 days, I had 3 low-ball limit orders filled for bond CEF NMZ, a first for me. Depending on stock/ETF, I use distance [absolute or %] below 200-dMA for low-ball limits based on past patterns. One shouldn't do this for individual stocks as they can rush to 0 but I have used it for funds.

Regrettably, as I was doing this and other trades on Wednesday-Thursday, I missed a fantastic opportunity to buy PCI at 18.xx [for T+2 settlement] - it was there briefly and moved away quickly before I could get to it. Moreover, Schwab didn't allow order entry for it in IRA - I was going to cover it by the sale of an OEF [for T+1 settlement] and in the past this had worked but not on Thursday. I could have called Schwab for execution but PCI had moved up already.

YBB
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Participant ○○

Re: LET"S CELEBRATE BUYING LOW!

Bought JPM at $89.66 (4.0% yield) and WFC at $29.07( 6.6% yield) this past week. Will add some more KMI if it stays down in 8% yield range.

Looking real hard at adding more DOW with 10% yield. My thinking if they cut dividend in half yield will be in 5% range. Not bad for an old red*neck. :)

OKE yield cut in half would be around 6%. Since I like everyone else has no ideal which way the market will go this year take all of the above information with thinking that you get what you pay for! :)

Copie

P.S. I own the above stocks plus 35 more!

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Contributor ○○

Re: LET"S CELEBRATE BUYING LOW!


@copie wrote:

Bought JPM at $89.66 (4.0% yield) and WFC at $29.07( 6.6% yield) this past week. Will add some more KMI if it stays down in 8% yield range.

Copie

P.S. I own the above stocks plus 35 more!


Thanks for chiming in @copie. I’ve followed you in the past and was hoping we’d hear from you.. Post often and stay well.

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Explorer ○○

Re: LET"S CELEBRATE BUYING LOW!

On 1/14/2020 I bought RWM (short the Russell 2000) for $36.68. Looking at a 5 year chart, it looks like I pretty **bleep** near caught the bottom.  Up 35%.

Same story with EUM (short emerging markets) bought 1/24 at 17.13 for a 20% gain

MStar bleeped me. The bleep is that thing that holds water back.

 

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Participant ○○

Re: LET"S CELEBRATE BUYING LOW!

I've been putting in what I thought were low ball LIMIT orders.  On Thursday last week, the market open below my low ball.  However, strange as it may be, I essentially got the market price on the open... In other words, lower than my low ball!!!

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Participant ○○

Re: LET"S CELEBRATE BUYING LOW!

I should add, that with this market as it is, I've decided to offload all shares of MINT.

This will give me some more ammo as I was starting to run low.

At some point, and I not sure when, I'll have to think about margin or taking out a home equity loan.

Just not sure how aggressive to get.

 

Here's to continued insanity!

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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!

I hope the best for you 3M.  I have bought the dips and am slightly up on Friday, but if there is another big drop, my thinking is there will be a bigger one yet to come. I am going to wait.


@3M wrote:

I should add, that with this market as it is, I've decided to offload all shares of MINT.

This will give me some more ammo as I was starting to run low.

At some point, and I not sure when, I'll have to think about margin or taking out a home equity loan.

Just not sure how aggressive to get.

 

Here's to continued insanity!


 

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Contributor ○○

Re: LET"S CELEBRATE BUYING LOW!

@cliff wrote:


@rhythmmethod wrote:

Greetings Brothers and Sisters, At the risk of going a bit off topic on this forum . . . . . 

rm, just buying a security without significant yield at a price that turns out to be low at some time in the future is indeed off topic.  This forum's purpose encourages us to "find ways to collect an income thru dividend and income investing."  Inviting rabble and the hoi polloi to participate distracts serious investors whose primary focus is on income.  I do personally forgive you for this transgression and perhaps others will also.  I'm not going to actively campaign for others to forgive you but it's okay by me if they do.  Do let's stick to income focused stuff around here in the future, though.

@cliff , I thought it was a healthy topic but on reflection I think I was “shedding” too much OT viral activity. I promise in the future to use vocabulary and decorum more appropriate to the specifics of forum. I may go into self imposed quarantine and only reply but not open convos or a while.


 

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Frequent Contributor

Re: LET"S CELEBRATE BUYING LOW!


@copie wrote:

Bought JPM at $89.66 (4.0% yield) and WFC at $29.07( 6.6% yield) this past week. Will add some more KMI if it stays down in 8% yield range.

...

I looked at WFC, but M* analysis is very critical of management, so I balked. The FDY looks good.

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Participant ○○

Re: LET"S CELEBRATE BUYING LOW!

Added some more DUK around 5% yield.  With hot weather coming can see those AC units kicking on! :)

I bought WFC  with chance they have turned it around. Who knows these days!

Copie

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Participant ○○○

Re: LET"S CELEBRATE BUYING LOW!


@rhythmmethod wrote:

@cliff , I thought it was a healthy topic but on reflection I think I was “shedding” too much OT viral activity. I promise in the future to use vocabulary and decorum more appropriate to the specifics of forum. I may go into self imposed quarantine and only reply but not open convos or a while.


 


@rhythmmethod, no need to go overboard now.  I think you should open discussions anytime you're so moved.  A suggestion, though:  Spiff up the headline, make it really snazzy, maybe use CAPS and exclamation marks, and definitely use the word YIELD on this forum.  Yield and cash flow are the secret sauce ingredients around here.  ;-)

Phew!  Another day in the books.  Here's my buys today:

Enbridge preferred EBGEF: $13.45 and 10.0% yield

Vector Group VGR: $9.89 and 8.1% yield

Nustar baby bond NSS: $15.13 and 15.3% yield

Icahn Enterprises IEP: $52.03 and 15.4% yield

CHS Inc preferred CHSCL: $24.92 and $7.5% yield (hasn't been available at this price since its debut)

 

And in the speculative category:

Apple AAPL: $250.44

Berkshire Hathaway BRK.B: $174.20

Vanguard agglomeration VIG: $96.65

Constellation Brands STZ: $113.44

 

Finally, in other markets:

1 3/4 liter J&B Scotch: 6-pack @ $19.99 each

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Contributor ○○

Re: LET'S CELEBRATE BUYING HIGH YIELD AT A LOW PRICE!

@cliff said:

Finally, in other markets:

1 3/4 liter J&B Scotch: 6-pack @ $19.99 each

Mine - (edit updated 11PM)

SCHD - 44.43 and 3.54% yield (This is my new catch all fund for yield up to 4-5 %. I suspect before this mess is over it'll be yielding that)

OHI (Ouch) 21.66 and 14.11% @KathieL You know what's going on here? (I had seen the CV at nursing homes info. I was wondering if anything specific to OHI you might have known about)

DSL 13.25 and 13.09%

FPF 17.50 and 9.18%

JPM 90.33 and 4.07%

PTY 13.90 and 11.45%

Question @cliff I'm using M* info for yield which is from last trading date, uptated at 6PM, I think, so all yield is higher. Is that what you use? I figured you calculated it yourself.

- - - - 

After adding this yield I ventured to the unwashed masses and bot MSFT 140.00 

Also a fine Sativa for work and  a mellow Indica to help with sleep.

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Participant ○○○

Re: LET'S CELEBRATE BUYING HIGH YIELD AT A LOW PRICE!


@rhythmmethod wrote:

 

Question @cliff I'm using M* info which is from last trading date, uptated at 6PM ,I think., so all yield is higher. Is that what you use? I figured you calculated it yourself.

 


I know the cash dividend of the securities I hold to the penny, in some cases to the fraction of a penny.  So, yes, I calculate the percentage yield myself on the buys I've posted.  I never rely on any percentage yield listed anywhere else.

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Frequent Contributor

Re: LET'S CELEBRATE BUYING HIGH YIELD AT A LOW PRICE!


@rhythmmethod wrote:

After adding this yield I ventured to the unwashed masses and bot MSFT 140.00 

Also a fine Sativa for work and  a mellow Indica to help with sleep.


The wife insisted on a liquor store run after work today. Says she sees day drinking in our future.

Meanwhile, no shortage of party favors here. A few drops of tincture is always good for what ails you.

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Participant ○○

Re: LET'S CELEBRATE BUYING HIGH YIELD AT A LOW PRICE!

RM is one of my favorite posters and as such I am assuming that the hyperbole in the title of this thread was inadvertent. 

Buying High Yield at Low Price?   As your price goes up your yield automatically drops.   Also, there is a good possibility we will have distribution cuts, given massive top line decline, even if for a quarter or two.  Even otherwise, we will only be buying low priced instruments - not both high yields and low prices. 

I hope to come back to this thread to learn about all the good investment tickers folks may have shared.

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