sailrmac

Darren McCammon

sailrmac’s Activity

Tue Aug 25

NL

Boards Post

sailrmac replied to the Dividend Growth Investing board. 6:43 PM

Re: Dividend basket

Based on your description (only 4% of assets, likely to be inherited) and assuming it is in a taxable account I'd tend to favor limited partnerships and maybe a covered call CEF. They will pay her out a high amount of tax advantaged income, most of [more]

NL

Boards Post

sailrmac replied to the Real Estate Inv. Trusts: REITs board. 2:22 PM

Re: VTR, TPZ, AMU, KMI

Just to play devils advocate:

VTR: 8.4% AFFO yield on a 100% Debt/Equity is ok but not particularly exciting. I can see putting a normal position here but not any more.

TPZ: The yield you quote includes capital gains. If you just [more]

NL

Boards Post

sailrmac replied to the Real Estate Inv. Trusts: REITs board. 2:05 PM

Re: VTR, TPZ, AMU, KMI

Just to play devils advocate:

VTR: 8.4% AFFO Yield on a stock with 100% debt/eq

Thu Aug 20

NL

Boards Post

sailrmac replied to the Real Estate Inv. Trusts: REITs board. 11:19 AM

Re: RYN: hitting new low's

Understood that Russia has an infrastructure issue. However, it's all relative, the lumber that Russia can get to market effectively is being produced at half the cost relative to the dollar that it used to be. Furthermore, infrastructure challenges [more]

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 11:13 AM

Re: Recent BCC Signals

Based on what someone said in another tread, I wonder if anyone has ever looked at selling only after NH/NL has gone bear 2 or three times in a row in order to prevent whipsaws?

Something like a gradual in and out: NH/NL goes bear you do [more]

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 11:03 AM

Re: Excluding Dividends from Backtests

StevnFool,

You used monthly compounding of dividends, quarterly is probably more accurate.

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 11:01 AM

Re: Excluding Dividends from Backtests

The latter method which comes up with 10.36% is more correct. The former method was not accounting for the effect of compounding (and buying more shares when the price is low?). In effect a 10.36% yield produces a 12.35% CAGR thanks to compounding [more]

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 10:57 AM

Re: Excluding Dividends from Backtests

I think you mean implied dividend yield = 1.3151/1.1916 - 1 = 10.36%

Tue Aug 11

NL

Boards Post

sailrmac replied to the Macro Economic Trends and Risks board. 4:48 PM

Re: Pulse event could kill most of us

Nope but I'll take a look.

NL

Boards Post

sailrmac replied to the Real Estate Inv. Trusts: REITs board. 4:44 PM

Re: RYN: hitting new low's

RYN also has to compete against other timber producers who are benefiting from a lower currency relative to the dollar. A ruble was worth 3¢ in 2014, now it's worth 1.5¢. Assuming no other changes, the cost of producing lumber in Russia has [more]

Fri Jul 31

NL

Boards Post

sailrmac replied to the Macro Economic Trends and Risks board. 4:36 PM

Re: Pulse event could kill most of us

Actually if you read popular disaster/survival fiction where an EMP occurs (they usually don't seem to know if it's from nuclear bombs in the atmosphere or a solar flare) 90% death within 3 years in the US is a common assumption. In this type of [more]

NL

Boards Post

sailrmac replied to the Real Estate Investing board. 4:13 PM

Re: Help funding for buying property

Banks will usually not question money that has been in a bank account for at least three months prior to receiving an application.

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 4:05 PM

Re: Recent BCC Signals

I wonder if frequent whipsaws on NH/NL are common or if they have signaled you are either near a top or low future returns in the past?


FYI, the way I've started to use the bear signals is if the NH/NL goes bear, I might not buy as much [more]

Sun Jul 12

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 1:58 PM

Re: Fidelity

My advice would be to go with an independent fee only financial adviser. They don't have to be a CFP but that's a decent screening criteria. The big deal is how are they getting paid? If 1% of assets under management or $x per hour, that's what you [more]

Sat Jul 11

NL

Boards Post

sailrmac replied to the Mechanical Investing board. 11:30 AM

Re: return of capital, not return on capital

The analysis suffers from paying to much attention to what is in the rear view mirror and not enough to what is in front of you. It has some end point bias. Interest rates have been declining for the last 30 years (e.g. 10 Yr Treasury was 15% in 1982 [more]

Thu Feb 26

NL

Watercooler Post

sailrmac wrote 3:40 PM

The US government should change tax laws allowing all corporations the option to become pass-through entities. Simplified somewhat, pass-through entities (e.g. BDC's, MLP's, REIT's) are those who do not have to pay corporate income tax provided they distribute the majority of their taxable income, usually 90%, to shareholders. These distributions avoid double taxation (corporate taxes + dividend taxes) but the receivers have to pay marginal tax rates on them (typically 28-42%) instead of receiving the lower dividend tax rate status (15-20%). The benefits to our society would be significant: 1.) This would both reduce the machinations companies go through to avoid taxes, and encourage US job formation. Companies hold sizable profits overseas in order to avoid paying US taxes on them. Elimination of the corporate tax allows them to repatriate these funds to the US, returning them to shareholders or using them to fund growth. Shareholders are much more likely to spend or re-invest the funds rather than letting them sit in banks like many companies do. This would jump start the economy by putting the money to work. In economics terms, it would increase the velocity of money. As importantly, companies would no longer have any tax incentives to build factories and transfer patents overseas in order to recognize their profits overseas. This would further encourage US jobs and competitiveness. 2.) In my, and Economist magazine's, opinion pass through entities provide advantages over regular C-corps for the investor. Many studies have shown dividend paying entities outperforming non-dividend payers. Some have even shown higher dividend payers outperform lower dividend payers on both a nominal and risk adjusted basis. Since pass-through entities must distribute 90% of their taxable income they tend to high yield. Furthermore, this effectively means they need to go back to shareholders (or banks) in order to raise funds for large projects. Thus they must be more selective with projects and able to justify large projects to third party stakeholders in order to access funding. 3.) If you believe in a progressive tax system, this would ensure fairness. Warren Buffett for instance would no longer be paying a lower average rate on his taxes than his secretary. This is because 90% of taxable income must be distributed and the distribution from these pass through entities would be subject to the same marginal tax rates as salaried or hourly income. Indeed Warren's average tax rate under this system is very likely to be higher than his secretaries. He would be declaring much more income, so a higher proportion of which would be in the higher brackets. However, it would still likely be close to revenue neutral for the government in the short term. Basically a reduction in corporate taxes, especially those paid by the small business owner, would be offset by an increase in income taxes for the top 10% of earners. Longer term it would actually be revenue positive for the government if you believe, as I do, that the change is very likely to lead to a higher US growth rate. While passing anything through our legislative branch seems to be a stretch nowadays, I think this is a worthwhile proposal that both could actually happen and would have a significant positive effect on our economy. Themes: taxes, economy, growth

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Boards Stats & Trivia

Big red star, 1000 posts Old School Fool
Board Posts 4534
Recs Received 6651
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Threads Started 427
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Very First Post Re: Alternate Standard of Risk (8/28/1999)
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