The running of the bulls! (Stock market trading thread) - Page 10

clovis · #**271** 07/03/12, 09:28 AM

Anyone have advice on MLP's, or Master Limited Partnerships?

What are the pitfalls and risks of MLP's?

Michael W. Smith · #**272** 07/03/12, 10:35 AM

I'M RICH! I'M RICH!!!!!!!!!!!!!!!!!!!!!!!!!

I have owned Duke Energy for several years and happened to look at the stock price today. What is this? The price closed yesterday at $23.28. Today the stock is up $45.64 - selling for $68.89 / share!!!!! Woo Hoo - I'm rich!!!!

Then I start looking - WHY? Progress merged with them - that wouldn't cause a price jump. Then I finally see down in the news - they did a reverse stock split - 1 for 3. So every 3 shares I owned is now only 1 share today.

So I can't retire yet - darn it!!

Michael W. Smith · #**273** 07/03/12, 10:41 AM

Quote:

Originally Posted by clovis

What are the pitfalls and risks of MLP's?

Clovis, Just google "risks of MLPs". That should help you know the risks. As for advice - I don't know anything about them, so don't have any advice - other than read up on them BEFORE you invest anything so you know what you are getting into.

clovis · #**274** 07/03/12, 10:38 PM

Quote:

Originally Posted by Michael W. Smith

I'M RICH! I'M RICH!!!!!!!!!!!!!!!!!!!!!!!!!

I have owned Duke Energy for several years and happened to look at the stock price today. What is this? The price closed yesterday at $23.28. Today the stock is up $45.64 - selling for $68.89 / share!!!!! Woo Hoo - I'm rich!!!!

Then I start looking - WHY? Progress merged with them - that wouldn't cause a price jump. Then I finally see down in the news - they did a reverse stock split - 1 for 3. So every 3 shares I owned is now only 1 share today.

So I can't retire yet - darn it!!

Pretty funny, MWS.

I've had DUK on my watch list for quite sometime now, but never took the chance to buy in. I saw DUK was up $45, and quickly realized that the reverse split is what caused the stock to jump so much. I got a kick out of seeing how much the stock soared...

clovis · #**275** 07/03/12, 10:39 PM

Quote:

Originally Posted by Michael W. Smith

Clovis, Just google "risks of MLPs". That should help you know the risks. As for advice - I don't know anything about them, so don't have any advice - other than read up on them BEFORE you invest anything so you know what you are getting into.

Good idea...I'll do that. Just thought I would ask here first.

clovis · #**276** 07/07/12, 11:49 AM

I've done some research on MLP's.

I understand that MLP's issue a tax form called a K-1, (like a W-2) and if I understand correctly, you have to pay both Fed and state taxes on those earnings. If the MLP that you own has operations in 5 states, you have to pay state tax reported on the K-1 in those 5 states.

I need to do some more research. The yield is great on MLP's, but I need to learn a little more at this time.

clovis · #**277** 07/07/12, 11:52 AM

I also stumbled across GAT this week.

Super nice yield about 7-8%.

I understand this stock is called an exchange traded debt, whereas the corporate debt is issued as a stock, and not a bond. I'm not totally sure that I can even buy this ETD...it might be a closed fund, even though it is traded on the NYSE.

I have so much to learn, but I am enjoying it.

Anyone know anything about GAT, or ETD's?

willow_girl · #**278** 07/07/12, 08:30 PM

Quote:

Originally Posted by clovis

I've done some research on MLP's.

I understand that MLP's issue a tax form called a K-1, (like a W-2) and if I understand correctly, you have to pay both Fed and state taxes on those earnings. If the MLP that you own has operations in 5 states, you have to pay state tax reported on the K-1 in those 5 states.

I need to do some more research. The yield is great on MLP's, but I need to learn a little more at this time.

I asked DH about this because I remembered him moaning about K-1s when he was a tax preparer. LOL

He said they're kind of a bear to fill out at tax time... if you do your own taxes, he recommended using tax preparation software to help you.

Also, he recommended not filing early, as K-1 paperwork usually arrives later than other tax statements -- sometimes as late as March or even early April. So if you file early, before you receive the paperwork, you'll have to amend your return later. "Wait 'til it comes in the mail," was his advice.

clovis · #**279** 07/09/12, 07:18 AM

Willow,

Thank you!!!! That is helpful advice!!!!! I think I am going to steer clear of MLP's as a long term buy and hold for now, at least until I can understand them a little better, and the tax consequences that come with them.

Yes, I do my own taxes, and the last thing I need is something else to file, even thought the IRS will kindly send you a letter telling you of any mistakes you made on your 1040.

willow_girl · #**280** 07/10/12, 10:42 PM

You're welcome!

He's gonna kill me for buying and selling FUN ... 3x ... it's a limited partnership ... lots of paperwork at tax time!

Halfway · #**281** 07/11/12, 10:37 AM

Check out the big wedge forming on GD. Usually an easy trade once it breaks out. The dividend is nice as well....as long as we get the tax break that is.

clovis · #**282** 07/11/12, 09:19 PM

Nice to see you posting, Halfway.

I'll check out GD...thanks for the tip.

Halfway · #**283** 07/14/12, 06:12 PM

Thanks Clovis.

And a BIG thank you for turning me on to the Invesco Bond ETFs (OIB etc.). I believe that was you.

Nice getting 5-7% over the past several months while seeing the price continue to rise as well. It will be a shame if they let the dividend tax break expire. There are many more than the "rich" who count on dividends as income and the money used for the investments has already been taxed a couple times.

Getting penalized for investing in America's economy is unwise.

Thanks again!

willow_girl · #**284** 07/14/12, 10:48 PM

Here is a nice little stock for your consideration: POL.

Closed Friday at $14.65. Pays a modest (1.37%) dividend. Analysts seem to like it.

I'm taking a close look at chemical companies that use the byproducts of natural gas in their manufacturing. Seems like their input costs ought to be pretty cheap right now.

Full disclosure: I am long (well, as long as I ever get

) on POL.

clovis · #**285** 07/15/12, 12:19 AM

Quote:

Originally Posted by Halfway

Thanks Clovis.

And a BIG thank you for turning me on to the Invesco Bond ETFs (OIB etc.). I believe that was you.

Nice getting 5-7% over the past several months while seeing the price continue to rise as well. It will be a shame if they let the dividend tax break expire. There are many more than the "rich" who count on dividends as income and the money used for the investments has already been taxed a couple times.

Getting penalized for investing in America's economy is unwise.

Thanks again!

Sorry to say...I don't think I suggested the ETF's, but as long as you are making money, I'll take the credit.

On the dividend tax: The way I understand it is that only the folks making over $240,000 a year will lose that tax break. Am I wrong about this?

I am just shy of that type of income...no wait...that was a dream...LOL.

I wouldn't know what I would do with $240,000 a year...no, wait again. I think I could figure out how to spend it. A house in Montana, and an all original '55 Chevy would be a great start.

willow_girl · #**286** 07/15/12, 07:30 AM

You are smarter than me, Clove! I would spend it all taking care of more worn-out dairy cows.

willow_girl · #**287** 07/16/12, 09:29 PM

OK I lied! I didn't go long on POL; I dumped it when it made $126. ($106 net.)

It came back down after sold it, though, and ended up just 3 cents over its starting point. So I'm not sorry I took the money and ran ...

Nice little stock though. I'll be keeping an eye on it, prolly buy it back on a dip ...

clovis · #**288** 07/16/12, 10:13 PM

Nice work, WG!!!!

willow_girl · #**289** 07/16/12, 10:27 PM

Thanks Clove!

Halfway · #**290** 07/17/12, 10:27 PM

Quote:

Originally Posted by clovis

Sorry to say...I don't think I suggested the ETF's, but as long as you are making money, I'll take the credit.

On the dividend tax: The way I understand it is that only the folks making over $240,000 a year will lose that tax break. Am I wrong about this?

I am just shy of that type of income...no wait...that was a dream...LOL.

I wouldn't know what I would do with $240,000 a year...no, wait again. I think I could figure out how to spend it. A house in Montana, and an all original '55 Chevy would be a great start.

As of now, it is around 240k, but we will see what the finished product looks like. I can see them going after capital gains (home sales) and dividends for under 250k in the very near future. I don't have to worry about the 240k income any time soon (LOL), but I do have a house in Montana.

Marshloft · #**291** 07/17/12, 10:54 PM

Anyone have any luck today???
I watched a stock on my list go up a dollar "wwww" today but couldn't do anything as I was long on a stock "tngo" thats been going sideways for bout a week. I was up 300 and stayed long because of a confirmed uptrend and then it went down to where I was down 100. So today I sold for just enough profit to pay the piper.
I am used to being able to sell a stock and get right back in on a stock that I like better. But now I have to wait three days for everything to clear. Didn't used to be that way,, kinda sucks actually.
At least I am back to cash again...
GH

xCSx · #**292** 07/18/12, 10:01 AM

Went mostly to cash over the last few weeks, up over 9% on the year.... waiting

clovis · #**293** 07/18/12, 11:01 AM

I've got a little cash on the sidelines too.

Marshloft · #**294** 07/18/12, 09:42 PM

Well crap,, I mentioned that got tired of watching "TNGO" go sideways yesterday and sold. Today it goes up 1.50. I had 200 shares.. Dang. My timing sucks,, obviously.
GH

willow_girl · #**295** 07/18/12, 10:39 PM

Ohhh man!

I feel for ya, buddy.

Halfway · #**296** 07/20/12, 07:32 PM

'Bout time for PG to get into the game again and we are below book. Not a bad place to start a long term position or add to an existing. The div is decent as well.

Loving the oil patch here again as well.

Waiting Falcon · #**297** 07/21/12, 09:31 AM

Has anyone bought royalties of any type whether they be precious metal, movies, etc?
If so were they worth while? I am getting mixed reviews.

Halfway · #**298** 07/23/12, 11:13 AM

Great morning for PG and CVX.

Also added some CAG and EPD to catch their dividends in the next few days as well. These are all long term investments.

I post because they are solid and trading at somewhat a discount. Especially on days when we see the broad markets sell.

clovis · #**299** 07/24/12, 09:30 PM

Another drop for the Dow today.

Lots of stocks are discount priced. We should see a nice bounce...sometime.

I like LLY, which got hammered today. I'd like to pick up a few more shares since it was down $1.85, but I'm not sure what to do. I'll be keeping a keen on Marketwatch.com to see what the futures and Asian markets do overnight.

Anyone else getting into the market, or have trades they would like to make?

willow_girl · #**300** 07/24/12, 10:05 PM

I bought back my POL and FUN today. FUN finished the day $48 up for me, while POL was -$9, but since the trading fee is $9.99 I guess you could say it was a wash!

Hoping for an uptick tomorrow!