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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (51496)	5/7/2013 6:52:54 PM
From: E_K_S	2 Recommendations Read Replies (2) \| Respond to of 78774

So where are you parking money? I have no interest chasing yield and am satisfied w/ 4% or 5% and low probability of loss on my principle. Also, there must be good liquidity. If it is a fund, expense ratios must be very low less than 0.5%. My holding period is from 1 month to 18 months. I mentioned one fund GASFX I like but it's a low dividend payer 2.4%. I chose this fund for it's sector & diversification: natural gas distribution and transmission operations. I expect revenues to increase and their dividend to increase accordingly. However, you must hold the fund for a minimum of 90 days or they charge an early withdrawal penalty. Their expense ration is quite low. I have over 40 MLPs that I follow and one possible "value" play that's generates a good yield is ONEOK Partners, L.P. (OKS). It's been mentioned a few times on this thread but now it's a bit lower from my first buy and they yield 5.6%. However, none of these ideas really meet the higher yield w/ safety place to park money. I do not want and BDCs and/or Financial REITs either. FWIW, I decided to hold onto my SVU 8.125% 2016 Bonds I bought at $860.00/$1000 bond in 7/2012 even though I was presented w/ a Dutch offer price of $1100/bond (and $30.00/bond premium if I tender early). I decided to keep the 3 years and the 8.125% yield w/ a guarantee I will get paid at PAR $1,000/bond in 3/2016. The offer made by the Private Equity partner that owns a large chunk of SVU represents only 10% of the outstanding issue. I suspect another Dutch tender offer will be made next year for more of these bonds as the company generates quite a bit of cash flow. Based on the current price of this Bond the yield to maturity is 3.75%, well below the 13% I got when I originally purchased my discounted bonds. So, any other low risk "value" ideas that generate 4%-5% income w/ limited downside? I have an order in for Ag Growth International Inc. (AFN.TO) below $30.00/share. This is not very liquid but their distribution is paid monthly and yields 7% but it is in Canadian $'s. There is a 15% Canadian tax withholding too. So, my current strategy is to have several pots where I park funds with different maturities and distribution periods. I even have negative yield generators when one looks at the 0.60% I now receive in the credit union. I am even using cash to pay off all mortgage debt which is quite small but do keep a Home Equity Line Of Credit open w/ interest only payments charged at 2.25%. I was surprised to find out that broker Margin Rates were as high as 9% but none of my Brokers would allow me to lend money to them at even 1/2 that rate. EKS