sbalsam
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Posts posted by sbalsam
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Anybody have a sense of the timing on acceptance or rejection of an application?
Steve
I applied this afternoon and received the following reply by email shortly thereafter along with a copy of my submission:
Your application to Value Investors Club for company PAN ORIENT ENERGY CORP has been received. Due to the volume of Applications, it usually takes us a few weeks to review applications thoroughly.
I will let people know the timing of the response. Personally, I decided on applying to VIC over posting the idea on seeking alpha as I would value the chance to see private member comments and recent ideas. But, with the very low acceptance rate, I was hoping for a quick response so that I can post the idea elsewhere while it is still timely if it is not accepted.
Steve
I received a response on my application on July 1 - six days after my application.
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Anybody have a sense of the timing on acceptance or rejection of an application?
Steve
I applied this afternoon and received the following reply by email shortly thereafter along with a copy of my submission:
Your application to Value Investors Club for company PAN ORIENT ENERGY CORP has been received. Due to the volume of Applications, it usually takes us a few weeks to review applications thoroughly.
I will let people know the timing of the response. Personally, I decided on applying to VIC over posting the idea on seeking alpha as I would value the chance to see private member comments and recent ideas. But, with the very low acceptance rate, I was hoping for a quick response so that I can post the idea elsewhere while it is still timely if it is not accepted.
Steve
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Anybody have a sense of the timing on acceptance or rejection of an application?
Steve
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I own some WMB, which I consider undervalued, despite the noise around bankruptcies impacting their G&P operations. I like EPD, but I don’t like dealing with MLP, unless I absolutely have to and I am willing to make a larger and long term commitment. For me PSX is the most interesting as their midstream and chemical business becomes a larger part of their cash stream, yet it still is largely valued as a refiner. it has the Buffet seal of approval (despite the fact that he exited) and their share buybacks truly identify it as a cannibal. In the CC, they mentioned that thy have ~900M annual EBITDA thwt could be dropped down into their MLP. Do this at 10x EBITDA while the stock trades at 7x and we are talking about serious value accreditation.
Why don't you like MLPs? Is it just the tax implications or are there other issues?
I prefer c-Corp over MLP mostly due to ease of dealing with them (no K-1). Energy and even midstream is cyclical and volatile, so one can benefit from buying and selling at the “right time “. MLP are a pain in the butt when dealing with partial sales, distribution recapture etc. Also, 60% + of my assets are in tax deferred accounts, which are no-go for MLP (UBTI concern).
I would consider an MLP (and indeed own one) for a long term holding only, preferably something I never intend to sell. I think only EPD is really of high enough quality and even there are rumbling about converting to a c-Corp.
I know you were focused on midstream and not the royalty sector but since you are talking MLPs, I wanted to point out that DMLP has structured its business so that it can be owned by a non-taxable account such as an IRA. DMLP is a partnership but its income is not considered UBTI (it is UBTI that causes a problem for non-taxable investors). It avoids UBTI because (i) it has no debt and (ii) it has structured its mineral interests as royalties so that it is not considered to be actively operating a business. DMLP commits to continue to avoid UBTI.
Steve
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Cardboard,
I don't think anything has changed regarding Cline Mining (at least not for the worse).
What has probably changed in certain investors' minds is the concept of buying Cline for free through Marret Resources (setting aside deal closure risks) versus at a discount with MHY (and MMF). At least that is how I was thinking about it yesterday. I happen to own small amounts of both MHY and MMF, but yesterday I was buying Marret Resources.
Steve
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From the Marret Resources Q3 MD&A:
Cline Mining Update
Met coal prices remain well supported, but have drifted below the $200 level and settled around $175/tonne.
China’s steel industry continues to be robust, but information on whether they will continue to restrict the
number of production days on Chinese met coal mines is vague. The overall situation in China remains
positive for the value of the New Elk mine. Discussions with potential Asian purchasers, while active, have not
progressed to the point where a sale is imminent. The process is continuing without progress on setbacks at
this point.
The NAV remains at $.90 with $.45 attributable to Cline and $.45 principally to cash and other liquid securities.
Steve
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Perhaps final distribution coming for MAR and MHY.un. Marret Resource Corp portfolio being cleaned up with only a few HY bond positions left now. Met coal has leveled out at a decent price after its meteoric rise from Summer 2016. If ever there was a time to sell Cline this should be it. Marret has steadfastly maintained the NAV's at their funds with substantial value realization from Cline - time to put up or shut up in 2017 I would think.
http://marret.ca/pdf/MAR-PH-1612.pdf
Marrett Resource Q4 MD&A
Cline Mining Update
Met coal prices were very volatile in Q4 with the peak above $300/tonne and but prices seem to have stabilized
in the $170-175 area. This is a very attractive level for the long term value creation from Cline’s assets. The
Manager is exploring several avenues to either liquidate this asset or to recapitalize Cline and move the mine
back into production.
I notice that you have not mentioned Marret Multi-Strategy Income Fund (MMF). This fund, while much smaller with a NAV of $1.8M attributable to the listed Class A shares, appears to own the same Cline Mining securities as MHY and MAR and trade at a discount to stated NAV approximately in line with MHY. (Though its expenses are much larger as a percentage of assets - due to the small size - at about 5%). Am I missing something or is this a basically equivalent investment to MHY?
Steve
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If I remember correctly (it's been nearly 10 years since I was last at the meeting), Mark Leonard doesn't wear a suit either.
Steve
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I am writing this more than 5 years after the original posting. I came across the posting with a google search re: buying OTC securities in a TFSA so others may as well and I wanted to clarify.
Bonechip 1's rule regarding de-listed securities only applies to Canadian companies that are de-listed. A U.S. company previously listed on the NYSE, for example, would not be eligible for purchase in a TFSA and would result in substantial penalties.
Steve
Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
in General Discussion
Posted
Bskptkl - I have the going-forward yield for the Ds as 6.8% (at a $15.75 price) based on the current t-bill rate. Does that match your assessment?
Steve