When You Are Done Puking...
The bad news: After years of creative accounting and "managed financial reporting", Markets are in free fall. John Deere has dropped from the 90's to 36 today, no doubt because food will no longer be in fashion in what lies ahead. It all seems TBTBT ("to bad to be true"), and yet, as Galileo said after his conviction, "and yet, it moves". He was talking about the earth around the sun; in this case we're talking about the mouse clicks of hedge fund managers who are liquidating to raise cash to pay the guy who fueled up their waiting jets.
The good news: yields are absurdly rich, to the point that even TV stock guru Jim Cramer is pushing The Yield Hoe method of screening the market one of the few safe methods for finding better places to park new cash. These high yielding securities are like a orchard of ripe apples. The keys are low debt, solid cash flow, in a line of business that's not going away anytime soon.
Seth Glickenhaus, the grand master of money management was quoted in the Wall Street Journal today as a bear on business by a bull on a one of the stocks we've followed for years-- Eagle Bulk Shipping, which has dropped to a point where it's priced for the end of times, with a 17%+ yield. Seth's other picks:
Enterprise Products Partners, Energy Transfer Partners and Boardwalk Pipeline Partners, and shipping companies Navios Maritime Holdings, which all yield greater than 7.90%.
ETP and EPD are both in the energy sector, and yield a Navios has the absurdly low (encouraging) PEG ratio of .17, which makes it very historically cheap for the amount of growth it offers. It's p/e is less than 2, and it operates in a lucrative, and vital sector if you believe that the emerging markets to the east will not undergo so much demand destruction that they will no longer need any dry bulk commodities, such as coal, iron or grains.
Now hear this, and recall, "Everything will perish under the sky, and music alone shall remain and never shall die":
The good news: yields are absurdly rich, to the point that even TV stock guru Jim Cramer is pushing The Yield Hoe method of screening the market one of the few safe methods for finding better places to park new cash. These high yielding securities are like a orchard of ripe apples. The keys are low debt, solid cash flow, in a line of business that's not going away anytime soon.
Seth Glickenhaus, the grand master of money management was quoted in the Wall Street Journal today as a bear on business by a bull on a one of the stocks we've followed for years-- Eagle Bulk Shipping, which has dropped to a point where it's priced for the end of times, with a 17%+ yield. Seth's other picks:
Enterprise Products Partners, Energy Transfer Partners and Boardwalk Pipeline Partners, and shipping companies Navios Maritime Holdings, which all yield greater than 7.90%.
ETP and EPD are both in the energy sector, and yield a Navios has the absurdly low (encouraging) PEG ratio of .17, which makes it very historically cheap for the amount of growth it offers. It's p/e is less than 2, and it operates in a lucrative, and vital sector if you believe that the emerging markets to the east will not undergo so much demand destruction that they will no longer need any dry bulk commodities, such as coal, iron or grains.
Now hear this, and recall, "Everything will perish under the sky, and music alone shall remain and never shall die":
Labels: aluminum china basic materials High Yield, bailout, credit markets, EGLE Eagle Bulk Shipping, energy transfer partners, Enterprise products partners, NM bulk shipping
posted by TheYieldHoe at
8:46 AM
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