Update on REML and BPMP Redemtions
Hey Subscriber,
Quick update on $REML (if you still own--we sold it from the Ultra Income portfolio in July) and $BPMP redemption.
Credit Suisse is redeeming REML shares by month-end--sell them today if you still hold them.
BP upped their offer for the rest of the BPMP MLP units today...SELL THEM today on this 12% spike and take your 50%+ profits June 9 this year.
$SHOP hit our $1300 sell stop yesterday and the position closed.
Where to roll your Ultra Income and $SHOP cash?
I'd recommend $SBLK Star Bulk tankers with a $5 annual dividend ($1.25 per quarter) is an absolute steal here under $20-$21! The chart says it's bottomed and the bullish slow stochastic indicator has turned positive (see bottom of the chart).
Why? Because SBLK $5 dividend per year/25% ish yield is basically a lock for the next year (we get our first $1.25 dividend paid this week on the 22nd for those who bought shares before ex-dividend on Dec 8) because the additional 400k barrels of oil per day out of OPEC+ tightens demand for SBLK bulk tankers (which are already @ 78% leased for 2022) and the $5 is just 78% of SBLK free cash flow--there is room for higher dividend rate.
At $20 ish cost basis, in four years (or less with a higher dividend payout) your cost basis in $SBLK is $ZERO which reminds of our old friend Newtek (NEWT) where our $4.50 cost basis (pre reverse) was taken to zero cost basis by 2018 by its rich dividend payout.
Note: NEWT is now converting to a Bank Holding Company...if you STILL HOLD shares from 2014 you would still be crazy to sell them ok? It has pulled back on the Bank Holding company news--starting to look attractive again at a 15% yield.
USOI Update: We have enjoyed about .52 cents of dividends from our $USOI position we entered at $5.15 on June 9th--beats working! The short-term outlook for oil prices is soft during this global Omicron wave--LOWERING $USOI Buy Under to $4.70 on this pullback...$4.50-$4.65 has consistently been a strong bottom for the $USOI price range.
Housekeeping: This is a short week--no markets open on Friday.
The Transformity Research and Transformity Wealth Management office will be closed Dec 27-31--lots of year-end stuff that has to get finished. I will be in our All-Access Discord Trading room for most of the time office is closed...question reply times may very well be slower than average. IF you want access to Tobin Smith or others in real-time, click here/scroll down the subscriptions page and join our All-Access service and get ALL your questions answered in real-time via convenient text or Discord.
New Reality: The new global Omicron wave is going at ADD A LOT of volatility until the wave peaks and Covid-19 finally becomes an ENDEMIC annual virus bug like the annual flu/influenza endemics.
PS: Our Ultra Income MLPs are now fully hedged with put options on $AMZA and FAAAMGTC hedged with SQQQ calls--check the All-Access Discord room for option hedging details
We are in the home stretch for 2021--another year of beating the SP500 (including dividends) by a mile and another year for navigating the Fed and Covid-19 pandemic. Treat yourself VERY WELL this holiday--you deserve it!