The Bitcoin Rally Up 132% Year-to-date. Why?

With the launch of several new products, Bitcoin future contacts hit a new high in future volumes.  This is the same Bitcoin that in November of 2018 had us asking Where is the Bitcoin Bottom?

Even though on a technical basis it appeared ready for a bounce, the news for Bitcoin has just been getting better as more and more large American companies become involved.

Here are some reasons why Bitcoin is having a great 2019:

Litecoin and XRP Lists on Germany’s 2nd Biggest Stock Exchange

Börse Stuttgart, Germany’s second biggest stock exchange and the 9th largest in Europe, has sanctioned two new ETNs (Exchange-traded Notes)- Litecoin (LTC) and XRP. According to a company press release, this is the first kind of announcement in Germany.

Börse Stuttgart has declared that like ETFs, ETNs are also strictly regulated, a transparent and protected instrument that can be used by an investor to invest in different assets or they can buy or sell ETNs based on the cryptocurrencies Litecoin and Ripple.

Produce Over 9.5% YTM with AK Steel, Bonds Maturing October 2025

This week, Durig Capital looks at one of the leading producers of steel products in the United States. AK Steel has been working diligently over the past few years to increase its competitiveness in the marketplace. Its design of its own ultra high-strength steel (UHSS) has produced excitement amongst the company’s automotive customer base. In addition, AK Steel’s acquisition of Precision Partners a few years ago has been very lucrative as that acquisition has now resulted in approximately $50 million in additional future revenues. The company recently released its first quarter results for 2019. Amongst some of the highlights:

Find Over 6.7% YTM with Tenneco Inc., Bonds Mature December 2024

This week, Durig Capital takes a look at an industrial designer, manufacturer and marketer of aftermarket parts for light vehicles, commercial trucks and other industrial uses. Tenneco Inc. recently posted a fantastic fourth quarter and full year results in large part due to its recent acquisition of Federal-Mogul. Highlights include:

Later this year, Tenneco will create two separate, market leading companies from its acquisition of Federal-Mogul.  Federal-Mogul brings strong brands, products and capabilities that are complementary to Tenneco’s portfolio. Creating two new product focused companies with stronger product portfolios will allow each of them to move faster in executing on their specific growth priorities.

A Golden Opportunity with Monthly Paying “Gold Notes” from Gran Colombia Gold, Over 8% YTM, Mature April 2024

This week, Durig Capital reviews the largest underground gold and silver producer in Colombia.  Gran Colombia Gold has staged an amazing transformation from just a short three years ago, when Durig Capital began to carefully follow this issuer.  After completing a well-timed and skillfully crafted restructure of its balance sheet early in 2018, the company has consistently continued to smash its production targets, and has once again impressed us with its most recent results for the fourth quarter and full-year 2018.

Updated Review of Entrec Corporation, 16% YTM, Maturing June of 2021

This week, Durig Capital reviews a Canadian heavy haul transportation and crane company. Entrec Corporation provides heavy haul transportation and crane solutions to the oil and gas, construction and power generation industries, among others.  Entrec’s most recent results for both its fourth quarter and full year 2018 showcase healthy growth in the company’s U.S. operations. And given the volatility in oil and gas late last year, the company’s results are even more impressive.

Pick Up 6.6% YTM with Quad Graphics, Bonds Maturing May 2022

This week, Durig Capital reviews a traditional print-based marketing company that is undergoing a transformation. Quad Graphics (recently rebranded to just Quad) is in the midst of implementing its Quad Transformation 3.0 plan. This plan is helping to add core marketing expertise to the company’s service offerings. This has been accomplished mainly through acquisitions. The company’s most recent financial results show some of the progress on this plan.

Get Connected with Frontier Communications, Nearly 23% YTM, Bonds Mature April 2022

This week, Durig Capital takes a look at a company that provides communications services for consumers and businesses across the U.S. Frontier Communications has spent most of 2018 making progress on its transformation initiatives that are designed to reduce costs, increase profitability and improve the balance sheet. The company recently released its fourth quarter and full year results for 2018. The company is showing progress on its initiatives.

Frontier Communications’ April 2022 bonds are currently trading at a significant discount, giving them an outstanding yield-to-maturity of about 23%. These bonds provide investors with an excellent opportunity for diversification into the essential service of internet connection. Considering Frontier’s solid free cash flow and excellent interest coverage, these 2022 bonds make an ideal addition to Durig Capital’s Fixed Income 2 (FX2) High Yield Managed Income Portfolio, which historically, has done well in a rising interest rate environment, shown below.

Pull Nearly 12% YTM with CSI Compressco, Bonds Mature August 2022

This week, Durig Capital takes a look at a company that provides compressions services and equipment for the oil and gas industry. CSI Compressco (CCLP) has had multiple successive quarters where the company has increased revenues and its latest quarter did not disappoint. Included with this increase were several other notable achievements.

With the continued demand for LNG and the current and planned LNG terminals in the U.S. and Canada, CSI Compressco looks to be perfectly positioned to take advantage of this demand. In light of the company’s solid performance in 2018, the company’s short-term bonds maturing 2022 are an ideal candidate for additional weighting in Durig Capital’s Fixed Income 2 (FX2) High Yield Managed Income Portfolio, shown below.

Fed’s Jay Powell, Interest Rates, and Trump

Earn Over 23.5% YTM with Community Health Systems, Bonds Mature February 2022

This week’s bond review focuses on one of the nation’s largest publicly traded hospital companies. Community Health Systems, Inc. (NYSE: CYH). CYH has spent the past few years divesting hospitals in an effort to reshape its portfolio towards urban and suburban markets. The company continues to make that shift and has now added urgent care centers in some of those markets to help drive additional patients to its hospitals. Its fourth quarter and full-year 2018 results look to be an indicator that the transformation is gaining a foothold.

Harvest Nearly 15% YTM with Pyxus International, Formerly Alliance One, Bonds Maturing July 2021

This week, Durig Capital looks at a longtime company that has adopted a new name to reflect its new direction. Pyxus International, formerly Alliance One, is well into its “One Tomorrow” transformation plan, where it has added new products to its product base of leaf tobacco. The company has entered into producing e-liquids, cannabis and cannabis related products.

GE: General Electric Warns Again

Bring Home 9.0% YTM with Conn’s Inc., Bonds Maturing July 2022

This week’s bond review delves into the retail sector with a specialty retailer of durable consumer goods who also offers its customers financing on their purchases. Conn’s Inc., which is headquartered in Texas, has a market presence that stretches across the southern United States. Conn’s set some records in its most recent quarterly results (third quarter for its fiscal year 2019).

  • Record third quarter retail gross margin of 41.2%
  • Record quarterly credit segment revenues of $89.9 million.
  • For the first nine months of fiscal year 2019, the company registered its second highest nine month operating income ever
  • Excellent interest coverage of 2.4x.

Do You Have an IRS Audit Coming?

Find Over 8.5% YTM with Owens & Minor, Bonds Mature September 2021

This week, Durig Capital looks to the healthcare industry, where a medical supply logistics provider has made some key acquisitions to broaden its revenue sources. Over the past 18 months, Owens & Minor has acquired Byram Healthcare, a direct to patient medical supply distributor, along with Halyard’s surgical and infection prevention (S&IP) business.  Combined, these two acquisitions are slated to add $1.45 billion in annual revenues for Owens & Minor. The company’s last reported quarterly results (third quarter 2018) show revenue growth coming through these most recent additions.

China, US Trade and the Economic Effects

An Introduction to Durig Capital’s Dogs of the Dow Portfolio Strategy

 This week, Durig Capital reviews its own version on a time-proven investment strategy. The “Dogs of the Dow” investment strategy was introduced by Michael B. Higgins in the early 1990’s as a simple way for investors to design a portfolio around the “dogs” of the broader Dow index, and re-balance it annually. Durig Capital has created its own version on this investment strategy which has historically resulted in a less volatile portfolio and has produced excellent returns since its inception in June 2017.

  • Since its inception (June 6, 2017) Durig’s “Dogs of the DOW” Portfolio has generated a total return of 14.26% (as of January 22, 2019). Over the same time period, the greater Dow index generated a return of 11.37%. So, Durig’s “Dogs of the DOW” portfolio returned 25% more than the index.

  • Most notably, during the selloff in the fourth quarter of 2018, Durig’s portfolio was down -5.23% while the greater Dow index was down -11.30%. These figures are as of January 22, 2019.

  • Year-to-date in 2019, the Durig portfolio was up 1.56%, while the greater Dow index was up 4.71% (as of January 22, 2019). This statistic, along with the results from fourth quarter 2018 illustrate the portfolio’s reduced volatility.

Google Quarterly Businesses Breakdown

Find Nearly 9% YTM with Magnachip Semiconductor, Bonds Mature July 2021

This week, Durig Capital ventures to the technology sector to review an issuer involved in the design and manufacture of semiconductors. Magnachip Semiconductor (NYSE:MX) has been around for over 30 years and is the largest independent supplier of OLED display drivers to panel makers for smartphones. The company’s latest reported quarterly results (three months ending September 30, 2018) were excellent.

 

  • Adjusted EBITDA increased 13% year-over-year.

  • Gross profits were up 10.8% over the prior year period.

  • Operating income increased by 17.9% over Q3 2017.

  • Revenues were up 16.6% year-over-year and were at the highest levels since Q4 2012.

  • Interest coverage over 3x for the third quarter.

Apple’s Quarterly Businesses Breakdown

Are Oil Prices About to Gush?

New SALT Taxes are Going to be Shocking to Many

Will Bitcoin Be Valued at Zero?

What Countries are Causing the Global Economic Slowdown?

Real Estate Ended 2018 in a Tailspin; So What is the Forecast for 2019?

Load Up On Over 9% YTM from Teekay Corporation, Bonds Mature January 2020

This week, Durig Capital takes a look at a leading marine transportation company. Teekay Corporation provides marine transportation, storage, and vessel leasing for the oil and natural gas industry. The company’s third quarter saw increases in its subsidiaries revenues over second quarter. Here are some highlights from its third quarter results.

 

  • Teekay Tankers nearly doubled its quarterly revenues from the prior year period.

  • Teekay Corporation recorded adjusted cash flow from vessel operations of $19.8 million as compared to $1.2 million a year earlier.

  • Teekay LNG revenues increased to $123.3 million as compared to $104.3 million a year earlier.

Once Great Sears and Kmart Survive…for Another Day.

Let the Streaming Wars Begin

Soak Up 8% YTM from SolarCity/Tesla, Bonds Mature 2020

This week, Durig Capital reviews a bond from an issuer that was snapped up a few years ago by one of the most enigmatic figures in corporate America. In late 2016, SolarCity was acquired by Elon Musk’s company, Tesla. The acquisition made sense- combine the maker of electric cars and energy storage with a company that produces solar panels that produce energy (seemingly to ultimately charge Tesla’s vehicles). Tesla has since integrated SolarCity’s products into the Tesla portfolio. Tesla’s most recent reported quarter (Q3 2018) was truly historical.

 

  • Free cash flow of $881 million.

  • Operating income of $417 million

  • Cash flow from operations of $1.4 billion.

  • Interest coverage in Q3 of 2.4x.

PG&E the 10th Largest Gas & Electric Utility files Chapter 11 Backruptcy

Dow Jones, S&P 500, and Oil Out of the Correction Phase with Nasdaq Still in Bear Market and Real Estate Unknown

Dig Into Nearly 35% YTM with Legacy Reserves, Bonds Mature December 2020

This week, Durig Capital takes an updated look at an oil and gas producer whose focus is primarily in the Permian Basin in Texas. Legacy Reserves has recently made the successful transition from master limited partnership to C-corporation. In addition, the company posted another excellent quarter for Q3.

 

  • Production increased by 31% (year-over-year).

  • Revenue increase of 36% over the prior year period.

  • Adjusted EBITDA increased by 33% as compared to Q3 2017.

Large Leading Companies Announce Major Profit Shortfall with Some Surprising Growth

US and China Feds Help Change the Market Outlook

Apple Update: The Good, the Bad, and the Ugly

2019 Stock Market Bulls vs Bears Predictions

Gold Rising as Equities and Real Estate Fall; Which Will Prevail?

Pick Up Over 40% YTM with EP Energy, Bonds Mature June 2023

This week, Durig Capital takes another look at EP Energy, an oil and gas producer who has assets in the Eagle Ford, Permian and its newly renamed Northeastern Utah (NEU) asset. The company just posted exceptional results for its most recent quarterly results (three months ending September 30, 2018). Some of the highlights include:

 

  • Adjusted EBITDAX increased by 35%

  • Net cash provided by operating activities increased by 28%

  • Interest coverage of 1.9x

World Markets: The Good, Bad and Ugly

Facebook (FB) Multiple and Repeating Ethical Issues Are Not a Sign of a Well Run Company or Stock!