Category: PrefLetter

PrefLetter

Sympatico Spam Filters Out of Control

Assiduous Reader PB informs me:

Totally irrelevant, but your reply got caught in the spam filter that the Microsoft mail servers curse Bell Sympatico users with. It has become wildly over-aggressive of late, and there is no way to turn the !@#$% thing off. I have to visit their webmail site periodically and retrieve missing messages before they get flushed.

That was a normal reply to his eMail, sent without attachments.

Sympatico users are urged to contact the company and complain; this has highly annoying repercussions on the distribution of PrefLetter.

Additionally, subscribers should add the two eMail addresses used for distribution, jiHymas@himivest.com and jiHymas@prefLetter.com to their Sympatico on-line list of “Trusted Senders”.

Update: Assiduous Reader NS comments:

I think you can turn the sympatico email filter off for a particular email address / domain. It’s just not easy for non-tech types.

1. They’ve got to login to webmail.
2. Select “Options”, then “More options”
3. Select “safe and blocked senders”
4. Select “safe senders”
5. Add the email address you use to send out the letters to the safe senders list.

They may also have a separate spam filter on their local machine (i.e. via the email reader / antivirus) that also has to be trained properly.

The anti-spam stuff is frustrating for legit businesses. 🙁

Yes, it is frustrating for legit businesses – especially since the spam problem is so easy to fix: Sending an eMail should cost a penny. Receiving an eMail should earn a penny. ISPs should neither pay nor collect amounts of less than $10/month.

Normal users will never notice this, since they will rarely send 1,000 more eMails than they receive. Malware can be guarded against by setting an account limit: requre specific authorization once X emails have been sent. X is set separately by the client (so they don’t have to pay a huge amount by surprise) and by the ISP (as part of their credit policy). The counters get reset to zero monthly. eMails sent in excess of either limit get bounced back with a message.

Is Very Nice ISP transmitting 10-million eMails from Nigerian Spam ISP Inc.? They’ll bill NSISP $100,000 and pay it when the eMails are forwarded along the Internet backbone. NSISP didn’t pay? Well, golly, VNISP has gone bankrupt, and good riddance.

There were thoughts of something along these lines at one point, but the boohoohoo brigade insisted that everything about the Internet should be free. HIPPIES RUINED THE INTERNET!

Update: Assiduous Reader PB comes back with:

Thanks for the tip. It turns out that marking mail as “not junk” in the webmail spam folder automatically populates the safe sender list and when I checked, your email address was already in the safe list.

Update, 2010-4-29: Most readers will be sheltered behind ISP, corporate, or home-made spam filters and may have no real idea of just how much spam there is. I have several domains, and all of them forward all eMail to my single eMail account. There’s no filtering, because I have a horror of filtering out a genuine communication from a genuine prospect (note to geeks: yes, I could probably do this better. But I don’t.). In the last week, I have deleted 3,169 spam eMails.

PrefLetter

PrefLetter 2009 Collection Released

The twelve editions of PrefLetter published in 2009 have now been collected and are available for purchase via PrefLetter.com.

The monthly security recommendations are now merely of historical interest, but some may wish to determine PrefLetter’s track record relative to the various indices.

Of more interest will be the monthly appendices:

  • January: Estimation of “Blended Yield”, FixedReset data, FixedReset spreads to PerpetualDiscounts. (all short notes)
  • February: FixedReset data, Estimation of Perceived Yield (short note)
  • March: FixedReset data, Estimation of Perceived Yield, Importance of Current Yield (short note)
  • April: Valuation of SplitShare Capital Units
  • May: FixedReset Relative Valuation, Errata for April appendix
  • June: FixedResets Break Even Rate Shock
  • July: Convexity of PerpetualDiscounts
  • August: Market Spread Risk and FixedResetPremium Preferred Shares
  • September: Preferred Share Benchmarks and Passive Funds
  • October: Market Timing and the Canadian Preferred Share Market
  • November: The Rise of Alternative Trading Systems (includes essay on Pegged Orders)
  • December: Naïve Hedge Funds in the Canadian Preferred Share Market

The price of this collection is $50 + taxes – get yours today! Note that due to its immense size (about 7.5MB), this collection is not eMailed to clients; instead, purchasers are emailed a link/password that enables download of the file. The procedure is:

  • Input eMail address
  • Receive eMail with link to payment screen
  • Select “Collection” and input credit card information (secure server)
  • Receive eMail with download link/password
  • Click link in eMail to download file and save to your hard drive.
PrefLetter

April Edition of PrefLetter Released!

The April, 2010, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

The April edition contains an appendix discussing Preferred Shares and Annuities. There is a review of the previous month and a listing of FixedResets currently trading thrown in.

As previously announced, PrefLetter is now available to residents of Alberta, British Columbia and Manitoba, as well as Ontario and to entities registered with the Quebec Securities Commission.

Until further notice, the “Previous Edition” will refer to the April 2010, issue, while the “Next Edition” will be the May, 2010, issue, scheduled to be prepared as of the close May 14 and eMailed to subscribers prior to market-opening on May 17.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter, being delivered to clients as a large attachment by eMail, sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

PrefLetter

April Edition of PrefLetter Now in Preparation!

The markets have closed and the April edition of PrefLetter is now being prepared.

PrefLetter is the monthly newsletter recommending individual issues of preferred shares to subscribers. There is at least one recommendation from every major type of preferred share with investment-grade constituents. The recommendations are taylored for “buy-and-hold” investors.

The April edition will contain an appendix discussing PerpetualDiscounts and Annuities, and will also contain a short section – really, more of an annotated chart-pack – on recent market turmoil.

Those taking an annual subscription to PrefLetter receive a discount on viewing of my seminars.

PrefLetter is available to residents of Ontario, Alberta, British Columbia and Manitoba as well as Quebec residents registered with their securities commission.

The April issue will be eMailed to clients and available for single-issue purchase with immediate delivery prior to the opening bell on Monday. I will write another post when the new issue has been uploaded to the server … so watch this space carefully if you intend to order “Next Issue” or “Previous Issue”! Until then, the “Next Issue” is the April issue.

PrefLetter

Marginal Tax Rates: BC

An Assiduous Reader of PrefLetter writes in and says:

I believe your Equivalency Factors for taxes (Table 3 in Preletter March) are wrong for low-income earners.

The dividend credit can be applied to other income which results in a negative marginal tax rate on dividends. For example, for BC $30,000, 2009 tax year, this is -14.36% (regular income taxed at 20.06%) so
equivalency is 1.43.

This handy website will give you the marginal rate without capping them at 0% like the E&Y calculator does:

http://taxtips.ca/taxrates/bc.htm

The point is well taken – but unfortunately I do not consider taxtips.ca to be an authoritative source. According to their website:

TaxTips.ca is owned by a small private company located in Cedar, British Columbia. It is prepared by a husband and wife team who are retired from owning and operating a small business, with one being a retired CGA (Certified General Accountant). The goal of the site is to be a reference site for easy to understand tax, financial, and related information.

In order to consider a source authoritative I want to see names. I also want to see that the person making a claim has something at stake in the matter and is pronouncing on a subject on which they are earning a living. I consider it highly important in this wonderful world of looney-tunes in which we live that somebody maing a claim get hurt – either directly in the pocketbook, or (as in the case of academics) in reputation – if they make a mistake. And size helps (although I am realistic enough to recognize that it’s no guarantee): Ernst & Young, for instance, will have many opinionated partners who will jump on any egregious or doubtful claim because E&Y’s reputation is their reputation. While this means that many publicly expressed opinions get diluted to the point of uselessness, it does imply that what they do say has a reasonably good probability of being right.

So, while the Assiduous Reader’s claim has a ring of truth to it, I am – as I always stress – not competent on tax matters and am looking for an authoritative source to substantiate the claim. Any help will be appreciated.

PrefLetter

March Edition of PrefLetter Released!

The March, 2010, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

The March edition contains an appendix discussing the Interest-Equivalency Factor, Tax Effects on FixedReset Premium issues, with a discussion of the odd case of BAM.PR.R thrown in.

As previously announced, PrefLetter is now available to residents of Alberta, British Columbia and Manitoba, as well as Ontario and to entities registered with the Quebec Securities Commission.

Until further notice, the “Previous Edition” will refer to the March 2010, issue, while the “Next Edition” will be the April, 2010, issue, scheduled to be prepared as of the close April 9 and eMailed to subscribers prior to market-opening on April 12.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter, being delivered to clients as a large attachment by eMail, sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

PrefLetter

March PrefLetter Now in Preparation!

The markets have closed and the March edition of PrefLetter is now being prepared.

PrefLetter is the monthly newsletter recommending individual issues of preferred shares to subscribers. There is at least one recommendation from every major type of preferred share with investment-grade constituents. The recommendations are taylored for “buy-and-hold” investors.

The March edition will contain an appendix discussing the Interest-Equivalency Factor, Tax Effects on FixedReset Premium issues, with a discussion of the odd case of BAM.PR.R thrown in.

Those taking an annual subscription to PrefLetter receive a discount on viewing of my seminars.

PrefLetter is available to residents of Ontario, Alberta, British Columbia and Manitoba as well as Quebec residents registered with their securities commission.

The March issue will be eMailed to clients and available for single-issue purchase with immediate delivery prior to the opening bell on Monday. I will write another post when the new issue has been uploaded to the server … so watch this space carefully if you intend to order “Next Issue” or “Previous Issue”! Until then, the “Next Issue” is the March issue.

PrefLetter

Straight Perpetual Implied Volatility Calculator

As previously announced, the January edition of PrefLetter discussed the pricing of embedded options:

The January edition contains an appendix examining the calculation of Implied Volatility for PerpetualDiscount preferred shares and a discussion of the model and its applicability for portfolio management.

A calculator was developed to accompany this article and is available for download, with the permanent link under “On-Line Resources” in the right hand panel.

As always, I recognize that improvements are possible. If anybody sends me an improvement which I incorporate into the version of the spreadsheet published here, rest assured that this contribution will be fully credited.

Update, 2010-3-22: More issues now incorporated on spreadsheet.

PrefLetter

February Edition of PrefLetter Released!

The February, 2010, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

The February edition contains an appendix examining the concept of Strong Pairs of FixedFloater / Ratchet Rate preferreds, the implications of their pairing, and the market inefficiency in pricing these instruments.

As previously announced, PrefLetter is now available to residents of Alberta, British Columbia and Manitoba, as well as Ontario and to entities registered with the Quebec Securities Commission.

Until further notice, the “Previous Edition” will refer to the February 2010, issue, while the “Next Edition” will be the March, 2010, issue, scheduled to be prepared as of the close March 12 and eMailed to subscribers prior to market-opening on March 15.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: A recent enhancement to the PrefLetter website is the Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter, being delivered to clients as a large attachment by eMail, sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

PrefLetter

February PrefLetter Now in Preparation!

The markets have closed and the February edition of PrefLetter is now being prepared.

PrefLetter is the monthly newsletter recommending individual issues of preferred shares to subscribers. There is at least one recommendation from every major type of preferred share with investment-grade constituents. The recommendations are taylored for “buy-and-hold” investors.

The February edition will contain an appendix discussing the concept of Strong Pairs, their strange and unjustifiable treatment by the marketplace and how investors may exploit the pricing inefficiencies that thereby occur.

Those taking an annual subscription to PrefLetter receive a discount on viewing of my seminars.

PrefLetter is available to residents of Ontario, Alberta, British Columbia and Manitoba as well as Quebec residents registered with their securities commission.

The February issue will be eMailed to clients and available for single-issue purchase with immediate delivery prior to the opening bell on Tuesday. Note that Monday is a holiday. I will write another post when the new issue has been uploaded to the server … so watch this space carefully if you intend to order “Next Issue” or “Previous Issue”! Until then, the “Next Issue” is the February issue.