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Lynn Energy LLC – $LINE $LNCO

Today’s Stock Pick of the day is Lynn Energy, LLC (LINE) Lynn Energy is a master limited partnership (MLP). If you are not familiar with MLP, fear not. The main difference between an MLP and a normal company is that you are paying for units of the partnership rather than shares of a company. A limited partnership means that you have no involvement in day-to-day operations, a silent partner, if you will. MLPs are similar to REITs in that they are required to pay out most of their income to unit holders, they are generally very high yield, and they invest in mostly energy assets. This is what gives them such a large appeal.

What this means for you is that The general basis is that it is not beneficial to own LINE in a retirement account, one that already has tax advantages.  MLPs do not pay corporate taxes. These taxes are considered to “pass-through” to the investors,  meaning liabilities and expenses are passed to you so you’re investment is not double taxed. Also, MLP investors may write off partnership expenses (depreciation, etc.)against income on their tax returns.The distributions that you receive from an MLP are considered a return of capital. This means that you will pay no taxes until the you sell the MLP, aka tax deferred.

If you want to invest in Lynn Energy in a retirement account I recommend going with LNCO, which is set up strictly to hold LINE units, and follows traditional tax procedure.

With LINE pullback, and now steady rise. I believe that they are a good investment moving forward. They also currently yield 9.67%, which is a fairly high yield in general. You will also see an appreciation in price over the coming months. They are also looking to merge with Berry Petroleum (BRY). This could end up being very lucrative.

Lynn Energy LLC

Disclaimer: I currently do not hold the above mentioned investment. I may look to add to a position in the above mentioned investment, within the next 30 days. I am not looking to take a short position in the above mentioned investment within the next 30 days.

Movado Group Inc – $MOV

Today’s Stock Pick of the Day is Movado Group Inc (MOV). Movado designs, sources, markets, and distributes fine watches. The company operates in both the wholesale and retail space, but most sales come from mainly wholesale. They offer their watches under the Coach, Concord, Ebel, ESQ, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste, Movado, and Tommy Hilfiger brands and sell to the jewelry store chains, department stores, independent regional jewelers, licensed partner retail stores, and a network of independent distributors.

This could be a solid jewlery play going through this Christmas season. It’s sitting in oversold territory and should see support at this level. With the pullback that it has taken this month this is now at a buying level. Who knows, if it jumps back up maybe you can buy a watch by them for yourself. A nice little present for Christmas.

Movado Group Inc

Disclaimer: I currently do not hold the above mentioned investment. I may look to add to a position in the above mentioned investment, within the next 30 days. I am not looking to take a short position in the above mentioned investment within the next 30 days.

Chimera Investment Corporation $CIM

Stock Pick of the Day is Chimera Investment Corporation (CIM) All this company has done is make people money. This is in the REIT family and what that means is that it is required to give 90% of its income/earnings back to shareholders. This means more money in your pocket.

Their dividend yield is almsot 12% annually. With the company having yielded 12% on top of the of the 20.31% year to date. This company has, and will make you money.

Chimera Investment Corporation

Disclaimer: I currently do not hold the above mentioned investment. I am not looking to add to a position in the above mentioned investment, within the next 30 days. I am not looking to take a short position in the above mentioned investment within the next 30 days.

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