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Can You Actually Earn “Royalties” From Amazon, Netflix and the Internet’s Top Retailers?

Not Exactly ... but we check into that teaser pitch from The Wealth Advisory for you about "How to Earn $48k in 'Internet Royalties' EVERY Year"

By Travis Johnson, Stock Gumshoe, January 13, 2016

We have had a long line of questions about the misleading “Internet Royalties” teaser from The Wealth Advisory, so I’m going to re-share that one.

My initial solution for this teaser pitch appeared at the tail end of a Friday File for the Irregulars (our paid members) on September 12, 2014, so many of you will have seen it before…. though they must still be actively promoting it, because the questions continue to pile up. The story hasn’t really changed since then, nor has the original ad. What HAS changed is the stock price — the shares of the one specific company they hint at, and which I continue to own personally, are up almost 50% since they started teasing it.

So it’s only fair to warn you that although this is still among my favorite stocks, and still a top-ten holding for me personally, it’s a bit more expensive than the $35 they continue to tease in the ad, it’s well above $50 today and I have sold covered calls at $60 in recent months (currently I am long the stock and those calls have expired, I may sell covered calls again if the price is right).

Yes, this “Internet Royalties” stock is actually a Real Estate Investment Trust (abbreviated REIT), and it will probably trade like a REIT during times of interest rate upheaval, so we may see better buying opportunities as the Fed shakes the tree for investors in REITs and other income-focused investments. What follows has not been updated or revised since September, 2014 but I have added an excerpt from my recent note on this stock at the end (that note is from when they raised the dividend in December, the price was right around current levels then) to give you an idea of my current position if you’re curious.

— from 9/12/14 —

This is a pretty thickly obscured teaser, with what looks to me like a highly inappropriate pitch for what turns out to be a stock that I think is just fine (I should think it’s fine, I own it and I’ve suggested it to the Irregulars in the past as well).

Whatever is it? The suspense is killing me!

Here’s the pitch:

“How to make Netflix pay YOU ‘Internet Royalties’ for EVERY movie it rents

“Thanks to a new profit loophole, you can now earn ‘royalties’ of up to $48,000 per year from any of the Internet’s top 200 retailers….

“Netflix, the world’s leading online movie provider, rents roughly 200,000 movies per day.

“That amounts to more than 8 million movies per month.

“And thanks to a now-available profit loophole known as ‘Internet Royalties,’ you can legally skim a small amount of cash off of each one of those 8 million rentals and deposit it into your bank account.

“Now, the portion you earn per rental won’t be a lot. In fact, it’ll likely amount to something in the neighborhood of 1/20th of a cent.

“But while that may seem like a very tiny amount — and it is — consider this:

“If you were to earn just 1/20th of a cent EVERY time Netflix rents a movie this month, you’d pull in $4,000, free and clear.

“Do it every month, and you’re looking at $48,000 per year in pure profits.”

Sounds exciting, right? As you can tell from the fact that I’ve owned Altius for so long and from some of my other holdings, I’m lazy at heart and just loooove royalties — there’s something so very compelling about earning money on a business that requires no work from you. So the idea of “Internet Royalties” struck a chord.

Might there be some patent that all the Internet companies have to license, enriching some lucky patent holding company?

Might there be a chip design, like those of Qualcomm (QCOM) or Arm Holdings (ARMH), both of which have been pitched as “royalty” companies before, that we could stretch to say generates royalties based on this internet retail traffic?

Maybe something exciting we’ve never even heard of?

Hope springs eternal.

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Here’s more enticement:

“You can collect these ‘royalties’ from ANY of the Internet’s top 200 retailers… all at the same time if you wish.

“Take Amazon, for example…

“Though it keeps its sales numbers under lock and key, I was able to uncover that the company ships approximately 196 million packages per year.

“Now, thanks to ‘Internet Royalties,’ you can collect a small sum of cash for EVERY package it sends out.

“Again, the ‘royalty’ will likely amount to about 1/20th of a cent… but if you do the math, that works out to a cool $98,000 per year just from Amazon ‘royalties’ alone.”

OK, so we’re talking $48,000 or $98,000 a year, from two of the hottest stocks in the world in Netflix and Amazon? How can readers not be enthused and line up to subscribe to The Wealth Advisory to learn about this secret!

Well, perhaps it’s because that part is mostly ridiculous. Do we get any real clues to help us identify which stock this is that gets a “royalty” on pretty much everything that happens on the internet? Could such a thing really exist?

“collect these “royalties”…

“EVERY time someone logs into Facebook
“EVERY time someone buys a Microsoft product online
“EVERY time someone buys a Chromecast adapter from Google’s website
“EVERY time someone purchases a Xerox device on the Internet
“EVERY time someone buys a Disney DVD online”

OMIGOD THIS MUST BE AMAZING WHERE DO I SIGN UP??!!!

Then the ad throws a little cold water on us:

“You won’t start out making a million bucks. You probably won’t even make a hundred grand.

“However, if you follow my instructions today, you very well could put yourself in position to earn baseline ‘royalties’ and make as much as $48,000 over the next year.”

Now, I see these kinds of horribly misleading ads all the time, but still, this is KILLING me — I know there’s something plain as day that I’m not seeing just yet. Can we get another clue or two?

“You only need about $35 to get started.

“And remember, you don’t have to own stock in ANY of these companies in order collect “royalties” — not Netflix… not Amazon… not Microsoft… not ANY of them.”

So what do we buy?

“How ‘Internet Royalties’ Work (and why you’ve probably never heard of them)

“In September of 2010, the first ‘Internet Royalties’ were made available to the public.

“And on the very first day, investors spent a total of $270 million buying in.

“Ever since then, daily ‘royalty’ payouts have ranged anywhere from a mere $840 to $94,350….

“Remember, you’re not buying any expensive stocks… worrying about dividends… or holding bonds.

“Oh, and this has absolutely NOTHING to do with options in any way.

“Not only that, but you can also keep on collecting these ‘royalties’ for as long as you wish. And once the money hits your account, it’s yours — free and clear.

“You’re simply taking advantage while other people browse the Internet, buy products online, and log into well-known websites. That’s it.”

And in case you don’t think this is ridiculous enough (and I’ve left out most of the hyperbole), we also get a reference to another internet giant, Google:

“At the start of the year, shares of Google stock were trading for around $558 each.

“That’s pretty expensive… especially if you’re looking to buy several hundred shares.

“And even if you had the cash and ponied up for 50 shares, it would still have cost you $29,000.

“Now get this… on those 50 shares, you’d only have made just over $1,000 since January.

“I mean, if you’re going to sit on the stock for the next handful of years, you’ll very likely make more… but check this out:

“If you’d been collecting ‘Internet Royalties’ on Google instead, you could be sitting on an extra $50,000 — or 50 times more cash.”

So what are they pitching?

Well, we end up with just a few clues from all that — some kind of broad-based royalty stream not related to one specific internet company, not an options “income” strategy but something that pays real cash directly, it was created in September of 2010, and you can start right now for roughly $35.

So what is it? The Thinkolator, with an awfully high degree of certainty, will tell you that this must be a stock we’ve written about before (and which I own), CoreSite (COR). It’s a data center REIT, a concept which existed before in the form of Dupont Fabros (DFT) and Digital Realty Trust (DLR), but this particular company was IPO’d by Carlyle in September of 2010, did indeed raise exactly $270 million in that IPO, and is priced at about $35 right now (actually it’s down to $32 or so, the past couple weeks have been rough for most REITs).

CoreSite is a very good company, I think (obviously — I wouldn’t have bought shares and put them on our tracking spreadsheet as one of the core “Ideas” otherwise), but it’s sure not an “Internet Royalty” in the way they imply in the ad. They lease data center space to tech customers large and small at well-located, well-powered, well-secured data centers, and supply services on top of that to clients who need more than just rack space.

It’s sort of a commodity business, in that there are lots of data centers and some clients are just looking for linear feet of space and an allocated amount of power and connection to the telecoms, but there is a premium put on those with the best “backbone” colocations with telecom hubs, geographic locations, power supply, and management, among probably other criteria I’m not mentioning. And the “cloud” and growing internet use means demand for more space keeps growing faster than memory and connectivity equipment is shrinking, so I consider it a pretty steady business within the very rapidly obsolescing technology sector.

But the idea that you’re going to pull down massive $48,000 or $98,000 payouts in a year is, well, balderdash… unless you start with a huge position, and people who put on $1-2 million positions in REITs are not (I hope) doing so on the hype-y advice of a $99 newsletter (on sale for $49!).

So this falls into the large pile of teaser pitches that imply a specific, huge cash return… but are generally quite mum about the initial cash outlay required to get that possible return. At the current yield, $48,000 in annual dividend income would require starting with about $1.2 million worth of shares… unless part of that comes from capital gains because you’re convinced the stock will rise sharply (obviously, if you buy a $48,000 position, which is itself out of reach for many subscribers to $49 newsletters, and the stock doubles – which is always possible – you’ve got a $48,000 gain plus the relatively small impact of the dividend).

(If $1.2 million positions are normal holdings for you, and you delight in our $49 newsletter, well, drop me a line — I’m on the board of a nice little Montessori school in my town that would probably love to put up a new building with your name on the front.)

At its heart, this is a growth REIT with a good and growing yield, but it yields about 4% and I’d say it’s not terribly likely to have massive capital gains of 100% or more in the next year — it has almost tripled in the four years I’ve been covering it, going from $13 to $35, but that’s because we were lucky. We happened to find it when it was cheap and unloved as a “busted” IPO just a few months after it went public, and just as it was starting a pretty dramatic series of annual dividend raises even as interest rates were falling and investors were lusting after decent-yielding dividend growers.

That’s not as much the case now — I think it’s a good buy and is the class of the sector, partly because I expect the dividend growth to continue with another increase in December (they’ve raised the dividend sharply each year they’ve been public), but I’d buy it looking for something like 20% annual returns from here, dividends included, and let those dividends compound to boost multi-year growth (I’ve held it for about ten months now — I didn’t buy in personally back when it was young and I suggested it to the Irregulars in 2010, but so far my return has been about 15% capital gains plus 3% from dividends… kind of what I’d expect going forward).

Think about those examples in the ad, though — comparing a $29,000 investment in Google earlier this year to a similarly sized investment in COR (or, if they’re being broader, one of their competitors or a basket of them) and implying that these data center REITs would have you sitting on an extra $50,000?

If you had put $29,000 into COR back in the early part of this year, even giving you tremendous credit for catching it close to the 52-week low at $29 per share, then you would have a capital gain of about $5,000 on your 1,000 shares (this was a couple weeks ago, when the shares were still up above $34). And you would have received a little less than $1,400 in dividend payments. So even if we assume you get 2014’s full four quarters of dividends, that’s a total gain of $6,400 on your $29,000 investment, so a return of about 22%.

Pretty good, particularly since we’re talking about less than a year — but not an “extra $48,000.” That’s one of the few examples they used that actually included an “input” number, most of them just say, “hey, you could turn your small investment, starting with as little as $35, into $48,000!” … which is obviously stupid. Unless you buy in clumps and your first purchase is $35.00 and your second purchase is $25,000.00.

The market’s been good this year, too, despite what has happened in the last couple weeks, so even just buying an S&P 500 index fund would be up 10% or so since those lows. The best performing competitor lately has probably been Digital Realty (DLR), but that’s because they were a wounded duck beforehand and were recovering from accounting problems that hit in late 2013.

So yes, I still like CoreSite as my favorite data center REIT and I think it’s the cheapest, the fastest growing (and most sustainable dividend grower), and the one that gives me the most confidence in that small sector… but it’s not magical, and no, they don’t really earn a nickel for every Netflix rental or Amazon package — so far as I can tell, that’s just a highly misleading way of helping you visualize the fact that they essentially rent server space (that’s selling CoreSite short to some degree, they have more advanced services too — but at the heart it’s really all about the data center space).

Perhaps the newsletter is suggesting a whole bunch of these “Internet royalties,” they aren’t very clear about that other than specifically hinting about Coresite — there are other data center stocks that are worth looking at, including industry leader Equinix (EQIX), which has been planning a REIT conversion but isn’t there yet, and newer, smaller entrants to the public markets like CyrusOne (CONE), whose prospects look decent and who is in a little growth spurt from development that could bring good dividend growth (though they’re more heavily levered, too, which means missteps would hurt them more).

And, of course, these are REITs so they trade like REITs, heavily influenced by interest rates and interest rate expectations and by competitive rates available in other income-focused investments. As I’ve said before, I think a long, slow rise in interest rates will be good for most of the REITs and similar dividend-growth stories that I like in the end, but it can certainly bring in big buying opportunities for them in the short term (just check out what happened to pretty much any REIT you can think of in May, 2013, when Bernanke started talking about ending Quantitative Easing — that could easily happen to them again if there’s more hawkish, “rates up in January” or similar talk from the Fed, and that’s part of the reason why most REIT’s are down 5-10% in the last couple weeks).

If the consensus swings hard for interest rates and all the REITs start getting beat up, I hope to be nimble enough to nibble at the ones I think are best situated for a growing economy. Right now, COR is a hold for me given my expectation that we’ll probably get a dip on some interest rate hullabaloo at some point — and I’d be happy to buy more if it gets cheaper, or if they boost the dividend nicely this Fall and don’t get any credit for it.

—back to more recent updates now—

For those who wonder what kinds of notes I send to our paid members, here’s yet more of a little taste — this is what I wrote in a Friday File to the Irregulars when I added to my Coresite position back on July 24, 2015:

7/24/15: I added to my position in Coresite (COR) today, following their most recent quarterly results. COR is a data center REIT, they own strategically important colocation data centers in some core areas, including LA and NY and Chicago. There are a lot of things to like about COR, including their fantastic trend of dividend increases in recent years, but one of the most important metrics is that — unlike a lot of traditional REITs — their cash flow is so impressive that they are able to fund a lot of their development without large amounts of debt or new equity offerings. They have increased their share count by about 10%, and their debt by about 20% over the last four years in the process of quadrupling their revenue. That kind of leverage and reinvestment is difficult for REITs to come by. Analysts expect COR to continue to grow funds from operations (that’s what REITs use instead of earnings, usually, so they can report their cash flow without depreciation) at 15% a year, which should allow them to continue to grow the dividend by double digits — the yield, at 3.5%, is not overwhelming large, but the dividend is easily covered by FFO so it can grow nicely and still not overly hamper their ability to grow.

Coresite is still small, with a market cap of about $1 billion, and there are now several other interesting data center REITs that are young and appealing as well, and CyrusOne (CONE) and QTS (QTS) have been impressive growers that might be worth some attention (both are a bit cheaper than COR by most measures). It might also be that DuPont Fabros (DFT) is finally turning things around, though that’s been the underperforming stock in this group for a long time (DFT is also one of the few that, like COR, has managed to avoid issuing a lot of new equity over the past couple years). I had been waiting for interest rate panic to drive the shares down a bit more, but after another excellent earnings report I decided to add to my position now — they just upgraded their funds from operations guidance by about ten cents to about $2.80 per share for all of 2015, so analysts will likely be upgrading their estimates to catch up. I would have been well advised to make this purchase on one of the occasions over the past couple months when the shares dipped to $45-46 instead of adding at $49 as I did, but, well, I still like the valuation at 17.5X FFO for this year and with expected 15% annual growth… and probably another dividend increase of 15% or so at the end of the year that would increase the effective yield on today’s buy to about 4%.

It’s not dirt cheap as it was when we first suggested it several years ago, but it’s still growing nicely, occupies a strong niche, and should show great growth in the increasingly cloud-dependent economy in the next several years… I’ve been very impressed with COR management and their ability to grow this minnow in a field of sharks (including giant $16 billion Equinix (EQIX), which just became a REIT and ~$10 billion Digital Realty Trust (DLR), which pioneered the sector), and now that the Carlyle Group (who brought them public about five years ago) have sold off most of their shares they don’t have that threat of a big institutional seller that helped to drive the shares down a couple times over the years. I expect to own this one for quite a long time, and suspect that their dividend growth and relative lack of debt will make them a bit less susceptible than traditional income investments to interest rate fluctuations, but I could be wrong — if interest rate fears drive this down substantially I’m likely to buy more.

And then I shared a brief note when COR got a bit more richly valued and they raised the dividend in December, this is from the December 4 Friday File:

And we’ll close with Coresite Realty (COR) — as expected, my favorite data center REIT increased the dividend again this week, but they raised it even more than I thought they would. The quarterly dividend was hiked from 42 cents to 53 cents (I was guessing 50 cents), an increase of 26% and good for a forward yield now of 3.6% (at the current $58 share price). That’s about right for COR, I think, and the market was clearly expecting something along these lines because it had essentially no impact on the share price (which is continuing to flirt with all-time highs).

I’ve been growing a bit uneasy about COR’s valuation, which is why I sold some December $60 calls to bump up my income a little bit, and wouldn’t object to selling my stock at $60 if it gets above that level in the next couple weeks… but if those shares do get called from me, I’ll probably turn right around and sell puts a bit lower to add them back to my portfolio eventually, this is still a stock whose management and performance I really admire, and it’s one I’d like to hold for quite a while as the dividends compound nicely (and grow nicely). Dividend growth is a fantastic thing, the shares I bought in the low $30s now have an effective yield-on-cost of 6.5% or so, and if you were lucky enough to buy when I first featured it a few years ago at $13 (I wasn’t, my buy came a long time after I wrote about it) your effective yield-on-cost would be about 16%. COR has earned its premium price largely because of the rapid pace of dividend growth, so it’s still a core holding for me — even if my covered call sale means it gets taken away and I have to work my way back into the shares… it’s just that my inclination, after this huge run in the shares, would be to wait to be an aggressive buyer until it gets back to the low $50s again, as it probably will at some point.

So that’s my thinking. It’s your money, though, so what do you think? Let us know if you’ve got thoughts on COR or other REITs with a comment below. We have left the original comments appended to this article below so you can see what Gumshoe readers have shared in the past… enjoy!

Disclosure: As mentioned above, I do own shares of Coresite personally as of January 13, 2016, I also own shares of Google and Facebook and Disney, which were mentioned briefly above. I don’t have direct interest in any other stock mentioned, short or long, and won’t trade any covered stock for at least three days after publication of an article per Stock Gumshoe’s trading rules.

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Guy Smith
Guy Smith
January 24, 2015 3:30 pm

I always, always, always consult the Stock Gumshoe on “too good to be true” or even just average everyday investment opportunities and strategies. I have certainly saved $100s over the years by NOT buying the various investment charlatan’s newsletters – particularly those with get rich quick enticements. Keep up the good work. Travis – you’ve certainly accumulated a lot of good karma in my books over the years by clearing the air on foggy ideas and schemes for naive investors.

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Frenchy
Frenchy
January 25, 2015 1:33 am

Guy,
You are right, Travis has saved us lots of money of the years which is why you should consider becoming an Irregular for $49. You will certainly continue to save more by learning what stocks to avoid and possibly make some in the process by knowing what stock to get into. We have the best biotech thread on the net if you are into that.

PS: I receive no personal or financial gain from this. Just friendly advice.

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CJ Sudyka
Guest
February 2, 2015 9:09 pm

I am one more who narrowly escaped throwing away $49. Perhaps you could point me in the right direction on one other Wealth Advisor wonder wagon? They offered a more expensive basically revolving investment calender in which an investor can move as little as $5000 around to qualify for dividend checks, to be disconcerned with performance but pick up quarterly dividend checks for becoming a shareholder on the dates of record. Any thoughts?

Antonio
Guest
Antonio
February 14, 2015 1:40 pm

Hi everyone, thanks for the advice. Yes, it’s true, a true scam and still going arround. I just got it today. For all those that think these advisories are here to help you, not. If you get enough diferent newsletters you will notice that they are all out of the same template. The way they pitch, the video structure etc. If you use all these monies from these “reports” to pay your own bills while you recearch for yourself about investments, you’ll be better off. You can find good investments, it just takes a little time. Remember, if you don’t understand it, don’t put your money into it. Thanks for the good work.

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utkarsh dos
Guest
utkarsh dos
March 21, 2015 11:06 am

Hi travis,
Thank you for this wonderful analysis. I found another website/blog that is showing of your research as one of their own (plagiarized ) which I think you ought to know. I could not post my comment on the site. Here is the linkhttps://upsetreviews.com/2014/10/what-is-the-internet-royalties-stock-pitched-by-the-wealth-advisory-newsletter/

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jonomalley
Member
March 25, 2015 4:08 pm

Travis can you tell me: does owning a REIT complicate tax returns at all? I’ve avoided them until now thinking for some reason they’d add more pages to my already preposterously thick tax filings. Thanks!

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frank_m
frank_m
March 25, 2015 5:10 pm
Reply to  jonomalley

Jon, a REIT will send a 1099, most of mine report the dividend as ordinary income, sometimes there is a LT capital gain, or the dreaded return of capital. They are NOT qualified dividends, which are treated favorably for you on your return, this is because as a REIT they pass through their income avoiding corporate income tax to a large degree. I am not a CPA, but that has been my understanding. Some of my favorite and best performing equities have been REITs.

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jonomalley
Member
March 25, 2015 6:16 pm
Reply to  frank_m

Perfect. Thanks VERY MUCH, Frank. Appreciate it.

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Dave
Dave
March 25, 2015 4:08 pm

Well, as (bad) luck would have it, all of the commenters above who thanked Travis for saving them 49 bucks, had they spent it on the newsletter and then invested, say, $5K in this stock on Oct. 1, would now be ahead about 48%, or $2400.

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jonomalley
Member
March 25, 2015 4:26 pm
Reply to  Dave

The sun shines on a dog’s ass every once in a while. You’d also have to lose that $2400 every year buying all the other junk newsletters out there along with this one, cuz the sun also shines on those dogs’ asses every once in a while too. Along with all the other losses and/or mediocrity from investing in all the stocks that are pitched. I’d rather just follow Travis and avoid 99.5% of the stocks that are pitched by these yahoos and buy only when something really solid presents itself.

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Dave
Dave
March 25, 2015 5:28 pm
Reply to  jonomalley

COR is (and was in late Feb) pretty solid, actually. Travis owned it then and now. Otherwise, I agree with you…most of the newsletter hype is empty. I hope lots of readers here saved themselves 49 bucks AND bought the stock. Sorry to report that I didn’t.

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Dave
Dave
March 25, 2015 5:29 pm
Reply to  Dave

I should written ‘late Sept’.

jonomalley
Member
March 25, 2015 6:18 pm
Reply to  Dave

Ah, got it. I thought you were advocating people run out and buy this or that newsletter. Which is pretty much antithetical to the purpose of this (rather brilliant) site. Good luck.

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bette
bette
March 26, 2015 12:21 am
Reply to  jonomalley

Very well put Jon!

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Roger Stevens
March 25, 2015 7:11 pm

Judy and others:
1. If my aim was responsibly investing while pursuing an active life, I’d do what Travis says and get ETFs that are broad based like the S&P 500, and add some closed end funds that specialize in something out of favor at the moment and have a large discount–say BCX at the moment.
2. If I wanted a gambling hobby, I’d buy individual stocks avoiding momentum stocks priced at many times the annual earnings. I’d avoid all the hucksters and hypesters, whom I regard as the enemy in contrast to Travis and Dr KSS, whom I regard as the good guys and friends. And I’d jump a the opportunity to buy the best bargain of the century, Travis and Dr. KSS’s advice. I use Schawb because they offer the advice of various pure advisory services as well. With this modus operandi, I might break even or perhaps get well ahead.
3. In any event, I’d live in fear that Travis will increase the irregulars’ membership to what the traffic will bear. I hope that he and Dr. KSS are satisfied with our adoration instead of what their advice is worth.

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quincy adams
Guest
quincy adams
March 25, 2015 8:36 pm

Looking back at COR, it does look like all of us should have bought in 2010 and perhaps sold yesterday. It’s growth in market valuation appears to have outrun that of the distributable income by a wide margin. It’s a good company, but those looking for pullback for a better entry point may get their wish.

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Steve Mack
March 25, 2015 11:18 pm
Reply to  quincy adams

Just a tip for you online investors. I use Merrill Lynch and because of my accounts with Bank of America I get 30 free trades per month. I haven’t paid a commission in almost 4 years.

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fedwatcher
Member
fedwatcher
March 26, 2015 5:31 pm

In a regular IRA or a Roth IRA the fact that REIT dividends are ordinary has no effect. In a regular IRA all your withdrawals are considered ordinary income so you get not qualified dividend benefit anyway. In a Roth IRA there is no tax impact as well.

As for K-1s, it depends. Do not assume that the K-1 you receive is for you, it can in some cases be for who holds your IRA and should be forwarded to them and not reported by you and in other cases it can be for you. K-1s can really complicate things, thus I avoid MLPs as they can cause you to have to file numerous state income tax returns for states you have no other interest in. That is a time commitment better spent on your homework on the rest of your portfolio.

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jozsika
jozsika
March 26, 2015 7:51 pm

Hi, Travis,
Thanks, as always for the very informative and well researched article.
When you discover (or should I say: uncover?) dividend plays, I always look up preferreds of the company. COR does have a preferred (COR-A), but it is priced well above par. OTOH DLR (that you also mention) has several preferreds. These are all cumulative and not callable. And DLR happens to be investment grade. I owned them for a while and as these are senior to the stock, I didn’t lose sleep even when the company (seemed to be) in trouble.
Just an FYI to consider extending your (vast) arsenal. [I use CDX3, an excellent service, specialized in preferreds.]
Thanks again,
joseph

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Jon
Guest
March 28, 2015 7:11 pm

Any pitch that runs on and on is strike 1. Invest $35 or $49 and get $48,000 back is strike 2. If this is so great and so easy, why isn’t everyone doing it, and why isn’t this illegal is strike 3. Thank you for confirming my suspicions. What really bothers me is that Briton Ryle’s article came to me through Sean Hyman’s Ultimate Wealth Report email. Does he endorse this? What does that say about him? Thoughts?

mikas
Guest
mikas
January 9, 2017 7:06 am
Reply to  Jon

good day Jon

where do one sigh up for this if you could mail me the link that whould be nice thanks

regards Mikas

Myron Martin
Irregular
April 5, 2015 12:44 pm

JON: There is a lot of really shallow research out there and many analysts like to piggyback on the themes of others that seem to generate any decent response. The newsletter industry is certainly a “buyer beware” situation that can be costly for naive and first time investors. You have certainly pinpointed some of the key warning signs of a scam. Nothing upsets me more than income claims that are made with either no indication of the amount required to be invested to achieve an alleged gain, or worse, misleading language such as this one that could lead careless or naive readers to assume that a $35. investment could return as much as $48,000. which is preposterous on its face.
On the other hand, after reading almost 100 comments many thanking Travis for saving them $49. it generates two thoughts. 1) Virtually standard in the industry is a “money back guarantee” and with the number of people that read the Gumshoe I would like to see more reporting on peoples experience in getting refunds on newsletters with which they are dissatisfied. On a personal note I would opine that a 30 day refund is really meaningless as 30 days is really not enough to seriously evaluate a newsletters long term value, even 90 days is borderline. Most legitimate publishers will offer 4 – 6 months to decide whether it is a “keeper” and even offer a prorated refund beyond that. I suspect what many publishers count on is people either forgetting to ask for a refund in the timelines given, or people being so cynical they don’t believe they will get their money back and so don’t ask.

2) After years of reading the comments on this site and others I am amazed at the cynicism of so many who bash various analysts or publishers with a broad brush of condemnation over possibly one bad experience that may well have been their own fault. Nobody is perfect, if you can’t take the occasional loss then you will never become a successful investor. If you expect every stock picked by an analyst to be a winner based on YOUR own timing of buy and sell points then you are indeed naive and primed for disappointment!

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Lulu
September 16, 2015 1:19 pm
Reply to  Myron Martin

Myron, I’m am a novice who has lost a great deal ( on paper) following a few news letters regarding gold/silver. My fault, I have learned my lesson. I’m still inundated with these letters as it seems impossible to unsubscribe. Grrrrrrr.
I’m very pleased to be a part of Gumshoe, the only newsletter I now subscribe too. Thank you to all who share.
Myron, do you have a newsletter ?
Thank you

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jbinsc
Member
May 8, 2015 4:40 pm

I’m changing the subject slightly, but the theme is the same. Make a lot of money without doing much ! Anyway, Travis, I have received emails as far back as 11/14 promoting ” Daily Dividends”, connected to AngelNexus publication “Real Income Trader” It smells fishy to me.
I’ve checked your archives and if it has ever been mentioned I can’t find it. I would greatly .
I would greatly appreciate your thoughts ! and comments from other members as well.

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archives2001
archives2001
June 1, 2015 6:40 am

This REIT like most REITs is highly susceptible to the securities & real estate markets.
If the market plummets like I and many others suspect in Sept/Oct, I certainly wouldn’t
want to be holding onto stuff like this unless I was planning on riding things
out for a few yrs, Travis.
I’ll indeed be looking into put options, spreads, and premiums come Mid Aug.

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Jay
Guest
Jay
October 21, 2015 12:24 pm
Reply to  archives2001

When do you see this decline? We are almost through October and I went defensive at the end of August and am getting my butt kicked.

frank Retermen
Guest
frank Retermen
July 23, 2015 9:37 am

I have received this e-mail just few days ago and quite frankly I wanted to believe but due to some old experience where I have been naive a little voice told me: this is too good to be true.

I was almost sure it was too nice, it is very difficult if not impssible to generate 48.000$ out of 35$ without going to win a lottery or something else. I am happy to have found this article and have seen simply the true.

Owen Pritchard
Guest
Owen Pritchard
July 27, 2015 2:35 pm
Reply to  frank Retermen

So………..chaps, is it indeed a scam or a worthwhile venture, I’m a novice at this type of stuff and need to be guided.

Owen Pritchard
Guest
Owen Pritchard
July 27, 2015 2:35 pm

Scam or no scam ?

alanh
September 16, 2015 10:05 am
Reply to  Owen Pritchard

Stocks only ever go up or down (forget sideways as it proves nothing). If it goes down, its a scam….if it goes up, the guy is a genius. Place your bets ladies and gentlemen.
At least Travis’ research is unbiased and free. I grade that A*

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Fernando Romero
Guest
Fernando Romero
September 6, 2015 1:38 am

This misleading teaser is touching the limits of etics. Istn´t there in the States an organism that gives protection to the public ?

Myron Martin
Irregular
September 16, 2015 1:18 pm

Agree: Many of these teasers breach ethics standards for me. Lacking official rules that would put perpetrators in danger of prosecution, all we can do as individuals is to totally avoid and publishing firm that employs these deceptive practices. It has always “bugged me” when teasers make outrageous profit claims without disclosing how much money would have to be invested to realize the returns projected in the best of circumstances.

Al
Guest
Al
September 16, 2015 2:39 pm
Reply to  Myron Martin

Even the more ethical newsletter publishers make outrageous claims and do not apologize for it. They claim they have to do it in order to get subscribers! Then some of the better ones will lead a person to more sensible reports and recommendations; after a person has subscribed.

cw99
September 16, 2015 10:26 am

Travis,
So, we should probably wait to hear about this next interest rate hike. At that time you would expect most REITs to drop, and then we should snap up some $COR. Correct?

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Annastasia
Guest
Annastasia
October 9, 2015 2:21 pm

Hi everyone,
I am a part time model with a business degree. Over the last 2 years i’ve had alot of financial success with modelling and wanted to do some smart investing outside of what my planner does. I wanted to expand my portfolio into dividends and i took the bait. I read over the article and spoke to customer service on how much exactly I would have to invest to see these 48k “royalties” hundreds of thousands no doubt.
She of course said she couldn’t give any advice due to the SEC regulations. I feel silly, so i just emailed for a refund, though it wasn’t a large amount to lose – it’s just the misleading headlines that bother me so. I guess I will leave the majority of my investing to the professionals.

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Suji
Guest
Suji
July 12, 2017 5:16 pm
Reply to  Annastasia

Thank you, thank you very much for the information. I was so looking to get hooked into this internet royalties and make some quick dollars, saved on time. Now the task of getting ‘unsubscribe’.

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