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Summary
- Traders threw in the towel on October 15, 2014.
- This capitulation after a 9.6% near-correction was another in a series of opportunity entry points for dividend growth investors.
- All this turmoil has given me a headache!
- Retirees can find a way to relieve all that ails them by investing in solid pharmaceutical- related stocks whose growing dividends will pay for their drugs.
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Summary
- Cost control efforts, aggressive PRB inventory drawdown and healthy liquidity position will help navigate through industry downturn.
- Covenants for the company have been relaxed through credit amendment efforts.
- Stock price likely to remain under pressure in near term due to challenging coal market conditions.
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Summary
- A review of the merits of Parsimony Investment Research’s selling guidelines was conducted.
- Loss thresholds via stop loss orders may have mixed benefits for dividend growth investors. Much depends on the initiation price, the amount of appreciation, and the margin of safety.
- Depending on the dividend growth rate, selling a dividend stock that has collected 5 years’ worth of dividends in a 6-month period may not be as beneficial or disadvantageous.
- Using these guidelines may lead an investor to “trading,” which many dividend growth investors do not engage in.
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Summary
- Plan to rationalize portfolio and exit from more than half of brand portfolio is long term positive.
- Ability to improve revenue growth and market share remains limited.
- Cost control initiative will support earnings growth and is viewed as positive stock price catalyst.
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Summary
- We looked at over 450 widely-held ETFs where Market-Makers [MMs] have been helping big-money fund managers adjust their portfolio holdings.
- Often (usually) the size of their trade orders require MMs to take part of the other side of the trade, putting MM firm capital at risk.
- MMs always hedge such risk exposures when taken. What they will pay for protection, and the way the hedge is done, tells just how far they think prices could run.
- Here are the 50 ETFs with the biggest upsides, and the actual market experiences, good and bad, in the next 3 months following prior forecasts like those of today.
- We ranked them, considering odds of a winning buy, worst-case interim price drawdown, how long it took to get to a forecast sell target, and annual rates of gain.
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Summary
- InvenSense reported Q2 '15 earnings.
- Stock remains a long-term buy for investors willing to accept the volatility.
- Investment thesis anticipated the company meeting stated technology goals, but it missed that margins would take a severe hit during the quarter.
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Summary
- COG has established an advantageous position in one of the most economic, large-scale resource plays in NA.
- COG’s Marcellus shale position should allow the company to continue to post industry-leading returns and production growth for several years to come.
- Cabot’s continued share buybacks should limit downside.
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Summary
- Risk management can be accomplished through proper diversification, and a focus on sound fundamental valuation.
- Retired investors cannot avoid all the risks associated with owning equities.
- However, there are obvious risks that can and should be avoided.
- Overvaluation is one of the most obvious risks to avoid.
- Build your dividend growth portfolios like the smart little pig that built his “house of bricks”.
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Summary
- The Cleaning Products industry is expected to outperform the S&P broader market substantially this and next quarters and in 2015, and significantly beyond.
- Mean/high targets for the 3 largest U.S. Cleaning Products companies – Ecolab, Church & Dwight, and Stepan - range from 1% to 25% above current prices.
- Find out which among Ecolab, CHD and Stepan offers the best stock performance and investment value.
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Summary
- The Fannie Mae conservatorship, and Treasury’s Senior Preferred Shares and Warrant, are governed by seven documents.
- These documents are a credit to the legal scriveners’ art, making the moderately complex obscure to the lay reader.
- This article will translate from the legalese the provisions that holders of Fannie stock will want to know.
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Summary
- AIT organic growth remains slightly positive at 3.2% Y/Y. Total sales, including acquisitions, are up 16% Y/Y. EPS rose 10.5% Y/Y. Acquisitions integration continues.
- The stock performance leaves a lot to be desired, as the organic growth fails to impress and acquisitions are still being integrated. Acquisition synergies should benefit the stock in 2015.
- I confirm my long thesis and keep my target price at $51, offering a ~7% upside within a year plus the 2% dividend.
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Summary
- After announcing strong results last week, 3M shares jumped to an all time high and now trade at 18x projected 2015 earnings.
- Although this valuation appears expensive, 3M's strong competitive position, flexible balance sheet and impressive dividend growth warrant a premium valuation relative to peers.
- A DRAG (dividend and risk adjusted growth) analysis demonstrates that 3M shares have 10% further upside from their current price.
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Summary
- Proposed FCC rules would give Internet streaming video providers access to live TV and premium cable content.
- The only restriction is that the content would have to be streamed "live" on the as-broadcast schedule, so it wouldn't be available on demand.
- This gives Apple an opportunity to offer an Apple television with a unified experience for all video content.
- iTunes could become the Apple-provided source for that content, available to all Apple devices.
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Summary
- Brazilian food manufacturer Cutrale-Safra has finally succeeded in acquiring Chiquita; this follows a failed merger with Fyffes.
- The deal appears to be getting an approving nod from investors; Chiquita stock rose $.21 on the news to $14.37 per share.
- Chiquita stock has risen 40 percent over the last few months; recent earnings showed increased net income from 2013.
- With the added boost from the Chiquita’s sale, Chiquita investors could see green (not yellow) in the near future.
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Summary
- Gold and gold mining stocks have broadly declined the past few weeks.
- Strong economic growth and an optimistic outlook by the Federal Reserve have contributed to gold's fall.
- As long as investors remain bullish on the U.S. economy and stock market, gold will continue to decline.
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Summary
- After two articles about the top DGI portfolio picks from my 10 panelists, I reveal my choices.
- Many companies are overvalued, but there do seem to be some opportunities.
- COST, BAX, TGT, LMT and MAIN are among the names discussed in detail.
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Summary
- Summary numbers: Revenues of USD 1166 million, Net Earnings of USD 27.50 million and EPS of USD 0.59. Performance focus more on top-line than bottom-line: same period year-on-year revenue change of 29.60% vs. change in earnings of -15.38%.
- Gross margins now 12.10% from 18.77% compared to the same period last year, EBITDA margins now 12.10% from 12.70%.
- Ability to strengthen the balance sheet? Year-on-year change in Operating Cash Flow of 25.89% better than change in earnings.
- Earnings decline from operating margin decreases as well as from unusual items.
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Summary
- Summary numbers: Revenues of USD 923.17 million, Net Earnings of USD 27.13 million and EPS of USD 1. Performance focus more on top-line than bottom-line: same period year-on-year change of revenue of 5.67% vs. change in earnings of -42.55%.
- Gross margins now 5.30% from 6.26% compared to the same period last year, EBITDA margins now 5.30% from 6.26%.
- Ability to declare a higher earnings number? Year-on-year change in Operating Cash Flow of -17.08% better than change in earnings.
- Earnings decline from operating margin decreases as well as from unusual items.
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Summary
- Honeywell has increased dividends per share by 50% since 2010.
- The company has a very low payout ratio of 35% and plenty of room to increase it.
- Consensus EPS estimates for 2018 imply that HON could increase its dividend significantly by then.
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Summary
- Net Element is growth company in the payments industry that should benefit from the adoption of mobile payments in the US and Russia.
- The new CEO took his former company, Unified Payments, from $0 to $67 million in revenues in two years. We believe he has the experience and drive to replicate this.
- The company just announced a shelf offering to raise up to $50m to pursue accretive portfolio acquisitions.
- Management has been restructuring operations and finances and we believe the fruits of these efforts will show in 2015 and beyond.
- If Net Element achieves our forecasts, we believe its common stock will be worth $2.42 per share twelve months from now, based on an industry average valuation of approximately 5x enterprise.
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Summary
- SASSA contract likely suppressing shares as investors ponder whether they lose this long-term and lucrative contract.
- The company has many fingers of growth in different markets and different geographies. As they put the SASSA implementation behind them, they can refocus on growth areas.
- Valuation is extremely cheap given the operating performance and large chunk of recurring revenue.
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Summary
- Hotel-focused REITs have rebounded as business and leisure travel continues to strengthen.
- Single industry-focused REITs can be a good investment but carry unique risks.
- Portfolio quality and brand placement are key items to research before investing.
- As with any REIT (and company for that matter), management performance is critical.
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Summary
- ARCP holds a conference call to assuage investor fears.
- This seemed to have worked, with shares rebounding to around $10.
- However, the sell-off continues on Thrusday with shares down 6%.
- At current pirces, ARCP yields 10.60%.
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Summary
- Noble stock is down 40% from the beginning of the year, management's plans to enhance shareholder value are a positive.
- An MLP, similar to SDLP or RIGP, could help shareholders but remove the best assets from NE.
- Moody's quickly expressed concern about a share buyback, highlighting the weakening outlook for NE's cash flow.
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Summary
- Despite a solid quarter, Facebook stock sold off following the report.
- Investors were worried about rising costs and a tempered outlook.
- With the growth story still intact, the selloff may provide an interesting entry point.
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Summary
- SODA will relocate its West Bank factory to the Negev, inside Israel itself.
- SODA has faced repeated boycott calls over a factory in occupied territory.
- Consolidating facilities will also reduce costs, important while SODA tries to get growth going again.
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Summary
- The media and market pundits are jumping on the "oil bear" bandwagon.
- Yet worldwide oil demand is growing in spite of a lackluster worldwide economy.
- A typical tight-oil shale well has a 1 year depletion rate of ~70%.
- With no leasehold constraints, US independent oil producers can very quickly cut shale oil output by simply drilling fewer wells.
- As a result, US oil production is now quite elastic and can rapidly respond to lower (or higher) oil prices.
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Summary
- The Fed’s low-rate policy has left retirees gasping.
- Mutual funds, exchange-traded funds and closed-end funds, the diversified vehicles used by most investors to invest in bonds, are susceptible to declining values as interest rates rise.
- Invest in individual, investment-grade corporate bonds.
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Summary
- Lump sum investing beats DCA investing.
- DCA investing in random stocks beats DCA investing in the S&P 500.
- Modifying the random DCA approach can produce better results.
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Summary
- Q3 earnings were released on the morning of October 30.
- Earnings per share came in above expectations and revenue fell just short.
- The company's stock has reacted by moving over 8% higher.
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Summary
- Just because we've lived in a low-yield environment in recent years, doesn't mean there haven't been fantastic opportunities in fixed-income.
- BNY Mellon's Series C Preferred was one such opportunity.
- On a risk-adjusted basis, a 25% return from a high-quality preferred stock is hard to beat.
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Summary
- Goldcorp (GG) just reported its third quarter results which missed estimates on earnings but saw revenues climb year-over-year.
- I discuss the production results and costs.
- What is going on with cash?
- Is the dividend secure?
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Summary
- The news media is blasting out the third quarter GDP numbers: a 3.5 percent rate of growth.
- Year-over-year, the rate of increase was only a tepid 2.3 percent a little above the compound rate of growth for the first five years of the current recovery is 2.2.
- Maybe we need to accept the fact that the economy is going through a long-term transition and is not just recovering from a short-term recession.
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Summary
- Fear trade got you into gold, but love trade will make you richer with it.
- Precious metals can serve as financial insurance, but that’s not the only reason they’re valued.
- Learn why the industry loves these metals too.
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Summary
- The stock is selling at 6 times its current earnings while the industry average is 25.
- Net income has increased at an 8.4% compounded rate over the last five years.
- The company has increased its dividends on the past years. Right now it represents an outstanding 11% yield.
- Brokers such as Deutsche Bank and Renaissance Capital have upgraded the stock.
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Summary
- Cintas Corporation has paid increasing dividends for 31 consecutive years.
- The company is an industry leader in corporate uniforms, with a market share of approximately 25%.
- Is Cintas a good fit for your dividend growth portfolio?
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Hawkish Fed No Friend To Bulls, Energy High-Yield Equals Crisis In Waiting, US Dollar All Systems Go
Summary
- "Don’t fight the Fed." This is a mantra for bulls when the Federal Reserve is supportive of easy monetary policy. But when the cycle turns, watch out.
- The Federal Reserve deliberately targeted higher asset prices as a means of generating a “wealth effect.” They did this by encouraging corporate borrowing at near-zero rates.
- But as David Lafferty of Natixis Asset Management points out to Bloomberg: “You can’t do a whole lot more cost-cutting and you can’t buy back a whole lot more stock….
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Summary
- Tw telecom acquisition approved by shareholders.
- Five year EPS and FCF CAGR in excess of 30%.
- Nine billion in NOLs.
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Summary
- Middle East/Africa region continues to see growth in customers and revenue.
- Revenue declines were lower than past quarters, showing a rebound in revenue.
- Company said to be exploring sale or spinoff of several international assets.
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Summary
- Cliffs Natural's equity has rebounded in the last few sessions due to optimism coming out of their call.
- While I am still not sold on their plan, the capital complex was getting cheap.
- The bonds lend support to the recent equity move and the company's liquidity.
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Summary
- BC Iron has to revise its earlier production guidance and now expects a lower iron ore output.
- This is a surprise as just two months ago, the company reiterated the original guidance.
- I will have to revise my investment thesis due to the low iron ore price.
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Summary
- Oil prices continue in a seeming free fall.
- At prices below $75 it becomes uneconomic to drill in key plays.
- Lower drilling will see contract drillers take it on the chin.
- But less drilling will bring higher prices farther out.
- Oil producers already discount lower prices in my view and there may be opportunities to enter if oil continues to slide.
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Summary
- The focus on the non-core assets are obscuring a very fast growing core business which has shifted from focusing on the "field" to "in the store.".
- GMO labeling trend is likely to improve the focus on food ingredients and further push consumers towards natural and organic products.
- As the company shifts towards the value-added products, margins should expand from low single digits towards the high single digits.
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Summary
- Civil rights groups ask FHFA to preserve Fannie and Freddie.
- The American Dream of Homeownership must be preserved for the middle class and minorities.
- Fannie and Freddie must be allowed to rebuild capital.
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Summary
- United Therapeutics sold off from a high level after reporting a strong quarter that marginally missed consensus sales expectations.
- More important is the good news that the company foreshadowed on its conference call.
- UTHR is an unusually low P/E stock given its high historical growth rates and prospects for strong growth in the next few years.