First of all, thank you very much for your comments. They are all really interesting and go to the point: more research is needed in order to buy this type of stocks. I decided to write this article because I read another one related to these same shares pinpointing out the dividend. ShawnG: I absolutely agree: "BDC's are the new bank for business loans. " Michael123a: I know the QR is not that important for a retail company such as Roundy's because they can easily convert their products into cash, however the Current Ratio is not that great either and the debt is still very high if you compare it with competitors. surfgeezer: perfect summary. Thanks.
PetMed Express: Another High-Dividend, No-Debt Company [View article]
That's the question. I think it can. At the end, Amazon will have to make money and get a "normal" P/E. Also, it's a niche industry and PETS have a lot of happy growing customers.
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Not really (I believe you meant negative correlation). Gold and the markets don´t keep a correlation within a small range, but it varies a lot. Check out the graphs here: http://bit.ly/Hip7Er On the other hand, it was just an example. You could use as many pairs as you want which make sense from a fundamental point of view. Thanks.
Thank you all for your comments. Really interesting. Just a quick note. Of course it´s a bond fund. I checked out all the positions before buying it. Beta is only .28. The interesting thing about this CEF is that somehow it behaves like a blue chip stock because of the leverage (as it´s said in the article). That is the reason it´s compared with JNJ. Being plain: JNJ is less risky than an average stock and ACG is more risky than a bond fund, so they meet in the middle.
Please, don't get stuck on that. The idea is that many investors have made a lot of money with Apple. As we don't know how the future is going to be, it makes sense to hedge the risk of lower growth, more competitors, etc. Or more important: to get some level of protection if the market goes down. Probably, Apple will revolutionize TV, or create something we are not able to think about, for this reason, the hedge could be just partial.
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ShawnG: I absolutely agree: "BDC's are the new bank for business loans. "
Michael123a: I know the QR is not that important for a retail company such as Roundy's because they can easily convert their products into cash, however the Current Ratio is not that great either and the debt is still very high if you compare it with competitors.
surfgeezer: perfect summary. Thanks.
PetMed Express: Another High-Dividend, No-Debt Company [View article]
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On the other hand, it was just an example. You could use as many pairs as you want which make sense from a fundamental point of view.
Thanks.
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