Company's eventually pay dividends when the management team feels that it can no longer generate growth beyond the rate of inflation and share buybacks no longer satisfy the demand of shareholders.
Buy Safeway, Even Though It Keeps Closing Stores [View article]
The stock already moved up by 52% which was anticipated for 2013, a correction after such a strong move should not be a surprise. Remember, I recommended the stock at $17 per share, so to me it does not seem like a massacre. Thanks for asking, I hope everyone who invested profited handsomely.
Buy Safeway, Even Though It Keeps Closing Stores [View article]
It's still trading within a range of $24-27 per share. The stock is trading at a fair valuation based on the model.
The recent earnings announcement wasn't enough to cause the price stock to trade even higher. Minor corrections are normal after earnings announcements. The stock hasn't seen any top line growth, but was at least able to improve its bottom line with better management and closing stores. If it can sustain flat-line revenue with bottom line growth, than it is still continuing to succeed at its transition from being a dominant grocer to a segmented grocer with its own niche. Basically, the company is fine.
Chipotle Mexican Grill: The High Multiples Are Justified [View article]
Sorry, but the stock is already trading very near my price target. I don't see what I have done wrong, I provided timely advice and my forecast was nailed with reasonable accuracy.
UnitedHealth Group: Put Healthcare Reform Into Perspective [View article]
Well Jacob, no one really has any clue as to how much of an impact ACA will have on profitability. We can get somewhat of a basic idea, but industry insiders are saying that some hospital are not admitting social security patience, and etc. The whole healthcare system will eventually readjust to become profitable otherwise there will be no health care insurers. For now, the health insurance companies are profitable and the new changes that will be implemented that I read about from the annual report will not have as substantial of an impact as I thought it could.
Up 10%, Are Stocks Now Too Dangerous To Hold? [View article]
I don't know Alan, I think that the vast majority of market participants are institutional. Therefore, I think the opportunity cost of not generating management fees by not participating is too large to stay on the sidelines. I think this time its different because the economy is structured to continually grow based on sound fundamentals (house hold growth, consumable income growth, stable GDP growth, low interest rates, reasonable inflation).
Up 10%, Are Stocks Now Too Dangerous To Hold? [View article]
Alan, your article was brilliant and rooted in economic reality. I liked how you described bond interest rates and how it would affect aggregate demand. Furthermore I was surprised by how you described higher bond yields would be symptomatic of an economic recovery rather than a deterrence to economic recovery. That was a well-stated argument, you further supported it by stating that both companies and government have locked in credit at extremely low interest rates. I would also like to add that prices are sticky in that prices tend to rise but they don't fall as fast in terms of CPI. That being the case, prices should sling shot higher between a period of contraction and growth. A moderate decline in prices followed by a period of rapid increases in prices. The economy is also being supported by stimulus from the Federal Reserve Bank which helps to increase the aggregate demand for stocks, eventually the increasing investment yields feed upon themselves and everyone eventually has to jump off the sidelines. Now is the perfect time for everyone to buy into the market because buyers will most likely be motivated by the fear of missing out on an even bigger move. I'm thinking of analyzing the price movement of stock after stocks have been able to close at new all-time highs, following an economic recession. Typical technical analysis points out that a break above a multi-year resistance level is usually followed by a significant rally. This would support the bullish technical argument. It's also nice to know that a lot of economic indicators are improving and that fears of an economic recession are relatively low.
Sell Home Depot: It Is A Bad Dow Stock [View article]
I did not give guidance on a year that ended. Notice how I labeled it January 31st 2014.
The annual report for 2011 states. FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 29, 2012
Therefore the annual report for 2012 would state For the fiscal year ended January 29, 2013
Following that the annual report for 2013 would state For the fiscal year ended January 29, 2014
Companies get desperate to grow. It doesn't matter what a company says in a press release. Google continues to roll out its product in one city after another, while putting on a false pretense that it won't.
Sell Home Depot: It Is A Bad Dow Stock [View article]
^Yes, but the company reports its EPS on January 31st, so its fiscal year for 2013 already ended. The report from Credit Suisse simplified it to 2013. But in reality fiscal year 2014 would be Jan 31st of next year. So when I talk the current fiscal year, I am talking about how it ends on Jan. 31st 2014. Which is why I label everything a year ahead.
I said developed markets, not the United States. Also, it means 20% of people don't have internet, I did not specify which demographic that may be.
Google would never have a salesperson show up at a door. Conversion rates could be high, as Cox and every other cable provider charges higher back-end rates after a period of 6-8 months.
Furthermore I have never seen Google fail at attracting users whether that be Google +, Gmail, YouTube, and etc.
Also, the total lack of confidence in older people learning new things is both a myth and under-estimation of intelligence. The oldest demographic in the United States has the most discretionary time and have the most money. This demographic has all the time in the world to learn about the internet, and gradually adopt internet usage habits.
It's not about being a junky, Google has a better product, and has a lot of advertising potential. It's not very hard to anticipate Google to succeed because Google almost never fails at creating user experiences worth buying.
Apple: Keep The Faith [View article]
Travelers Boasts Reasonable Yields [View article]
Travelers Boasts Reasonable Yields [View article]
Buy Safeway, Even Though It Keeps Closing Stores [View article]
Buy Safeway, Even Though It Keeps Closing Stores [View article]
The recent earnings announcement wasn't enough to cause the price stock to trade even higher. Minor corrections are normal after earnings announcements. The stock hasn't seen any top line growth, but was at least able to improve its bottom line with better management and closing stores. If it can sustain flat-line revenue with bottom line growth, than it is still continuing to succeed at its transition from being a dominant grocer to a segmented grocer with its own niche. Basically, the company is fine.
Chipotle Mexican Grill: The High Multiples Are Justified [View article]
UnitedHealth Group: Put Healthcare Reform Into Perspective [View article]
Flying High On Borrowed Wings [View article]
Up 10%, Are Stocks Now Too Dangerous To Hold? [View article]
Up 10%, Are Stocks Now Too Dangerous To Hold? [View article]
Sell Home Depot: It Is A Bad Dow Stock [View article]
The annual report for 2011 states. FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 29, 2012
Therefore the annual report for 2012 would state For the fiscal year ended January 29, 2013
Following that the annual report for 2013 would state For the fiscal year ended January 29, 2014
Which is how I presented the data originally.
Google Fiber Is A Growth Catalyst [View article]
Sell Home Depot: It Is A Bad Dow Stock [View article]
Advanced Micro Devices May Be A Steal In Early 2013 [View article]
Google Fiber Is A Growth Catalyst [View article]
Google would never have a salesperson show up at a door. Conversion rates could be high, as Cox and every other cable provider charges higher back-end rates after a period of 6-8 months.
Furthermore I have never seen Google fail at attracting users whether that be Google +, Gmail, YouTube, and etc.
Also, the total lack of confidence in older people learning new things is both a myth and under-estimation of intelligence. The oldest demographic in the United States has the most discretionary time and have the most money. This demographic has all the time in the world to learn about the internet, and gradually adopt internet usage habits.
It's not about being a junky, Google has a better product, and has a lot of advertising potential. It's not very hard to anticipate Google to succeed because Google almost never fails at creating user experiences worth buying.