Northrop Grumman: A Superior Long-Term Investment [View article]
Goldman is out with upgrades for the defense contractors: Northrop Grumman (NOC) is taken to Buy from Neutral (PT, $95) as it transitions to "a consistent performer with above average margins" and is now "arguably the most shareholder-friendly defense prime" (I, II); Lockheed Martin (LMT) is "in the sweet spot of Pentagon priorities" and lands on the coveted Conviction Buy list with a PT of $127; Raytheon (RTN) gets a Neutral from Sell bump (PT, $70) as Goldman "underestimated the multiple the market would pay for cash generation and dividend yield." LMT +2% premarket, NOC +1.34% premarket
Northrop Grumman: A Superior Long-Term Investment [View article]
Chasingalpha,
NOC largest customer by far is the US government. They have made strides to diversify however the US government will always be their largest customer due to the nature of their products. NOC will be allowed to export some technology to US allies however it will be a small amount of future revenue.
My estimate above takes into account for the sequester which I figure will cause revenues to be flat for the next two years. With the US economy rebounding and the US treasury collecting higher tax receipts the need for more drastic cuts has been mitigated. Remember politicians get re-elected based on how many jobs they bring back home. Cutting well paying defense jobs is not high on any politicians wish list regardless of which political party they belong to. Thanks for reading and commenting.
DirecTV: One Of My Favorite Long-Term Buys [View article]
btmfdr,
This comment is addressed to you. Since you called the author out stating "Please go back to Technical Analysis 101" and that DTV won't be seeing $60 anytime soon. In light of this weeks wonderful events, I believe an apology is due.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
Shourey,
The underperformance experienced by XOM holders is due to the XTO acquisition and the subsequent fall in commodity prices. That being said we have seen natural gas prices perk up considerably (see chart in linked XOM article) along with strong downstream profits. Crude has been weak however the company has some new projects coming online such as the Kearl Canadian oil sand play that just went operational.
In that time frame XOM continued to buy down shares and raise dividends. I am bullish on them for the next five years and expect them to outperform the market. Thanks for reading and commenting.
Bristol-Myers Has The Future Of Oncology Therapies [View article]
Matt,
Nice article. I am long BMY since last summer when it sold off on the news of the discontinuation of its HCV compound. I minor flaw I noticed in the article. In the last paragraph you mentioned earnings growth to $19.5 billion. Did you mean revenue growth instead?
Using The Recent Decline To Enter Into A Long Position In IBM [View article]
Bahamas1,
The miss was a temporary blip. I get a kick out of all the so called experts advising not to buy IBM when the best in the world has clearly articulated his position. Buffett has purchased a huge stake in the company and continues to add. His average price was $170 not far from where it is currently trading. As of last quarter he was continuing to add to his position. That's good enough for me. Thanks for commenting.
Using The Recent Decline To Enter Into A Long Position In IBM [View article]
IBM (IBM +0.8%) is raising its quarterly dividend by $0.10/share, or 12%, to $0.95/share, and increasing its buyback authorization by $5B to $11.2B. Big Blue's yield is now at 1.9%, and its buyback authorization is now good for repurchasing 5.1% of shares at current levels. IBM carried out $2.6B in buybacks in Q1 - its EPS miss for the quarter would've been much worse without them. The company notes it has raised its dividend 18 years in a row and lowered its share count by a third since 2000, and says it expects to request another authorization at its Oct. board meeting.
IBM continuing to deliver dividends to shareholders and more importantly significant buybacks. The company methodically plows money into buybacks which will benefit shareholders in the long run. Great news.
Exxon Mobil: How Superior Allocation Of Capital Will Lead To Outsized Future Gains [View article]
Alvin,
You have given them wise advice and yet they choose to ignore it. There was an article in Bloomberg recently that showed the top 5 companies in the world based on market cap since 2000. XOM was on the list for every year and most years it was number one whereas the rest of the time the names fluctuated on and off the list. This speaks to XOM staying power and consistent excellence. Thanks for reading and commenting.
An Ideal Company By Warren Buffett's Standards [View article]
Gregory,
EXPD is an excellent well run company that I have been watching for the last couple of years. The company has consistently traded at a higher multiple than the market making it difficult for a long term value investor to eneter into a position. The company is over exposed to foreign trade especially to Asia. Unfortunatly trade has been sluggish as witnessed by EXPD and Fed Ex.
If the company misses earnings and makes a new low perhaps then it will be time to enter into a position but for now with global trade so sluggish I will pass. Great article and thanks for sharing.
a fair summation of whats going on with XOM. I noticed you focused on its upstream business yet failed to mention its natural gas component which makes up roughly half of its upstream revenue. With the siginificant jump in nat gas prices recently along with upcoming LNG terminals, XOM should mitigate this problem in the near future. For a more in depth discussion on the natural gas angle see http://seekingalpha.co...
I agree with the team that XOM is a fabulous capital allocater. Many on this site have taken management to task for not paying out higher dividends. In my opinion the current path is the best.
Bristol-Myers Squibb Offers A 4% Yield With Significant Upside [View article]
Combining Gilead's (GILD) sofosbuvir and Bristol-Myers Squibb's (BMY) daclatasvir cures 100% of hepatitis C patients in 12 weeks (including those who failed treatment with Vertex's (VRTX) Incivek and Merck's (MRK) Victrelis) and looks to be a better treatment option for those with genotype 3 than a combo of sofosbuvir and another GILD drug ledipasvir. The problem: "GILD very clearly wants to develop in-house," one clinician tells Bloomberg.
BMY looks to have a promising Hep C drug. Looks like the Hep C writedown may have been too hasty.
Exxon Mobil: How Superior Allocation Of Capital Will Lead To Outsized Future Gains [View article]
Following months of delays and amid rising costs, Exxon Mobile (XOM) has finally started output at its C$12.9B ($12.7B) Kearl oil sands project in Alberta in Canada. The facility will produce 110,000 bpd of "resource" in its initial phase this year and 4.6B barrels over the next four decades. Kearl is operated by Exxon unit Imperial Oil
This is a major project that will help boost revenues and the bottom line.
Northrop Grumman: A Superior Long-Term Investment [View article]
Nice to see Goldman agree with my thesis.
Northrop Grumman: A Superior Long-Term Investment [View article]
NOC largest customer by far is the US government. They have made strides to diversify however the US government will always be their largest customer due to the nature of their products. NOC will be allowed to export some technology to US allies however it will be a small amount of future revenue.
My estimate above takes into account for the sequester which I figure will cause revenues to be flat for the next two years. With the US economy rebounding and the US treasury collecting higher tax receipts the need for more drastic cuts has been mitigated. Remember politicians get re-elected based on how many jobs they bring back home. Cutting well paying defense jobs is not high on any politicians wish list regardless of which political party they belong to. Thanks for reading and commenting.
DirecTV: One Of My Favorite Long-Term Buys [View article]
This comment is addressed to you. Since you called the author out stating "Please go back to Technical Analysis 101" and that DTV won't be seeing $60 anytime soon. In light of this weeks wonderful events, I believe an apology is due.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
Agreed. Notice how its broken above 90 recently. Perhaps a run to new highs is in short order. Thanks for reading and commenting.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
You are welcome.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
The underperformance experienced by XOM holders is due to the XTO acquisition and the subsequent fall in commodity prices. That being said we have seen natural gas prices perk up considerably (see chart in linked XOM article) along with strong downstream profits. Crude has been weak however the company has some new projects coming online such as the Kearl Canadian oil sand play that just went operational.
In that time frame XOM continued to buy down shares and raise dividends. I am bullish on them for the next five years and expect them to outperform the market. Thanks for reading and commenting.
Bristol-Myers Has The Future Of Oncology Therapies [View article]
Nice article. I am long BMY since last summer when it sold off on the news of the discontinuation of its HCV compound. I minor flaw I noticed in the article. In the last paragraph you mentioned earnings growth to $19.5 billion. Did you mean revenue growth instead?
Using The Recent Decline To Enter Into A Long Position In IBM [View article]
The miss was a temporary blip. I get a kick out of all the so called experts advising not to buy IBM when the best in the world has clearly articulated his position. Buffett has purchased a huge stake in the company and continues to add. His average price was $170 not far from where it is currently trading. As of last quarter he was continuing to add to his position. That's good enough for me. Thanks for commenting.
Using The Recent Decline To Enter Into A Long Position In IBM [View article]
IBM continuing to deliver dividends to shareholders and more importantly significant buybacks. The company methodically plows money into buybacks which will benefit shareholders in the long run. Great news.
Exxon Mobil: How Superior Allocation Of Capital Will Lead To Outsized Future Gains [View article]
You have given them wise advice and yet they choose to ignore it. There was an article in Bloomberg recently that showed the top 5 companies in the world based on market cap since 2000. XOM was on the list for every year and most years it was number one whereas the rest of the time the names fluctuated on and off the list. This speaks to XOM staying power and consistent excellence. Thanks for reading and commenting.
An Ideal Company By Warren Buffett's Standards [View article]
EXPD is an excellent well run company that I have been watching for the last couple of years. The company has consistently traded at a higher multiple than the market making it difficult for a long term value investor to eneter into a position. The company is over exposed to foreign trade especially to Asia. Unfortunatly trade has been sluggish as witnessed by EXPD and Fed Ex.
If the company misses earnings and makes a new low perhaps then it will be time to enter into a position but for now with global trade so sluggish I will pass. Great article and thanks for sharing.
Exxon Mobil Struggles For Growth [View article]
a fair summation of whats going on with XOM. I noticed you focused on its upstream business yet failed to mention its natural gas component which makes up roughly half of its upstream revenue. With the siginificant jump in nat gas prices recently along with upcoming LNG terminals, XOM should mitigate this problem in the near future. For a more in depth discussion on the natural gas angle see http://seekingalpha.co...
I agree with the team that XOM is a fabulous capital allocater. Many on this site have taken management to task for not paying out higher dividends. In my opinion the current path is the best.
Japan: Why The Yen Will Move Lower And The Nikkei Will Move Higher [View article]
The euro will be devalued but not until after the German election in September. The euro devaluation will be the next great trade.
Bristol-Myers Squibb Offers A 4% Yield With Significant Upside [View article]
BMY looks to have a promising Hep C drug. Looks like the Hep C writedown may have been too hasty.
Exxon Mobil: How Superior Allocation Of Capital Will Lead To Outsized Future Gains [View article]
This is a major project that will help boost revenues and the bottom line.