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Brad Kenagy  

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  • Take A Hike! Part 2: Precision Castparts [View article]
    Thank you for the comment, I never said anything about PCP stopping its share repurchase program, I simply stated that they spend $1.6 billion on buybacks last year and $17 million on dividends. They had $1.24 billion in FCF over the last twelve months, for example they could double their dividend and FCF would drop by $17 million leaving $1.223 billion in FCF. This is a small amount and could easily be done.

    As I stated in the comment above: "However, its just puzzling as to why they have such a minuscule dividend that could easily be increase without hurting its M&A/repurchase/rei... objectives."
    Jun 17, 2015. 09:07 PM | Likes Like |Link to Comment
  • Take A Hike! Part 2: Precision Castparts [View article]
    @earthtodan Thank you for the comment. The last time the dividend was mentioned on a conference call was the third quarter of 2014, and Mark Donegan stated: "I never say never, I think that we’re firmly committed now to – M&A is always going to be our primary objective." I never said PCP was a bad company, they are a great company, however, its just puzzling as to why they have such a minuscule dividend that could easily be increase without hurting its M&A/repurchase/rei... objectives.

    Which is essentially what I said at the end of my article "management has given no indication that they will allocate more capital to dividends. "

    http://seekingalpha.co...
    Jun 17, 2015. 08:52 PM | Likes Like |Link to Comment
  • Take A Hike! Part 2: Precision Castparts [View article]
    Share buybacks increase EPS all else being equal.

    For example: Company XYZ has an EPS of $1/share and trades at $10/share. Which equals a PE of 10.

    All else being equal if the company repurchases stock and EPS increases to say $1.25/share and you apply the same PE multiple the stock is trading at of 10, that gives you a price of $12.5.

    Does not always work that way, just an example to show how it works in theory.

    Hope that helped some.
    Jun 17, 2015. 08:05 PM | Likes Like |Link to Comment
  • Take A Hike! Part 2: Precision Castparts [View article]
    For example in the case of PCP they bought back nearly $1.6 Billion in stock and paid just under $17 million in dividends. Why even have such a minuscule dividend if there is no barely any hope of a dividend increase?
    Jun 17, 2015. 08:02 PM | 1 Like Like |Link to Comment
  • Take A Hike! Part 2: Precision Castparts [View article]
    Robyn, Thank you for the comment. I did not have a chance to reach out yet, I am planning an article around any responses from any of the three stocks I am writing about if/when I do write them.
    Jun 17, 2015. 08:00 PM | Likes Like |Link to Comment
  • Debt Ratios And Pension Ratios: Connecting The Dots Between Them [View article]
    Other forms of compensation are used rather than pensions. For example, many Tech companies have stock based compensation plans.
    Jun 15, 2015. 04:49 PM | Likes Like |Link to Comment
  • Debt Ratios And Pension Ratios: Connecting The Dots Between Them [View article]
    I think you misread my post, companies that DO NOT have pensions on their balance sheet OUTPERFORMED those companies that had pensions on their balance sheet.
    Jun 15, 2015. 03:04 PM | Likes Like |Link to Comment
  • Debt Ratios And Pension Ratios: Connecting The Dots Between Them [View article]
    Great article on debt and pensions. Earlier this years I wrote an article on Pensions for companies in the Dow. I found that companies with a low pension/gross profit ratio significantly outperformed companies that had a high pension/gross profit ratio.

    -The worst performing group was those companies that had a high pension ratio and declining gross profit.

    -In addition, I found that companies that did not have a pension plan significant;y outperformed those that did.

    http://seekingalpha.co...
    Jun 14, 2015. 04:51 PM | Likes Like |Link to Comment
  • Dividend-Paying Stocks: Straw House In Market Storm [View article]
    @Gardener, not all of us DGI'ers are like you described. For example, my DG research service focuses on companies with Dividend Growth, Capital Appreciation Potential, Dividend Safety, and valuation is a big part as well. I stress test selections to make sure the dividend can still grow or be maintained during adverse market conditions.

    http://bit.ly/1QQ1Yuq
    Jun 11, 2015. 07:30 PM | Likes Like |Link to Comment
  • Dividend-Paying Stocks: Straw House In Market Storm [View article]
    Good article showing the internals of the market are getting uglier even with the market still near its highs. Not all dividend stocks are overvalued, my research service on Seeking Alpha finds stocks that are:

    -Undervalued
    -Fundamentally strong
    -Significant dividend growth potential
    -A dividend that is stress tested to make sure they can maintain or grow their dividend during adverse market conditions.

    http://bit.ly/1MKo2WI
    Jun 11, 2015. 12:11 AM | Likes Like |Link to Comment
  • eBay's Marketplace Business Looks Unappealing [View article]
    @RNL they have not announced the date yet. All they have said is that the split will be completed by the end of the 3rd quarter.
    Jun 10, 2015. 10:18 AM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Thank you for the comment, I am glad you enjoyed the article. You bring up some great points about eBay being a cash flow machine. As long as they continue buying back stock and are trying to turn the main marketplace business around eBay Inc. could have a place in a portfolio for investors who are willing to have less growth than PayPal.
    Jun 9, 2015. 05:20 PM | Likes Like |Link to Comment
  • eBay's Marketplace Business Looks Unappealing [View article]
    @MNSW, i'm new to eBay.
    Jun 9, 2015. 05:17 PM | 1 Like Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    Here is what is would look like:

    PRESPLIT:

    Shares Company Price Total
    15 eBay 60.5 907.5
    42 Western Union 21.6 907.2

    POST SPLIT- assuming 1/1 Ratio of ebay/PayPal

    Shares Company Price Total
    15 eBay 30.25 453.75
    15 Paypal 30.25 453.75
    42 Western Union 21.6 907.2


    So an investor would have the option to keep shares of eBay inc or sell them right away and hold onto shares of PayPal along with the short position in WU. Also, depending on how bearish someone is on WU, they could sell part of their WU position to get it down to a 50/50 dollar value with the remaining shares of PayPal assuming the eBay stake is sold right after the split.
    Jun 9, 2015. 04:06 PM | Likes Like |Link to Comment
  • Mobile Payments: Why eBay Is Worth Buying Now Over Western Union [View article]
    This is simply 50% long eBay, and 50% short WU, you are making it more complicate than it needs to be.

    You are are correct that if you short WU, the investor would be responsible for the dividend.
    Jun 9, 2015. 03:50 PM | Likes Like |Link to Comment
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