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Dave Dierking, CFA

 
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  • Earn A 9% Yield With This Covered Call ETF
    Tue, Aug. 19 HVPW, QYLD 7 Comments

    Summary

    • The Recon Capital NASDAQ 100 Covered Call ETF is the only ETF that utilizes a buy-write strategy based on the NASDAQ 100.
    • Since its inception this ETF has performed largely as would be expected - underperforming in a bull market while outperforming in a volatile or bear market.
    • While the asset base is still thin, assets have increased four-fold recently, indicating an increasing interest in options-based ETF investing strategies.
  • 3 Stocks That Have Experienced Big Dividend Cuts And Should Be Avoided
    Wed, Aug. 13 ACI, AVP, FTR 6 Comments

    Summary

    • These three companies cut dividends in order to save cash; and why I think they're unlikely to rebound any time soon.
    • All three are implementing cost cutting measures to save money, but declining revenues in challenging economic conditions limit any short-term upside.
    • Management has already cut the dividend in each case, but some are at risk for additional dividend cuts in the future.
  • Devon Energy Shares Are Particularly Attractive Following Recent Correction
    Wed, Aug. 13 DVN 9 Comments

    Summary

    • Devon Energy shares have enjoyed a robust year so far but a recent pullback from $80 to $74 presents a buying opportunity for astute investors.
    • Forecasted 2015 revenue and earnings growth from increased North American oil production as well as a divestiture of non-core assets should provide catalysts for a higher share price.
    • With a forward P/E of just 11 and a PEG ratio of 0.72, expansion of valuation multiples could provide additional fuel for a rise in the share price.
  • Bank Of America: Short-Term Obstacles Outweigh Long-Term Value
    Tue, Aug. 5 C, JPM, WFC 51 Comments

    Summary

    • The stock appears to be fundamentally undervalued but is going to have a difficult time moving up until it can determine the full impact of ongoing litigation and non-performing loans.
    • The $1.27B settlement related to Countrywide's "Hustle" program is a step in the right direction but there will likely be more fines on the way.
    • Legal issues have spilled over to the company's bottom line further limiting any short term upside in the stock.
    • Short term investors may want to consider a big bank alternative like Citigroup in the meantime.
  • iShares MSCI United Kingdom ETF: A Value Play With A 3% Dividend
    Thu, Jul. 31 EWU 1 Comment

    Summary

    • Despite struggles with the recovery in the Eurozone, the United Kingdom is on a more stable footing and represents solid value as an investment.
    • The iShares MSCI United Kingdom ETF is one of the largest region specific ETFs out there and represents the best choice for investment into the United Kingdom.
    • The region appears undervalued according to several valuation metrics including P/E, P/B and P/S. GDP quarterly growth has been solid while inflation has remained at bay.
    • Global diversification from several megacaps and a 3% dividend yield help cushion downside risk.
  • Casablanca Takes Control Of The Board: What's Next For Cliffs Natural Resources
    Tue, Jul. 29 CLF 22 Comments

    Summary

    • Casablanca Capital has succeeded in getting all six of its nominees elected to the Cliffs Natural Resources Board of Directors and now controls the majority of the Board's seats.
    • Casablanca Board nominee Lourenco Goncalves is almost certain to replace Gary Halverson as Cliffs CEO.
    • Casablanca will attempt to implement a multi-step plan that could include selling off international assets, closing the Bloom Lake facility and turning the company's North American assets into an MLP.
  • Cliffs Natural Reports Q2 Earnings While Preparing For The Big Proxy Showdown With Casablanca Capital
    Thu, Jul. 24 CLF 13 Comments

    Summary

    • Cliffs Natural reported 2nd quarter earnings Wednesday night and continued its recent theme of declining revenue due to iron ore price concerns and necessary capex cuts just to stay afloat.
    • Cliffs management is focusing on its July 29th proxy vote where it battles with Casablanca Capital over control of the Board of Directors and the future direction of Cliffs.
    • Cliffs management wants to continue its cost cutting strategy while Casablanca wants to divest itself of low performing assets in order to return capital to shareholders.
  • 3 High-Yielding MLP ETFs That Carry Below-Average Risk
    Wed, Jul. 23 AMLP, EMLP, MLPI 3 Comments

    Summary

    • MLP ETFs are growing in popularity, but their structure and interest rate-sensitivity make a lot of them especially risky.
    • Examining the types of partnership, the benchmark index and the portfolio composition helps identify lower-risk investments that can still earn a yield of 5% or more.
    • These three MLP ETFs focus largely on more conservative limited partnerships and/or midstream pipeline companies with a strong and steady dividend history.
  • 3 Reasons The Rally In Devon Energy May Continue
    Wed, Jun. 25 DVN 6 Comments

    Summary

    • Devon Energy has raced into the upper $70s recently but could be headed to at least $85 in the coming months.
    • Devon's focus on increased oil production thanks to its recent Eagle Ford purchase should help drive revenue and earnings growth going forward.
    • Devon could find itself tripling its oil production in the Eagle Ford by 2017.
  • Buy Brazil With The World Cup And Olympics Looming
    Thu, Jun. 12 EWZ, BRXX, BRAQ 4 Comments

    Summary

    • With the 2014 World Cup and the 2016 Summer Olympics coming, Brazil is poised to receive a boost to the country's economy and infrastructure.
    • Brazil's slow growth trajectory could accelerate if incumbent President Dilma Rousseff is defeated in the upcoming October election.
    • After dropping during the first quarter, Brazil ETFs have rallied since then and some are up almost 30% from 2014 lows.
  • PowerShares KBW High Dividend Yield Financial Portfolio ETF: Why Now Is The Time To Buy
    Thu, Jun. 5 SDY, SLY, SPY 1 Comment

    Summary

    • KBWD has underperformed most of the major indices recently, but now could be in a position to outperform.
    • KBWD currently compares favorably to several benchmark indices according to the price/earnings, price/book and price/cash flow valuation metrics.
    • With its heavy mortgage REIT concentration, KBWD should be able to benefit from the current low rate environment.
  • Is Cliffs Dying A Slow Death?
    Wed, May. 28 CLF 41 Comments

    Summary

    • Cliffs made an expected announcement of a $100M 2014 capex cut in an effort to navigate a low iron ore price environment and remain cash flow positive.
    • Cliffs may be at risk of breaching its debt covenants if iron price weakness continues.
    • Casablanca Capital is continuing to put pressure on Cliffs to break up the company in order to extract additional shareholder value.
    • At this point, Cliffs' stock has become almost a pure play on iron ore prices.
  • The Battle For ETF Supremacy: Vanguard Ready To Take On BlackRock
    Wed, May. 21 STT, VOO, BLK 4 Comments

    Summary

    • Vanguard is currently the third-largest ETF provider ($360 billion in assets under management) behind BlackRock ($683 billion) and State Street ($386 billion).
    • Vanguard has dominated ETF cash flows thus far in 2014, attracting over $18 billion and almost 90% of all new ETF dollars.
    • ETFs that were created for people who wanted to trade more frequently are now attracting long-term passive investors who want to take advantage of their low cost and flexibility.
  • Earn A 9% Yield With This MLP ETF
    Wed, May. 7 AMLP, YMLP, MLPY 23 Comments

    Summary

    • ETFs focused on investing in master limited partnerships are increasing in number and many offer yields of 5% or more.
    • As the only MLP ETF indexed to Solactive's High Income MLP Index, Yorkville High Income MLP ETF is currently the highest yielding MLP ETF with a yield of around 9%.
    • This ETF is structured as a C corporation which carries with it some unique tax and accounting rules that investors need to be familiar with.
  • 3 High Dividend Technology ETFs That Deserve Your Attention
    Mon, May. 5 IPK, SMH, TDIV Comment!

    Summary

    • The technology sector is experiencing one of the highest dividend appreciation rates in the market currently.
    • Some tech ETFs are now offering yields that are higher than the S&P 500.
    • This article profiles one technology index ETF, one sector-specific ETF and one international technology ETF.
  • 3 ETFs To Replace PIMCO Total Return In Your Portfolio
    Wed, Apr. 30 AGG, BIV, LAG 2 Comments

    Summary

    • PIMCO Total Return managed by bond king Bill Gross has seen almost $50 billion leave his fund as a result of recent poor performance.
    • Complicating matters, Mohamed El-Erian, Gross's co-chief investment officer, resigned unexpectedly recently fueling speculation that he and Gross were at odds.
    • Investors looking for a change can find ETFs with similar risks and compositions that have performed better and maintain lower expense ratios.
    • ETFs from Barclays, Vanguard and iShares are profiled as alternatives to PIMCO Total Return.
  • Cliffs Natural Resources: Deconstructing The Q1 Earnings Report
    Tue, Apr. 29 CLF 10 Comments

    Summary

    • Cliffs first quarter earnings delivered results that were far below analyst estimates on both earnings and revenues.
    • Revenues from both coal and iron ore were down significantly in the United States, Canada and the Asia Pacific regions.
    • Cliffs reiterated 2014 guidance, but actual results will largely be determined by the state of iron ore prices.
    • Cliffs continues with its capital expenditure reduction program that it has been executing for the last few quarters.
    • Planned infrastructure spending in China and Canada along with the company's supply deal with ArcelorMittal could improve future results.
  • After The Split, Is Apple Ready To Become A Dow Stock?
    Thu, Apr. 24 CSCO, INTC, MSFT 41 Comments

    Summary

    • Apple may have removed the biggest hindrance to joining the Dow Jones Industrial Average - its stock price - by announcing the 7-for-1 stock split.
    • CEO Tim Cook said that the split was done “to make Apple stock more accessible to a larger number of investors.”.
    • After the split, Apple would maintain a middle of the pack weighting in an updated Dow Jones index.
    • Cisco, Microsoft and Intel could be prime candidates for removal from the index.
  • 3 Dividend ETFs That Belong In Every Portfolio
    Wed, Apr. 23 CSCO, DVY, ETR 4 Comments

    Summary

    • Dividend paying stocks have outperformed the broad market year-to-date as the market's preference shifts from growth to value.
    • Many dividend ETFs currently yield 3% or more compared to the S&P 500's current yield of 1.86%.
    • Many dividend ETFs are becoming more broadly diversified as dividend growth rates are being led by gains in financials and technology.
  • Cliffs Natural Resources: The Good, The Bad And The Ugly
    Tue, Apr. 22 CLF 15 Comments

    Summary

    • The company's focus on managing expenses and delaying less cost-effective projects could help it ride out the current economic turmoil.
    • Removal from the S&P 500 and delisting from Euronext Paris could help put pressure on the stock price through the end of April as index funds and shareholders unwind positions.
    • Slowing economic growth in China, coupled with depressed iron ore prices will continue to be the dominant factors in Cliffs' near-term business performance.
    • The current management battle with Casablanca Capital will continue to distract Cliffs as it tries to take over the board of directors and implement its own practices.
  • Devon Energy's Canadian Asset Sale Another Savvy Management Move
    Wed, Apr. 9 CNQ, DVN 6 Comments

    Summary

    • Devon's decision to sell Canadian natural gas assets to pay for the Eagle Ford acreage from GeoSouthern Energy is a savvy management move.
    • The Canadian asset sale continues Devon's transformation from a natural gas focused company to one that expands its oil production business.
    • Despite its growth focus, the company remains undervalued relative to peers and could very well be headed to $80.
  • The WWE Network Revamps The Pay-Per-View Revenue Model And Could Add Millions To The Company's Top Line
    Fri, Mar. 14 DTV, WWE 14 Comments

    Summary

    • The launch of the WWE Network could expand the company's $80 million annual pay-per-view figure to $300 million or more.
    • If revenue growth estimates are correct, it could inspire other pay-per-view producers like the UFC to launch their own networks.
    • Cable providers like DirecTV and Dish Network could take a hit to their bottom lines due to the potential loss of a revenue cash cow.
  • These 6 Stocks Already Yielding 3% Still Offer A Strong Growth Forecast
    Tue, Jan. 7 MCHP, WM, LO 5 Comments
  • 3 Ways To Play The Shale Oil Boom
    Tue, Jan. 7 APA, APC, CHK 1 Comment
  • 3 Dividend Growth Plays In Financials For 2014
    Tue, Jan. 7 BLK, USB, WFC Comment!
  • Cliffs Natural Resources: 4 Reasons Why One Of 2013's Biggest Losers Could Make A 2014 Rally
    Tue, Jan. 7 CLF 13 Comments
  • 5 Core Conservative Growth Stocks For A Retiree's Portfolio
    Dec. 19, 2013 DUK, PG, PFE 12 Comments
  • Sears: Land's End Spinoff Feels Like A Desperate Hail Mary
    Dec. 16, 2013 XRT, RTH, RETL 28 Comments
  • Devon Energy Positioning Itself For 2014 Breakout
    Dec. 15, 2013 XOP, FRAK, IEO 44 Comments
  • 3 Stocks With Solid Dividends That You Should Approach With Caution
    Dec. 3, 2013 T, SO, VIG 6 Comments
  • Banco Santander: Is The 7% Dividend Sustainable?
    Dec. 3, 2013 SAN 28 Comments
  • Bank Of America: Fully Valued At $15 Per Share
    Nov. 21, 2013 C, XLF, BAC 52 Comments