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David Alton Clark

 
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  • Kinder Morgan: One's Bark Is Always Worse Than One's Bite
    Editors' Pick • Tue, Jun. 10 KMI, KMP 54 Comments

    Summary

    • Recently, it has been stated Kinder Morgan’s Trans Mountain Pipeline expansion has become the new Keystone XL pipeline. This couldn’t be further from the truth.
    • There are major differences between the two endeavors and some recent happenings have been wildly misconstrued. It is the equivalent of comparing apples to oranges.
    • I will review the current status of the Trans Mountain Pipeline expansion. Further, I will explain why there is no comparison between it and the Keystone XL Pipeline.
  • My Pair Trade, Long Apple/Short BlackBerry, Is Up 100%, Has The Worm Turned?
    Mon, Jun. 9 BBRY, AAPL 96 Comments

    Summary

    • In January of 2013 I saw similarities between the stock of Apple and BlackBerry even though they were at opposite ends of the spectrum.
    • At that time, I suggested a pair trade was in order. I stated to go long Apple and short BlackBerry.
    • The trade has returned nearly 100% with both stocks performing exactly as I presumed.
    • My contrarian instincts tell me the worm may have turned once again. In this article, I will lay out my thoughts on the trade and names going forward.
  • General Electric: Strap Yourselves In And Prepare For Liftoff
    Sun, Jun. 8 GE 123 Comments

    Summary

    • The General Electric Aviation management team was interviewed at the Deutsche Bank Global Industrials and Basic Materials Conference recently.
    • The team had some interesting information regarding General Electric’s Aviation Division.
    • In this article, I will cover the major highlights as I see them and come to a conclusion regarding GE's future prospects.
  • AT&T: The Good, The Bad And The Ugly Truth
    Fri, Jun. 6 DTV, TMUS, T 22 Comments

    Summary

    • There are numerous positive and negative developments with regard to the current state of affairs for AT&T.
    • This has caused a tremendous debate to ensue regarding the company's future.
    • I have employed the use of Benjamin Franklin's famed decision-making technique to analyze the current state of affairs to come to a conclusion.
  • Bank Of America: You Can't Keep A Good Bank Down
    Fri, Jun. 6 BAC 34 Comments

    Summary

    • Bank of America has been beaten down by a series of bear attacks questioning the company's growth prospects and controversy over its legal issues.
    • Unwittingly or not, this has created an excellent buying opportunity for investors.
    • In this article, I will lay out the evidence that Bank of America is currently a great buying opportunity.
  • Kinder Morgan: Huge New $6.7 Million Insider Buy - And It's Not Kinder
    Thu, Jun. 5 KMI, KMP 67 Comments

    Summary

    • Apparently, Kinder Morgan isn’t kidding when stating the company’s watchwords are "Run by shareholders, for shareholders."
    • Chairman Richard Kinder’s share count is now somewhere in the vicinity of 250 million shares which amounts to approximately 25% of KMI.
    • A significant number of insider buys have occurred within the last 6 months at about the current share price level. Kinder has been the primary buyer during this period.
    • Yet, now a different executive has put his money where his mouth is. In this article we will attempt to determine just how much weight we should give these purchases.
  • Kinder Morgan: The Worm Has Definitely Turned
    Editors' Pick • Wed, Jun. 4 KMP, KMI 81 Comments

    Summary

    • Kinder Morgan has been beaten down by a series of bear attacks questioning the company's growth prospects and controversy over its governance structure.
    • Unwittingly or not, this has created an excellent buying opportunity for dividend and income investors.
    • A reversal of fortune has occurred. In this article, I will lay out the evidence in support of this claim.
  • Ford: Trucking Its Way To $40 By 2015?
    Tue, Jun. 3 F 74 Comments

    Summary

    • Ford is heavily investing in the future which has pressured the bottom line near-term. Alan Mulally stepping down hasn't helped the stock either.
    • Even so, it looks like Ford may be back on track by the end of the year with the launch of the new aluminum truck.
    • Ford has solid fundamentals and appears undervalued currently. With a substantial margin of safety in hand, the stock seems like a great buying opportunity at this level.
    • Ford pays a dividend with a yield of 3% and has significant upside potential. An excellent buying opportunity presents itself for savvy investors.
  • AT&T: A Golden Dividend Opportunity Is Never Offered Twice
    Tue, Jun. 3 DTV, T 72 Comments

    Summary

    • AT&T now has the highest dividend yield of all the DOW Blue Chip stocks and is presently trading at a discount to its peers and the industry.
    • The downtrend in the stock has reversed marked by the golden cross. This has created a buying opportunity. The company has several catalysts which should spur the stock higher.
    • Dividend investors should strike while the iron is hot. AT&T is a model stock for income investors providing both a 5% yield and the potential for capital gains.
  • General Electric: The Good, The Bad And The Ugly Truth
    Editors' Pick • Sun, Jun. 1 ALSMY, GE 70 Comments

    Summary

    • There are numerous positive and negative developments with regard to the current state of affairs for General Electric.
    • This has caused a tremendous debate to ensue regarding the company's future.
    • I have employed the use of Benjamin Franklin's famed decision-making technique to analyze the current state of affairs to come to a conclusion.
  • Bank Of America: About To Pull A Rabbit Out Of Its Hat?
    Sun, Jun. 1 BAC 46 Comments

    Summary

    • I have been pounding the table as of late stating that the positives far outweigh the negatives regarding the bank’s future prospects.
    • Nonetheless, I have encountered significant resistance to my assertions and been ridiculed for being a “permabull” regarding the stock. This couldn't be further from the truth.
    • My latest intuition tells me Bank of America is about to pull the proverbial ‘rabbit ‘out of its hat and on the cusp of a substantial rally. Several key indicators.
  • Kinder Morgan: About To Pull A Rabbit Out Of Its Hat?
    Fri, May. 30 KMI, KMP 127 Comments

    Summary

    • Buried deep within a response the company filed with regulators this month was a design for the company’s plan to expand the Trans Mountain pipeline.
    • The expansion would increase capacity making room for another additional 240,000 barrels per day throughput of the Edmonton-to-Vancouver oil transportation pipeline.
    • This is one piece of the puzzle regarding a $5.4 billion plan to increase capacity of the Northwestern oil pipeline to 890,000 barrels per day throughput from 300,000.
    • Nonetheless, the project is not without its detractors and obstacles. A significant amount of local opposition is mounting.
  • General Electric Has Bigger Fish To Fry
    Wed, May. 28 ALSMY, GE 28 Comments

    Summary

    • There has been a tremendous amount of hype recently regarding General Electric’s pursuit of the French company Alstom’s assets.
    • So much so, the magnitude of the Alstom deal’s influence on General Electric’s bottom line has been blown out of proportion.
    • Whether General Electric seals the deal for Alstom’s assets or not, it’s a win-win for current shareholders and this article reveals the reasons why.
  • Kinder Morgan: Deconstructing The Pros And Cons
    Tue, May. 27 KMP, KMI 25 Comments

    Summary

    • Kinder Morgan, a sponsored governance model MLP, is a complex and multi-faceted investment vehicle.
    • Many highly sophisticated investors are even baffled by the nuances and tax implications of an investment in Kinder Morgan.
    • This has led to much debate regarding the benefits and drawbacks of making an investment in Kinder Morgan.
    • This article will endeavor to crystallize the pros and cons of making an investment in Kinder Morgan.
  • Bank Of America: The Good, The Bad, And The Ugly Truth
    Editors' Pick • Sun, May. 25 BAC 58 Comments

    Summary

    • There are numerous positives and negatives in regards to the current state of affairs for Bank of America.
    • This has caused a tremendous debate to ensue regarding the bank's future.
    • I have employed the use of Benjamin Franklin's famed decision-making technique to analyze the current state of affairs and come to a conclusion.
  • Kinder Morgan Has An Ace In The Hole
    Editors' Pick • Sat, May. 24 KMI 137 Comments

    Summary

    • There has been significant controversy regarding Kinder Morgan’s Sponsored MLP governance model.
    • The crux of the concern is the Sponsored MLP governance model requires 50% of distributable cash flow to be delivered to KMI via IDRs.
    • Some have suggested that Kinder Morgan should do away with the need for IDRs and restructure itself to emulate the Enterprise Products Partners L.P. model.
    • Restructuring Kinder Morgan’s current Sponsored MLP governance model to emulate Enterprise Products Partners’ model sounds good, but there is one big catch.
  • Bank Of America: Don't Be Bamboozled, Plenty Of Meat Left On This Bone
    Fri, May. 23 BAC 22 Comments

    Summary

    • Bank of America has had everything and the kitchen sink thrown at it over the past month.
    • The stock has been in a downtrend as of late and is now just 20% above its 52 week low, yet signs of a bottom have materialized.
    • The relative strength the stock has shown in the face of these polemical points of view is telling of a turnaround.
    • With the bank trading at historic lows and a substantial discount to book value, the margin of safety regarding starting a position at this time is favorable.
  • General Electric's Grand Illusion
    Fri, May. 23 ALSMY, SIEGY, GE 56 Comments

    Summary

    • The Alstom deal has grinded to a halt and remains mired in controversy as France awaits a bid from Germany's Siemens regarding the purchase of Alstom.
    • General Electric says it has agreed to extend its bid for Alstom's power business until June 23rd from June 2nd at the request of the French government.
    • The French government has offered significant resistance to General Electric's proposal. General Electric says it is moving the deadline to "facilitate ongoing discussions with the government."
    • At this point, it seems France would rather surrender Alstom's assets to Siemens for a discount, than accept General Electric's bid with recently added sweeteners.
  • Kinder Morgan: Be Careful What You Wish For
    Thu, May. 22 EPB, KMP, KMR 104 Comments

    Summary

    • There has been significant controversy regarding Kinder Morgan’s Sponsored MLP governance model.
    • The crux of the concern is the Sponsored MLP governance model requires 50% of distributable cash flow to be delivered to KMI via IDRs.
    • Some have suggested that Kinder Morgan should do away with the need for IDRs and restructure itself to emulate the Linn Energy model.
    • After an in-depth review of the facts, restructuring Kinder Morgan’s current Sponsored MLP governance model to a Limited Liability Company is not warranted or prudent.
  • Kinder Morgan: The Good, The Bad And The Ugly Truth
    Editors' Pick • Wed, May. 21 EPB, KMP, KMR 85 Comments

    Summary

    • A tremendous amount of controversy and criticism regarding the structure of Kinder Morgan's general partner and limited partners’ relationship have reached a fever pitch.
    • The issue some believe is the general partner, KMI, uses incentive distribution rights, or IDRs, to unfairly siphon distributable cash flow from the company’s limited partner.
    • The numbers tell a different story. KMI has identified capital expansion opportunities for KMP which have increased distributions from $70 million to over $4 billion over the last 16 years.
  • ConocoPhillips: An Income Production And Capital Gains Opportunity Materializes
    Tue, May. 20 COP 24 Comments

    Summary

    • ConocoPhillips stock has been on a tear as of late.
    • Nonetheless, the run in the stock may not be done based on an array of positive catalysts going forward.
    • The stock is an excellent total return play for dividend investors based on the potential for both capital appreciation and income production.
  • Kinder Morgan: This High Dividend Yield Juggernaut Is Poised For Growth
    Editors' Pick • Mon, May. 19 EPB, KMP, KMR 48 Comments

    Summary

    • Kinder Morgan has delivered consistent annualized distribution growth for nearly 20 years.
    • Kinder Morgan has the potential for remarkable organic growth due to a profound revitalization of North American oil and gas production.
    • Kinder Morgan appears well positioned to provide dividend investors with an opportunity for both capital appreciation and income production. Nevertheless, downside risks are present.
    • Based on an in-depth analysis of current positive catalysts and potential downside risks the risk/reward equation appears favorable.
  • Bank Of America: Buying Opportunities And Bad News Go Hand In Hand
    Sat, May. 17 BAC 23 Comments

    Summary

    • There is no doubt Bank of America has had its fair share of bad news as of late.
    • The stock is down 20% in a few short weeks based on negative developments.
    • The fact the bad news is primarily associated with the past, transitory in nature and not related to the bank’s core fundamentals has created an excellent buying opportunity.
    • Presently, a significant margin of safety exists for long-term investors looking for a value.
  • General Electric: The Best Investment Is Often The One You Don't Make
    Editors' Pick • Sat, May. 17 ALSMY, SMAWF, GE 119 Comments

    Summary

    • The French government late Wednesday issued a decree giving itself the power to block the Alstom deal.
    • News just hit the wires Friday General Electric is sending a top executive to Paris to save the deal.
    • At this point, I have turned sour on the deal. I see a quagmire in the making. Even so, General Electric still remains in the power position.
    • Deal or no deal, I submit General Electric is a buy for a multitude of reasons.
  • Apple: The Best Of Both Worlds Awaits Savvy Investors
    Fri, May. 16 AAPL 37 Comments

    Summary

    • Apple is making all the right moves to increase shareholder wealth.
    • Several recent catalysts and developments bode well for price appreciation.
    • The stock provides an excellent total return play opportunity for dividend investors.
    • The stock is currently undervalued, technically sound and provides an opportunity for both capital appreciation and income production.
  • Bank Of America: The Crowd Is Dead Wrong
    Thu, May. 15 BAC 104 Comments

    Summary

    • The chorus of negative articles, news and downgrades regarding Bank of America has reached epic proportions.
    • I surmise the weak hands have folded at this point with the stock down substantially and trading just above long-term support.
    • Bank of America is massively oversold, vastly undervalued and several catalysts for upside have emerged.
  • AT&T: You Ain't Seen Nothing Yet
    Wed, May. 14 CMCSA, DTV, TWC 52 Comments

    Summary

    • AT&T is making all the right moves to increase shareholder wealth.
    • The rumored DirecTV purchase has many positives, yet negatives do exist.
    • The stock is a buy for dividend investors due to substantial upside potential providing the opportunity for capital appreciation.
    • The stock appears undervalued versus peers and the industry.
  • Facebook: There's A Zucker Born Every Minute
    Wed, May. 14 FB 39 Comments

    Summary

    • Facebook shares have taken a beating as of late along with a majority of the rest of the high flying momentum cohort.
    • Facebook may be the instrument of its own destruction by using stock rather than cash to acquire other companies.
    • According to a recent report Facebook’s active users have dropped just as the company moved into heavy monetization mode.
    • I submit the recent spending spree combined with a significant ratcheting up of monetization and insider selling signals the beginning of the end for Facebook.
  • Bank Of America: Don't Be Fooled By The Negative Noise
    Tue, May. 13 JPM, BAC 21 Comments

    Summary

    • The wall of worry regarding Bank of America’s stock continues to grow.
    • Downgrades and a myriad of negative articles were posted Monday and over the past week.
    • The stock has reached oversold status in the face of the extreme negativity.
    • The fact the stock was up Monday in the face of such pessimism is a testament to the stock’s undervalued nature.
  • Anheuser-Busch InBev: A High Dividend Yield Buying Opportunity Presents Itself
    Tue, May. 13 BUD 26 Comments

    Summary

    • Anheuser-Busch InBev delivered strong earnings results.
    • InBev delivered solid volume performance in the company’s top four markets. This performance coupled with robust revenue per hectoliter led to strong top-line growth.
    • Capital appreciation will be driven by an improving global economy and $4 billion in capital expenditures in support of brands.
    • A company offering the opportunity for capital appreciation and high dividend yield growth is a rare find.
  • Kinder Morgan: Seeing The Forest Through The Trees
    Sun, May. 11 ENB, KMI 25 Comments

    Summary

    • Kinder Morgan is well positioned to benefit from a North American oil and gas renaissance.
    • A recent public relations blunder has masked the company’s evident upside potential.
    • This has created a major buying opportunity for dividend investors on the hunt for capital appreciation and income production.
  • General Electric: Panoply Of Positives Loom For Dividend Investors
    Sat, May. 10 GE 21 Comments

    Summary

    • General Electric is making all the right moves to increase shareholder wealth.
    • Several recent catalysts and developments bode well for price appreciation.
    • The stock is a great buy for dividend investors due to substantial upside potential.
    • The stock is currently undervalued on a relative basis and technically sound.