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David Alton Clark

 
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  • Ford: The Worm Has Definitively Turned
    Thu, Jun. 19 F 56 Comments

    Summary

    • Ford is investing heavily in its future. The company is in the midst of a historic number of new product launches and manufacturing capacity increase.
    • Many investors have been taking a wait and see approach up to this point. Unwittingly or not, this has created an excellent buying opportunity in the stock.
    • Nonetheless, I submit a reversal of fortune has occurred. In this article, I will make my case as to why the worm has definitively turned for the company.
  • Kinder Morgan: Too Hot To Handle?
    Editors' Pick • Thu, Jun. 19 KMI, KMP 85 Comments

    Summary

    • The EIA recently published its 2014 Annual Energy Outlook report. The report details a vast increase in natural gas production and consumption.
    • Kinder Morgan stands to benefit greatly regarding this development. The company’s already enormous natural gas pipeline footprint will facilitate further expansion in all regions.
    • This will be a four part series due to the amount of growth and expansion in all four Kinder Morgan regions.
    • In the following article we will drill down on the company’s Eastern region expansion plans and growth prospects.
  • General Electric: Enough Is Enough
    Wed, Jun. 18 GE 61 Comments

    Summary

    • News just broke that General Electric is making even more concessions to the French in order to secure a deal regarding Alstom’s assets.
    • I have had enough. I don’t like the way things are going one iota.
    • In the following article I will detail the latest concessions and give my thoughts on the matter.
  • Kinder Morgan: Vast Untapped Opportunity Looms
    Wed, Jun. 18 KMI 71 Comments

    Summary

    • Kinder Morgan is the leading transporter and marketer of carbon dioxide in North America.
    • The company delivers approximately 1.3 billion cubic feet per day of CO2 through about 1,300 miles of pipelines.
    • CO2 flooding is a proven technology that is used to boost production in mature oil fields.
    • Vast opportunities exist for Kinder Morgan regarding CO2 flooding. The only thing holding the company back has been the lack of supply. But that may be about to change.
  • Bank Of America: Buy Straw Hats In The Dead Of Winter
    Tue, Jun. 17 BAC 25 Comments

    Summary

    • Bank of America’s current predicament is a transitory issue based on things that happened 6 years ago.
    • Investors are being deluged with negative stories about the stand-off with the DOJ regarding a settlement offer.
    • The magnitude of the present situation seems great now, yet will appear like a tiny blimp on the radar screen in the future.
    • One major shareholder hasn’t sold one share even though he stands to lose out on a substantial gain presently if the bank falters. This is telling to me.
  • General Electric: The Past Is Always Tense, The Future Perfect
    Sun, Jun. 15 GE 27 Comments

    Summary

    • General Electric has been investing in its future for a long time now.
    • Recent events have occurred that bode well for the stock for a long time to come.
    • This type of long-term forward looking thinking is needed for retirees whose life expectancies are lengthening drastically.
    • In this article I will make the case as to why General Electric is the perfect stock for income and dividend investors.
  • Kinder Morgan: You Must Strike While The Iron Is Hot
    Editors' Pick • Sun, Jun. 15 KMI 99 Comments

    Summary

    • The recent tumult in the Middle East has once again spotlighted the need for America to become energy independent.
    • Kinder Morgan is the elder statesman of the North American oil and gas midstream infrastructure players. The company is well positioned to expedite the process.
    • Kinder Morgan is the best choice for dividend investors looking to participant in this secular growth opportunity for a number of reasons.
    • In this article I will lay out my bull case for the company going forward.
  • PDL BioPharma: Panning For Dividend Gold
    Fri, Jun. 13 PDLI 21 Comments

    Summary

    • A new stock appeared on my radar screen in the last few months due to its performance and dividend yield.
    • The stock has been performing well over the past few years, and appears to be gaining momentum.
    • The stock yields 6.21%, and has solid revenue growth, free cash flow, and earnings.
    • It appears this company may provide a great opportunity for dividend investors to obtain both capital gains and income production constituting the Holy Grail for dividend investors.
  • BlackBerry: A Golden Contrarian Opportunity Is Never Offered Twice
    Thu, Jun. 12 BBRY 206 Comments

    Summary

    • My contrarian instincts tell me a reversal of fortune is looming regarding BlackBerry.
    • The stock and company have been ridiculed and beaten down to historic lows.
    • Nevertheless, I sense the new CEO John Chen knows what he is doing and good things lie ahead for the company.
    • In this article, I will lay out my thoughts regarding the CEO and BlackBerry's future.
  • Kinder Morgan: Strap Yourselves In And Prepare For Lift-Off
    Wed, Jun. 11 KMI 38 Comments

    Summary

    • The immense increase of crude oil production from the Canadian oils sands project to occur over the next three years is staggering.
    • Rail shipments of the crude oil are projected to triple over the next three years due to delays in pipeline approvals.
    • This bodes well for Kinder Morgan’s Trans Mountain expansion project as crude oil shipments by train are far more dangerous than pipelines.
    • Once reality sets in, the opposition’s arguments will fall to the wayside as they realize the pipelines are the safest option.
    • Further, out of the major pipeline options, Kinder’s Trans Mountain expansion is the hands down favorite to be approved first in my opinion.
  • The Great Correction Of 2014? Don't Drink The Kool-Aid
    Wed, Jun. 11 SPY 156 Comments

    Summary

    • There has been vast speculation by many that the day of reckoning for the rally in the S&P 500 is upon us.
    • I beg to differ my friends. Although a day of reckoning is inevitable, we are nowhere near that point.
    • In the following article I will explain why the markets remain fairly valued even though they are up significantly from the 2009 low.
  • Kinder Morgan: One's Bark Is Always Worse Than One's Bite
    Editors' Pick • Tue, Jun. 10 KMI 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 AAPL, BBRY 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 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 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 T 74 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 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 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 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 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 KMI 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 KMI 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.