Buy Disney While The Force Is Strong [View article]
There's a word misspelled in the headline, can you find it?
I usually don't reply to hecklers but you're a real trip. I've mentioned Disney's deal with Marvel (hence the Avengers) and also point to a growing collection of media assets without naming them all directly (ESPN, ABC, Disney Interactive, etc.) We've both made a bull case so I'm not really sure what the problem is. Thanks for commenting though.
Buy Disney While The Force Is Strong [View article]
I did not compare Starbucks to Disney; I mentioned Starbucks because it was the first in a series of stocks I'm recommending for a long-term portfolio. And someone needs to edit the headline of the article you're recommending on John Carter before I can take it seriously. Please, have some decency.
I think you're right in the short-term, the illusion will continue for another brief period in time, but volatility is back to stay and I'm not nearly so sanguine about the medium to long term.
Buy The Dip, Sell The Rip - One More Time [View article]
Didn't expect the AUD/JPY to extend its drop this far (currently at 91) but it definitely shows how violent moves can be when everyone is on the same side of the boat. This doesn't portend good things for the equity markets in coming months.
Buy The Dip, Sell The Rip - One More Time [View article]
Agreed, the rest of big cap tech ought to rally too. On the QQQ, I imagine we first close that gap from May 3. I'd like to see it happen on lighter volume if we're going to bounce.
There's an interesting metric on Mr. Fish's spreadsheet called Confidence Factor. This is a number that takes into account several variables that gauge the reliability of continued payouts. I prefer this to an ROIC analysis because 1) I can easily use it for comparison to other companies in the dividend growth universe (via the handy average listed at the end of each category) and 2) I care about consistent, continued div increases but not so concerned that a certain rate of increases can be maintained. When I'm buying a low-margin retailer like TGT, I'm under no illusion that a 20% increase can be maintained for years.
Having said this, I do appreciate you highlighting ROIC. It's a key metric to take into account when judging the wealth-building prospects of a given stock/company.
Not All P/E Ratios Are Created Equal [View article]
I agree with bishophicks that the historical p/e is important. At 9.7, BHP is trading at a nice discount to its 10 year normalized p/e of 14.2. BF-B is at 26.4 vs. 21.3 historic. Swapping the two makes sense. BF-B is a fantastic business but it's not priced for great total returns right now.
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
This is simply not true. Low interest rates (money printing) forces investors into stocks, bidding up prices. Couple this with the fact that central banks are actually buying stocks now.
A Continually Rising Yen: Reductio Ad Absurdum [View article]
I've been trading forex for a number of years and while fundamentals may matter over the very long-term, they rarely do in the short to medium term. What most analysis seems to miss is the tremendous speculative interest in the currency markets. Hedge fund favorite AUD/JPY is a good example of how this plays out. The herd gets on board, momentum builds, then everyone rushes to get out at the same time hence the epic unwinds we see in the yen pairs. The yen appears to be getting stronger, but it's only the temporary effect of massive money flows. I'm short the AUD/JPY here, looking to cover and go long in the mid 90's.
Starbucks' Bottomless Cup Of Profits, Drink Up [View article]
I can totally understand your valuation concerns. Interesting food for thought, I recently started using Chuck Carnevale's Fast Graphs which calculates an average P/E across many years and going all the back to 1993, Starbucks average is 41.2! Of course it was a young upstart for a number of those years but if we look at just the last 10 years, it's 31.7. Bottom line, investors continue to pay a premium for Starbucks. One day it will trade at a 20 multiple, but I think we're going to need an epic correction to get there. After all, no growth companies like JNJ are trading over 20 at the moment. Gotta love the markets.
5 Undervalued Dividend Stocks With Strong Profitability [View article]
STO is ridiculously undervalued. I generally avoid energy but it's tempting. And I keep thinking the market must know something we don't. Why so cheap?!
4 Medical Device Companies, 4 Completely Different Stories [View article]
After reviewing the returns on equity and margin situations at both IEX and VAR, it's beyond me how you could recommend the former over the latter. There may be less business risk in IEX but what good is a diversified business model if you can't hold the line on margins? I'd rather do one thing and do it well - VAR's ROE is dynamite, averaging in the mid 20's for over a decade. High barriers to entry. Secular trend (rising cancer rates). Long VAR.
Expeditors International: An Attractive Idea For A Richly Valued Market - Part II [View article]
I maintain a wish list of my favorite stocks (high ROE, strong cash flows) and sort by valuation (dcf) whenever I have money to put to work. EXPD currently tops the list! Good call, buying this week.
Buy The Dip, Sell The Rip - One More Time [View article]
Buy Disney While The Force Is Strong [View article]
I usually don't reply to hecklers but you're a real trip. I've mentioned Disney's deal with Marvel (hence the Avengers) and also point to a growing collection of media assets without naming them all directly (ESPN, ABC, Disney Interactive, etc.) We've both made a bull case so I'm not really sure what the problem is. Thanks for commenting though.
Buy Disney While The Force Is Strong [View article]
Buy Disney While The Force Is Strong [View article]
This Market Correction Will Pass [View article]
Buy The Dip, Sell The Rip - One More Time [View article]
Buy The Dip, Sell The Rip - One More Time [View article]
Forget Dividend Growth Investing, It's ROIC Investing [View article]
Having said this, I do appreciate you highlighting ROIC. It's a key metric to take into account when judging the wealth-building prospects of a given stock/company.
Not All P/E Ratios Are Created Equal [View article]
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
http://bit.ly/13xBxmc
A Continually Rising Yen: Reductio Ad Absurdum [View article]
Starbucks' Bottomless Cup Of Profits, Drink Up [View article]
5 Undervalued Dividend Stocks With Strong Profitability [View article]
4 Medical Device Companies, 4 Completely Different Stories [View article]
Expeditors International: An Attractive Idea For A Richly Valued Market - Part II [View article]