IAEResearch

Long only, deep value, growth at reasonable price
IAEResearch
Long only, deep value, growth at reasonable price
Contributor since: 2013
We recommended CSX to income investors in April, 2014. And once in 2013 as well.
Goalkick9. The article was published yesterday. However, my analysis of the company is not affected by short-term movements in the stock price. I am advocating a long-term stance.
This article was published yesterday.
Apologies for the errors in the article. We have taken care of the issue. Thank you for pointing out the errors.
Thank you for pointing out the error, Samlebon2306. We have made the necessary corrections.
Yes, tallguyz. Common shareholders suffer the most. Extremely unexpected news.
As I mentioned in the article, Green Smoke acquisition will not be material to Altria - it just shows that the company is keeping pace with the trend in the market. I agree that Altria should try to grow through SABMiller as the room exisits, and it looks like the company is trying to push SABMiller in that direction through its directors on the board.
Thank you.
Thank you for reading.
Clearly mentioned in the article that the company mainly works as a holding company, meaning it does not need to hoard cash and pays 80% of its free cash flows in dividends. So, the payout is not a concern - the company wants to maintain this payout ratio. Cash flows have been growing despite falling revenues, mainly because the company has a number of sources of cash - some of these are mentioned in the article, SABMiller, Phillip Morris, and other subsidiaries.
And finally, the company has been buying back shares (mentioned in the article), which is bringing down its share base - this is also resulting in lower growth in overall dividend payments than the free cash flows growth. Altria grew dividends at 8% and free cash flows at 12%. The company should actually be able to save more cash even after growing dividends. If SABMiller decides to grow into Africa as expected in the above linked article, then the growth in cash flows will be even higher. keeping all these factors in mind, I do not see Altria dividends coming under any threat in the short-term.
That's what I said in the article, Ruffdog. The crude fee-based contract only comes under threat if the E&P company decides to reduce the rig count or production due to the sustained low crude prices. However, as the Contango image shows, the environment has been favorable for E&P companies.
The Aegis Pipeline is 270-mile long pipeline -- it will be completed in stages and the first stage will be completed and operational in the current quarter. EPD has not announced how much capacity out of a total of 425,000 bpd will be operational during this quarter, but the partnership will certainly get some benefit of this project in the third quarter.
Thank you for pointing out the error, Alscherod. We meant "MLPs do not pay corporate taxes" but unfortunately a typing error resulted in "MLPs do pay corporate taxes". We have submitted the correction.
Thank you for pointing out the error, MAYHAWK. We have submitted the correction.
@The Opportunist. We do not cherry pick in order to support our thesis. We always try to give the unbiased opinion as we do not have any favorites. I have updated the chart and added HYGS as you mention yourself below that we are also optimistic about HYGS. The title of the article says "one of the best picks" we did not say FCEL is the absolute best pick in the sector. Thank you for reading the article and your input.
Thank you for the kind comments, BAC219. We have talked about NGL and its export prospects in our other energy articles. We will try to write an article about KMP and further expand our research in this article and how it will impact KMP.
Thank you for pointing that out, ephud. We have made the changes.
@SaratogaHawk.. You bring a special kind of knowledge and wit to this forum. I agree, Arctic can be an extremely interesting region for offshore drillers.
Apologies for the error in the article. There was an error in the Ycharts tool, which caused the price return and total return figures to be inaccurate for KMI and KMP. Thank you, butterfly Seeker, for pointing out the error. We have made the changes to the article.
Seadrill released the earnings report today.. I went through the report and the long-term interest bearing debt has already come down. There are some other interesting developments in the earnings report. I will discuss the main points in my next article.
Of course 3D Systems manufacturers printers for businesses -- you can check the website to see the complete product portfolio. The company is a leader in the hobbyist market but it also has a strong commercial portfolio. I do not know about the possible acquisition candidate and I would not like to speculate on it.
Thank you for the kind comments, ArtfulDodger. Best of luck with your investments.
12-18 months is short-term for me, 3-5 years medium-term and anything above that long-term. You might have a different definition of investment horizon but these are the parameters most investors follow. Anyway, my optimism has already been justified by Seadrill winning new contracts at even better day rates and Rosneft making a big commitment with NADL deal. Thank you for reading and commenting and best of luck with your investment.
I read the NADL Rosneft deal.. very exciting. This shows further the commitment major oil companies have towards offshore drilling.
Yes, Prudent Investor. I believe the slowdown in CapEx will be short term (12-18 months). I have explained it in my previous Seadrill articles. So, as the CapEx gets back to previous levels -- these offshore drillers will benefit considerably.
As I said in the article, structured notes are complicated and involve a number of assumptions and spreadsheets. Sometimes it is extremely difficult to understand the model for someone who has not developed that model himself. Still, an error from an FI like BAC is surprising and disappointing at the same time. Shareholders have the right to be aggrieved.
Wiesje. Nokia acquisition has been discussed in detail by several authors. The scope of this article was Microsoft's progress in the CRM segment. The company operates in a number of segments and we cannot talk about the same news again and again. Thank you for reading the article. I appreciate your contribution.
Thank you for the kind comments, Michael. Microsoft has certainly done a great job in CRM market. I totally agree with you about Salesforce.com.
Thank you for the kind comments, CapeCapMgmt. A title about fruits and vegetables would not have been very attractive ;) .
Very dependable dividend payer and collecting attractive assets. This is a solid long-term investment.
Thank you for the kind comments, John.
BAC is a compelling investment as I said in the article, but the expected correction might provide a better entry point. It is the best pick in the banking sector, in my opinion.