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John D. Thomason

 
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  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    A detailed definition of FFO from DLR can be seen on the Supplemental document provided with the quarterly earnings release. Go to Financials, in the Investor Relations section, and click on Supplemental to bring up the PDF document. FFO and AFFO are defined on page 30. Compare that definition to the FAST Graphs definition. I am on the road just now after a day of travel, I will not be able to look into this further for awhile, but maybe you can get some idea of why there is such a difference between DLR's data & FAST Graphs' numbers.

    John D. Thomason
    Oct 25 12:33 AM | Likes Like |Link to Comment
  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    Many leases are triple-net. The Supplement to the quarterly earnings provides a lot of detail on tenants and leases.

    John D. Thomason
    Oct 24 03:31 PM | Likes Like |Link to Comment
  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    Could be - but these things don't happen overnight. A transition could take quite a while.

    John D. Thomason
    Oct 24 03:29 PM | Likes Like |Link to Comment
  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    I stated in the article that all the data points listed came from the Company Overview from DLR's webste, under Investor Relations. I'm sure there is an explanation - it may be DLR calculates the number differently. An inquiry to DLR as to how their number was calculated would hopefully receive a response.

    John D. Thomason
    Oct 24 03:27 PM | Likes Like |Link to Comment
  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    I only picked up a few shares at $65 or so to start with. I agree it now looks like better prices may be coming, but I figured my entry price was $15 lower than the high just a couple of months ago, so it wasn't too extended. If something happens to interrupt this sell off we are having, it may not get below $60.

    If it does get there, we'll both be buyers. Good luck!

    John D. Thomason
    Oct 24 06:00 AM | Likes Like |Link to Comment
  • Digital Realty Trust: A REIT Worthy Of Consideration For Income Investors [View article]
    Hi, aschroed,

    The Overview from DLR referred to in the article stated that no single tenant accounted for more than 9.6% of revenue, but based on your information, Century Link must be right up there somewhere, over 9% at least. Century Link has for a long time been on the list of stocks with a dividend that is suspect, but even if the generous payout has to be trimmed, I don't see it affecting DLR much. I don't think CTL is going out of business anytime soon, and they will need to keep their data centers intact to continue. I haven't followed CTL since I took it off of my lists (because of the concern that the dividend might have to be trimmed), but I haven't seen any news of any new, dire developments that would indicate that CTL is in any immediate danger. So I guess my answer is that I'm not worried, but as the largest tenant accounting for around 10% of revenue, I concur it would be a good idea for investors in DLR to keep an eye on CTL as well.

    John D. Thomason

    Oct 23 07:54 PM | 1 Like Like |Link to Comment
  • Procter & Gamble Is Severely Overvalued [View article]
    Hi, jnpfl,

    I hold PG in an IRA, so tax possibilities are not an issue. I concur that option proceeds aren't much, but in my case, I would be happy to sell at $70, so I looked at it as a limit sell order with a slight bonus.

    John D. Thomason
    Oct 15 11:19 AM | 1 Like Like |Link to Comment
  • Procter & Gamble Is Severely Overvalued [View article]
    Vince,

    Excellent analysis. While I believe PG is (was) a buy below $60, as per my article some months ago, it certainly has risen beyond what it is worth, as the market has continued to rise (until just recently), and the Ackman position has become known. PG was on my select list of "no covered calls allowed" stocks, but as the price threatened $70, I finally succumbed and sold a call against my shares, with a strike of $70. My cash levels are higher than they have been for some time, we need a correction to provide some better entry prices on alternatives to PG.

    John D. Thomason
    Oct 15 08:53 AM | Likes Like |Link to Comment
  • Cisco, Intel, Microsoft, Hewlett-Packard: Value Stocks, Seriously! [View article]
    Hi, dreisinger,

    I am retired from my IT career that I was in for 32 years, but not retired, in my own mind, at least - I am a full-time investor.

    Things have heated up for these stocks since the article came out. To update any who are interested, here's what I have done since then, as far as these stocks are concerned: INTC - bought more INTC today as the stock hit a 52 week low towards the end of the day; MSFT -started a new position a few days ago as the stock declined below $30; CSCO - no change, holding on to what I already have; and HPQ, watching in disgust as the stock crashed even further following the disastrous CEO meeting with analysts, but holding on to a small position I bought as a speculation a few months ago when it declined below $18. I believe HPQ will eventually stabilize, but I'm not enough of a believer to put new money into it.

    John D. Thomason
    Oct 12 09:05 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Oops! To quote the immortal words of presidential candidate and debater Rick Perry. Upon reviewing the comments, I see that eyetri2 had pointed out the newsletter to the author, and the author had responded. Anyway, QT Trends presents an interesting perspective, but I wouldn't take the undervalued or overvalued stock prices too seriously.

    John D. Thomason
    Oct 6 09:42 AM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Darien,

    You might be interested in the newsletter Investment Quality Trends, which has been publishing since 1966, an unbelievable length of time for an investment newsletter. The website is http://www.iqtrends.com. Stocks suitable for investment are selected per a rigorous screen, then segregated into four categories: Undervalued, Rising, Falling, and Overvalued. The determining factor? Yield. And that's all. While I am a subscriber and I believe the newsletter has value, I frankly believe the newletter places too much emphasis on yield. It does not really account for a situation where a management philosophy on dividend payout and yield has taken place, such that the current payout is not comparable to earlier levels, as far as determining whether the stock is overvalued, undervalued, or whatever. But at any rate, since the newsletter bases their views on a stock exclusively on yield, I thought it would be of interest to yourself and readers of your article.

    John D. Thomason
    Oct 5 01:54 PM | 1 Like Like |Link to Comment
  • Cisco, Intel, Microsoft, Hewlett-Packard: Value Stocks, Seriously! [View article]
    Apple has certainly been great to own for those presient enough to have bought it before the huge price run up. But the valuation parameters of P/E (15.5), P/B (5.53), P/S (4.15), P/CF (14.4), and yield (1.61%) are not what would one would expect for a value stock, which as I use the term is a stock that has value that is not recognized or appreciated by the market, as reflected in the stock price. I think you must agree that AAPL is recognized and appreciated as a successful company by the market, which by definition means it is not a value stock.

    John D. Thomason
    Oct 2 09:19 AM | Likes Like |Link to Comment
  • General Mills - A Solid Dividend Payer Available At A Reasonable Price [View article]
    Just a few observations from reviewing the prior quarter income statement (from MSN Money) and the latest results, per the 8K filing dated 9/19/2012, available from the GIS website:

    The prior quarter income statement indicated the diluted EPS was based on a share count of 668.3M, as per the MSN Money Website. I would assume this figure would be the shares outstanding at the end of the quarter, which may or may not be correct. The latest release states that the AVERAGE diluted shares outstanding during the quarter was 667M. This is not, I assume, the same as the shares outstanding at the end of the quarter, so these two numbers may not be reconcilable. The $272M spent to buy shares during the quarter would have resulted in a share count of purchased shares, by my math, of around 6.8M. But these shares are not eliminated from the fully diluted shares outstanding, I don't think, they then become Treasury stock. Then, when executives exercise their stock options, the shares they receive come from Treasury stock. Yet another share count can be derived from the 8K, which gives Net Earnings as $548.9M, diluted EPS as $.82, from which it can be deduced that the share count outstanding is 669.4M.

    Based on these observations, I don't believe we have enough information and/or enough understanding of what the information we do have represents, to reconcile the actual diluted share count at the beginning and end of the quarter, the effect of the share repurchases, and any effects from stock options exercised, if any. This would be a good topic for a shareholder inquiry to Investor Relations, to see if they will provide a reconciliation.

    John D. Thomason
    Sep 19 12:43 PM | 2 Likes Like |Link to Comment
  • General Mills - A Solid Dividend Payer Available At A Reasonable Price [View article]
    Thanks, Ray,

    As I pointed out in the article, GIS has been forthcoming in recent years with regular dividend increases, following a long drought from 1999 to 2004, so hopefully that will continue.

    John D. Thomason
    Sep 7 01:20 PM | Likes Like |Link to Comment
  • General Mills - A Solid Dividend Payer Available At A Reasonable Price [View article]
    Thanks to all who have comented thus far. As I inferred in the article, GIS has some imperfections, and the Balance Sheet is far from ideal. In general, companies just utilize more debt these days than in Ben Graham's time. So I guess as an investor, one just has to cut them some slack, at least when revenue is as steady as it is in the case of GIS.

    Although in this and other articles I have encouraged investors to use summary, reformatted financial data from MSN Money or similar websites, which is wonderfully convenient, one thing I now realize after reading the textbooks referenced in the article, is that if you want the real story, you have to read the 10Q and 10K documents as filed with the SEC, especially the accompanying notes. You don't see these unless you refer to the original filings. The proxy is also a great source of data on management compensation and board structure. I'm finding out there is a lot more to investing than scanning summations on financial websites. While that is a good first step, reviewing recent (and ideally, also some not-so-recent) SEC filings is necessary to really understand what is going on. Any analyst reports available to an investor through brokerage accounts held should also be read.

    Just a few thoughts from a non-professional who is always trying to elevate his "game" as he learns more and more, usually the "hard way", what it is all about.

    John D. Thomason
    Sep 6 11:11 PM | 1 Like Like |Link to Comment
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