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John Rhodes

 
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  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @tuliptown

    Thanks for the notes.

    Short answer is that I didn't sell all my NOV. I sold probably 20-25% of my position and I don't plan on selling more. On the flip side, I think folks are going to see some real surprises with VZ in the next few years despite its size. And, there's a lot of hate on retail and WMT, which spells opportunity to me. The hate's not rational. I think there's more to WMT's growth story, too. Many things going on that deserve more attention, such as their defense (and growth) against AMZN. I'm buying low, into higher dividends, with safety and stability of strength, while playing on semi-hidden value triggers. It's a moderate remixing, nothing radical. Feels rational; low emotions here. We'll see, time will tell. I'm patient.
    Aug 19 09:36 PM | 2 Likes Like |Link to Comment
  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @JMajoris

    Ha! I found out about BRK's buys and sells after submitting my article. it doesn't make me wrong or right, but it definitely made me chuckle.

    By the way, if I recall (based on position size), the NOV and VZ transactions are probably Ted and/or Todd, and WMT is likely Buffett. I think.
    Aug 19 09:18 PM | Likes Like |Link to Comment
  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @WCapeCapMgmt

    Right! It's about goals and objectives. As long as you're not remixing all the time (I trade very infrequently) and transaction costs aren't killing you, then adjusting your holdings can get you closer and closer to what you want.

    What I mostly care about is buying low vs. selling high. In my current situation, and my current view, both VZ and WMT provide me with bargain (or undervalue) opportunities. However, while NOV is a great company, I personally would probably not open a position given all the opportunities I see right now.
    Aug 19 09:12 PM | 2 Likes Like |Link to Comment
  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @George Schneider

    Thanks for the comment.

    I believe I read that article. Good stuff. What I will point out is that it's not an "all or nothing" proposition. You can pull out some gains to remix, but maybe not totally liquidate a position. Again, it's about your own goals.
    Aug 19 09:09 PM | 1 Like Like |Link to Comment
  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @Investing Doc

    Thanks for the comments.

    1. I agree P/E ratio comparisons do not give true apples to apples comparisons. I could have spent more time talking about relative P/E expansion and contraction per stock, and explained that NOV moved up quickly in relation to intrinsic value whereas both VZ and WMT maintained or even dropped in price relative to value.

    2. Short answer on this one is that I appreciate DNOW, appreciate the "free" spinoff shares, and appreciate the value creation. And, I know that NOV has plenty of room to grow, and increase dividends and payout is low. You are totally right. This falls the "investor goals" bucket where I want more cash now, with safety and stability. Bird in hand, two in bush...

    3. That's a topic for a different article. In this space I cannot properly justify my valuation and my expectations. But, I respect your opinion. Thanks.
    Aug 19 09:07 PM | 2 Likes Like |Link to Comment
  • Here's How I Remixed Into Verizon And Wal-Mart For Permanently Higher Dividends [View article]
    @Nicemikie

    I think T is quite reasonable right now. But, I like VZ a bit more mostly because I see greater growth into the future, including greater dividend growth. But, at the right price, I'll open up a T position. T's a champion.
    Aug 19 08:59 PM | 1 Like Like |Link to Comment
  • Should An Intelligent Investor Buy This Cyber-Focused Office REIT? [View article]
    Strongly prefer DLR in the technical / digital space. I know COPT and DLR isn't apples to apples, but it's close enough to me when I draw the circles big enough. Pus, DLR has great history of growing dividends. The COPT dividend cut instantly devalues the business; not reliable enough going forward 5-10 years, and beyond.
    Aug 19 12:35 PM | 3 Likes Like |Link to Comment
  • Update: PetSmart And Jana Partners [View article]
    "In addition, we don't want to be holding a stock with the kinds of risk that come with having an activist investor at odds with management."

    Specifically, what risk? That the activism fails? And if so, what's the result in this worst case scenario?
    Aug 18 05:37 PM | Likes Like |Link to Comment
  • A Few REIT Lessons Targeted For Millennial Investors [View article]
    Brad, I appreciate the Ben Graham quotes and the foundation. However, you mention margin of safety many times and then recommend HTA, O and DLR.

    Without getting into the details of valuation, it appears that HTA and O are fairly valued or perhaps slightly overvalued. DLR is trading at a small discount to fair value. This is simply a reflection of the FASTgraphs and a quick look at P/FFO.

    (I do know you invested in these companies before now, when they were more undervalued, and even offered a true margin of safety.)

    I get that HTA, O and DLR are relatively safe in that they won't suddenly collapse or go bankrupt, but they aren't crazy bargains offering excellent margins of safety. (DLR is still reasonable, I suppose.)

    So, I'm confused. I'm not seeing a true Ben Graham "margin of safety" with these stocks. Rather, I see fair value and strong REITs. Perhaps I've missed something.
    Aug 18 03:32 PM | 1 Like Like |Link to Comment
  • Stock Story Time (Part 3) [View article]
    @moseslarsen

    I sold a bit of my NOV to lock in some gains while the stock is up near it's 52-week high and also because I see bargains with VZ and WMT. I've got an article coming out about this "remixing" in the next 24 hours or so.
    Aug 18 02:53 PM | Likes Like |Link to Comment
  • Stock Story Time (Part 3) [View article]
    @SkipK

    Just so you know, I recently reduced my WU holding to invest into WMT and VZ, which I see as great long term bargains right now.
    Aug 18 02:51 PM | Likes Like |Link to Comment
  • Why Retailers Could Be Headed For A Disaster [View article]
    Well said, David.

    Given that context, two things come to mind. There are always bargains, or at least reasonable values available in the market. So, if you are willing to do the work, you can find some great stocks especially if your holding period is extended. And second, and more specifically, I think we'll continue to see degradation of niche players who are up against AMZN directly while we'll see weakness in TGT and WMT. I think both of them will be coming back, in a winner-take-all type of game where TGT's perceived to be a bit more trendy and upscale whereas WMT is seen as overall best-value. Luxury brands (KORS, for example) will continue to do well as society bifurcates, but who knows which brand will remain on top? My long term money's placed on TGT and WMT.

    ...sorry, I know that I'm off topic a bit, but your comment got me thinking and rambling. Figured I'd share, for fun.
    Aug 18 02:44 PM | Likes Like |Link to Comment
  • Why Verizon Could Have 30% Upside In 12-18 Months [View article]
    Excellent article with a lot of juicy red meat. I'd also like to emphasize that VZ has paid growing dividends for 9 years now. So, they made it through the financial crisis and they continued to pay and they keep paying more. For dividend growth investors this is important fact. Although 9 years isn't 25 years, or 30 years, or 50 years, it's impressive in light of all events we've seen.
    Aug 18 02:32 PM | 2 Likes Like |Link to Comment
  • The War Sprint Can't Afford [View article]
    You should flesh this out just a bit and post as a full blown article.
    Aug 18 01:34 PM | 1 Like Like |Link to Comment
  • Kinder Morgan looks expensive after buying up MLPs, Barron's warns [View news story]
    Exactly!

    I recently posted an article about *exactly* this topic (EBITDA misdirection) along with how Hedgeye is misdirecting a bit re: dividend payout and coverage.
    Aug 18 01:16 PM | 3 Likes Like |Link to Comment
COMMENTS STATS
602 Comments
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