Seeking Alpha

Mark Kowalski

 
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  • Aflac: The Gem Your Dividend Portfolio Needs [View article]
    Thanks Yaddayadda,

    I got the projected EPS for 2013 from Yahoo Finance - Analyst Estimates page
    http://yhoo.it/W29YfL

    Enjoy
    Jan 13 07:46 AM | Likes Like |Link to Comment
  • Aflac: The Gem Your Dividend Portfolio Needs [View article]
    Thanks Retire, my background as an auditor certainly prepares me much better for financial statement analysis, but I will keep your comment in mind when working on future articles.
    Happy trading!
    Jan 12 10:13 PM | Likes Like |Link to Comment
  • Aflac: The Gem Your Dividend Portfolio Needs [View article]
    Agreed Russell, these two currency fluctuations are incredibly hard to predict.
    Positive Thoughts: thanks for bringing this up, the Yen and Dollar will certainly impact the share price in the coming years. However, Aflac made an interesting comment in its Q3 report concerning the falling value of the Yen and how it will affect the share price as follows:

    "because a significant portion of Aflac's business is in Japan, where the functional currency is the yen, the company believes it is equally important to understand the impact on operating earnings from translating yen into dollars. Aflac Japan’s yen-denominated income statement is translated from yen into dollars using an average exchange rate for the reporting period, and the balance sheet is translated using the exchange rate at the end of the period. However, except for a limited number of transactions, the company does not actually convert yen into dollars. As a result, Aflac views foreign currency as a financial reporting issue and not as an economic event for the company or its shareholders. Because changes in exchange rates distort the growth rates of operations, readers of Aflac's financial statements are also encouraged to evaluate financial performance excluding the impact of foreign currency translation."

    What they are saying here is that a fluctuation will have a minimal effect on the intrinsic value of the shares since Aflac doesn't actually convert the funds from Yen to USD. I do agree with this, but only to a certain extent. A fluctuation would not have an impact on the true value of the shares so long as the prices eventually return to their original levels. On the other hand, a significant devaluation over time will have an adverse effect.

    Thanks for bringing this issue up, it is certainly important for existing and potential Aflac investors to note
    Jan 12 10:00 AM | 1 Like Like |Link to Comment
  • Aflac: The Gem Your Dividend Portfolio Needs [View article]
    Thank you for your kind words richjoy, much appreciated
    Jan 12 07:39 AM | Likes Like |Link to Comment
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