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Patience\ Virtue  

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  • I Couldn't Find Value In AT&T [View article]
    Amen to that. It's hard to even convince myself that there could be value in any bonds right now.
    Dec 13, 2013. 04:10 PM | Likes Like |Link to Comment
  • I Couldn't Find Value In AT&T [View article]
    I will say that I'm not as pleased with the peer review here as I usually am. That being said, I am open to investing in foreign companies and as such I don't usually limit my comparison. In a sense, the filter I used in the article is of large international telecoms. I get the feeling that I should have included a separate look at US telecoms...we live we learn.

    Thanks for participating.
    Dec 13, 2013. 04:10 PM | Likes Like |Link to Comment
  • I Couldn't Find Value In AT&T [View article]
    I touched on the international expansion at the very end...the only rumor I have really heard is the mamouth deal for Vodaphone. It's hard for me to see how that does anything other than make a big telecom even bigger. Neither company's prospects are all that great. I did see them mention in the last earnings announcement that they could also go for a smaller deal to start penetrating foreign markets. Since the Vodaphone deal is kind of lacking to me, I guess this is more attractive but the question is "Can a small deal move the needle?" I don't know so I can't really incorporate it into an analysis.

    As for U-Verse, I ended my U-Verse account a little over a year ago. I found the service nice, but expensive. Since then I have been streaming and saving a ton of money in the process. Moving forward I see the content owners holding the power and companies like AT&T, Comcast, and Dish needing to pay more and more to keep things exclusive.

    Thanks for commenting!
    Thanks!
    Dec 13, 2013. 04:07 PM | Likes Like |Link to Comment
  • I Couldn't Find Value In AT&T [View article]
    I sincerely hope that you keep benefiting from the income stream. It should remain well supported.

    Thanks for participating!
    Dec 13, 2013. 04:01 PM | Likes Like |Link to Comment
  • I Couldn't Find Value In AT&T [View article]
    I suppose that is represented in their operating cash flow which to date clearly supports the dividend. Like you, I like the dividend but I can't see more upside than downside here.
    -Margins under pressure
    -Very little room to grow market share in wireless
    -Very high cap ex requirements to stay relevant

    Somehow I can't ignore that.
    Dec 13, 2013. 04:00 PM | Likes Like |Link to Comment
  • A Series Of Unfortunate Events For Digital Realty [View article]
    I remember reading at some point that Google designs and builds all of their own datacenters. That being said, it doesn't mean that Google doesn't lease the space from DLR. I do not remember Google being a large customer of DLR's.
    Dec 3, 2013. 11:25 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    That's a well structured defense. Thanks for participating!
    Nov 19, 2013. 09:10 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    I haven't looked at NEE in over a year but the last time I looked, I liked what I saw. I'll put it on my list of topics to review.
    Nov 18, 2013. 10:13 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    To be honest, the way I treat my watch list is to do just that...watch the price action. If I see a given security get within 5 or 10% of my entry point, I'll review and see if I can rationalize taking a bite.

    By nature, I'm a very quantitative person. At the same time, I believe that stock valuation is a qualitative process wrapped in a quantitative disguise. In other words, if I could buy SO today at $38 and in 5 years could sell it for $50, the end result is not much different than if I buy it at $40 and sell it for $50. In either case, the success is as much (if not more) driven by where the price ends up rather than where it is today.
    Nov 18, 2013. 10:11 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    Whether it's a rising rate environment or some other red herring, I add companies that I like to a watch list and wait for my entry point.
    Nov 18, 2013. 09:52 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    gotincome,

    Very good points, thanks for sharing.
    Nov 18, 2013. 09:51 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    Jerry - I'm not disagreeing with you but would like to hear what would make SO seem a bit more modern to you. The flip side of that argument is that with the Kemper project they are creating a new type of coal plant with a coal mine on site to decrease transport costs and with Vogtle they are creating the most modern Nuclear plant in the country.
    Nov 18, 2013. 09:51 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    Jon,

    There is a slight difference between ROIC and ROCE and to be honest, I had to consult some finance literature to grasp it better. Rather than hash it out here, I'll just link to the investopedia sites for each:
    ROCE: http://bit.ly/18IXTSX
    ROIC: http://bit.ly/18IXTT1
    A message board comparison of the two: http://bit.ly/18IXWyi

    Theoretically, ROIC should also be above the cost of capital to ensure value creation so looking at the M* and fastgraph numbers it is much more difficult to guarantee that SO is effectively allocating capital without a precise cost of capital calculation.

    Thanks for participating.
    Nov 18, 2013. 09:47 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    Good information Dividend Sleuth. I suppose it's a good thing that they are paying attention to Engineering and Construction given the last few quarters.

    Thanks for participating!
    Nov 18, 2013. 09:36 AM | Likes Like |Link to Comment
  • Looking For Value In Southern Company [View article]
    Coaly1234,

    Thanks for your thoughts. I'm glad to hear that somebody else sees the upside as well.

    Keep reading!
    Nov 18, 2013. 09:35 AM | Likes Like |Link to Comment
COMMENTS STATS
102 Comments
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