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Portfolio Management 101  

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  • For Some Baby Boomers, Retirement Might Mean A Part-Time Job
    Fri, Feb. 20 27 Comments

    Summary

    • Baby boomers nearing retirement may not have the dream retirement they expected or the retirement experienced by prior generations.
    • For a variety of reasons, retirement nowadays doesn't mean lounge around and do nothing.
    • It takes careful planning during our working years to increase the likelihood that our retirement will be as we expected.
  • Healthcare REITs May Continue At The Rhythm Of The M&A Beat
    Wed, Feb. 18 AVIV, BKD, HCN 5 Comments

    Summary

    • M&A activity has been a bright spot for many investors over the past few years.
    • Despite healthcare REIT outperformance, M&A activity may be an additional tailwind to give healthcare REITs another leg up.
    • We identify a few things to look for and provide some examples of companies that fit the characteristics of both acquirers and targets.
    • That being said, don't invest simply for the potential of a deal - buy solid companies and enjoy the extra price pop if a deal does ever materialize.
  • How To Adjust Your Retirement Portfolio For The Effect Of A Stronger Dollar: Sold In The U.S.
    Tue, Feb. 17 AVB, BXP, CMG 3 Comments

    Summary

    • The stronger dollar is detrimental to US multinationals with a high proportion of foreign sales.
    • Despite their long-term stability, these companies may underperform in the short term.
    • If you are a tactical investor, you may want to consider shifting your allocation to U.S. companies with a focus on the domestic market.
  • Retirement Funds Cut By New Congressional Budget: Generation Y Take Note
    Tue, Feb. 17 AMLP, NOBL, REM 26 Comments

    Summary

    • Benefits from retirement funds and social security are becoming less and less certain.
    • For future generations, the promise of these benefits seems less and less likely.
    • To be prepared for a comfortable retirement, Generation Y should begin, if they haven't already, to take advantage of retirement accounts.
    • Because of the tax-deferral of these accounts, dividend-paying stocks can be advantageous to invest in within these retirement accounts.
  • Retired And Looking For Income From Your Bond Allocation? Pump Up Your Yield With A Barbell Approach
    Tue, Feb. 10 BSV, BLV, ILTB 8 Comments

    Summary

    • Low interest rates have been a challenge for retirees needing income from their investment portfolios.
    • With rates expected to rise, moving to short duration is typically the best strategy within fixed income.
    • As the yield curve flattens, a barbell approach may be better to achieve the desired level of income and minimize interest rate risk.
  • Protect Your Nest Egg: Use Low Volatility Strategies In Your Retirement Portfolio
    Mon, Feb. 9 SPLV 13 Comments

    Summary

    • Finding ways to generate enough income from a retirement portfolio can be difficult in a low interest rate environment.
    • Many retirees require additional growth from their portfolios as well, and to do so requires investing in equities, which have higher risk.
    • There are equity investing strategies that exhibit lower volatility and comparable growth to traditional equity exposure.
    • Using these low volatility strategies may allow for greater flexibility in allocating to equities, resulting in both higher income and growth.
  • Caterpillar's Pullback May Be A Good Opportunity For Retirees To Add Exposure To This Bellwether Stock
    Tue, Feb. 3 CAT 28 Comments

    Summary

    • The decline in oil prices has had a negative impact on short-term earnings for Caterpillar.
    • It is still a Dow 30 stock with adequate cash flows and strong dividends.
    • For retirees looking to add a high quality stock during a 6 year bull market, the recent pullback in CAT may provide the opportunity.
  • Be A Contrarian: Use Short Interest To Identify Upside In REITs
    Mon, Feb. 2 ARPI, CCG, DDR 1 Comment

    Summary

    • Evaluating short interest in a stock can provide an indication of investor sentiment.
    • While short selling metrics should not be used to make long-term investment decisions, they can provide insight on when to add or reduce positions.
    • Two REITs offer a contrarian long-term play despite a high level of short interest.
  • Investment Strategies For Retirees In Today's Economic Reality
    Wed, Jan. 28 AGG, DVY, IVV 14 Comments

    Summary

    • Retirement investing has changed over the years to become much more complicated.
    • These strategies and those of long-term investors have become much more similar than they have been historically.
    • Asset allocation, diversification, and income are the three keys to a successful retirement portfolio strategy.
  • Why Investing In Real Assets Is A Sound Portfolio Strategy: Using REITs To Gain Exposure
    Mon, Jan. 26 HCN, HCP, HPT 8 Comments

    Summary

    • Investing in Real Assets can help further optimize your investment portfolio.
    • Diversifying direct real estate investments can be difficult.
    • Using REITs for investing in real estate provides diversification, liquidity, and broad real estate exposure.
  • Preparing For Retirement In 2015 And Beyond
    Fri, Jan. 9 12 Comments

    Summary

    • Retirement planning should not be postponed indefinitely. It should be done throughout your life.
    • Periodic reevaluation of your retirement plan and portfolio is essential for reaching your goals.
    • In order to properly plan for retirement you must know your investor profile and risk tolerance.
  • With Fibria, You Do Want To Squeeze The Charmin
       • Nov. 11, 2014 FBR 1 Comment

    Summary

    • While the demand for paper in general continues to decline, there are certain types of paper products that will continue to grow.
    • Tissue paper is not glamorous and does not offer get-rich-quick investments, but can potentially provide investors with slow, stable growth and less volatility than other commodities.
    • As the largest pulp producer in the world and a business model and cost structure that is advantageous in this environment, Fibria looks interesting.
  • Thin Film Electronics: A Pure Play Investment On The Internet Of Everything
       • Nov. 1, 2014 TFECF 3 Comments

    Summary

    • The Internet of Everything (IoE) is the next phase beyond the Internet of Things and its development is accelerating.
    • There will be winners and losers in the IoE but first movers and pure play strategies will be well positioned to capture upside in the early phases of development.
    • ThinFilm is a pure play printed electronics company with the technology to be a leader and catalyst in the process to connect everything.
  • Ring Energy: Digging For Black Gold In All The Right Places
       • Oct. 11, 2014 REI 5 Comments

    Summary

    • The oil and gas boom in the US continues to gain momentum and there could potentially be many winners in the space.
    • The industry is highly fragmented and despite several mega cap companies, there are a high number of small independent drillers.
    • Combining the right macro environment with a capable management team within a small company can result in huge profits.
  • CBL & Associates: The Transformation Isn't As Easy As Shopping At The Mall
       • Sep. 29, 2014 CBL 1 Comment

    Summary

    • The CBL transformation is Under Way.
    • Industry dynamics favor high quality properties.
    • Despite the possible short-term struggle, CBL should perform well in the long-run.
  • Senior Housing Properties Trust: It's Fallen, Can It Get Back Up?
       • Sep. 25, 2014 SNH 8 Comments

    Summary

    • Senior housing is an attractive secular investment theme that may take a long time to play out.
    • The industry dynamics are changing benefiting REITs focused on specific asset classes in certain regions.
    • SNH has underperformed the healthcare REIT peers and will have to make some changes to succeed.
    • In the short-term, however, the best healthcare REIT investments may not be in senior housing.
  • Cohen & Steers: King Of REITs Moving In The Right Direction But It Will Take Patience For The Big Payoff
       • Sep. 17, 2014 CNS 1 Comment

    Summary

    • Some themes may take some time to play out so investors should be patient.
    • CNS is moving in the right direction with record AUMs and Revenues this past quarter.
    • With a strong reputation in the industry and industry tailwinds at its back, the stock should do well over the next few years.
  • Coresite Realty: It's Not Cheap, But I May Still Give Some Of My Data Dollars To This REIT
       • Sep. 13, 2014 COR 3 Comments

    Summary

    • The data consumption theme looks very compelling in light of current trends.
    • Sometimes you have to look along the value chain to find opportunities that haven't already been exploited.
    • It's fine to invest in a stock with less potential upside than a competitor if the investment rationale is still sound.
  • Ford Sales Are Revving Up, Stock Still Has 25% Upside
    Aug. 9, 2014 F 22 Comments

    Summary

    • Trying to time an entry point can sometimes result in a missed opportunity.
    • Ford stock has had a nice return since April but it looks like momentum is building in unit sales.
    • Despite the recent pop in the stock, it still offers 25% upside.
  • Digital Realty Keeps Cruising
       • Aug. 1, 2014 DLR 13 Comments

    Summary

    • Mobile data growth continues to drive demand for data management and storage resources.
    • Portfolio Repositioning for Digital Realty is about to gain steam in the second half of the year.
    • With the largest portfolio of Digital Centers, Digital Realty should be selling at a premium to peers.
    • Based on current FFO and expected growth in FFO in 2014-2015, the stock may hit $84.
  • A Breakdown Of Apple's ROE Tells A Cautionary Tale
    Editors' Pick • Jul. 21, 2014 AAPL 75 Comments

    Summary

    • ROE is an important metric that can provide investors with a company's ability to generate returns.
    • A high ROE is better than a low ROE but the trend and expectations of ROE are even more important.
    • While Apple's ROE has been very high, it has been on a downward trajectory over the last 3 years.
    • A Breakdown of Apple's ROE indicates what the driver has been and Apple's reliance on new product launches.
    • The trend can be reversed, but certain actions need to be taken by Apple.
  • Forget The Trains And Planes, Buy This Industrial REIT For A 20% Treat
       • Jul. 15, 2014 TRNO 35 Comments

    Summary

    • Economic expansion in the US should continue to benefit transportation companies and warehouse real estate.
    • Being positioned in some of the busiest ports in the US provides a competitive advantage for Terreno.
    • Despite its lofty valuation, the stock not only has upside but the potential for dividend increases as well.
  • Prospect Capital: With The SEC Issue Resolved, The Stock Has 50% Potential Return
    Editors' Pick • Jul. 7, 2014 PSEC 34 Comments

    Summary

    • Prospect Capital had a run in with the SEC that scared away investors but the issue was accounting related and did not affect operations.
    • Despite not having to restate prior year financial statements, the stock merely recovered to pre-SEC issue levels.
    • I think investors are still taking a wait and see approach but the stock has substantial upside of 50%.
  • Resource Capital: 14% Dividend Yield Is Nice, But I'm Putting This One On Ice
       • Jul. 4, 2014 RSO 45 Comments

    Summary

    • Resource Capital operations in a very lucrative niche within capital lending.
    • Despite a big drop in one of the most profitable areas of its portfolio, it seems to be focusing on the right growth drivers.
    • Despite a 14% yield, there is just too much inconsistency in the fundamentals of the company, and the dividend may be cut further.
    • Until fundamentals stabilize, I'd watch this one for now.
  • Bristow Group: Deep Offshore Drilling Is The Catalyst For A High-Flying Stock
       • Jun. 18, 2014 BRS 21 Comments

    Summary

    • The leader in oil and gas helicopter transportation is not resting on its laurels.
    • The growth in offshore drilling has provided the company with additional growth opportunities and it is positioning itself to be a market leader in the space.
    • The current market price doesn't seem to be giving the company credit for the growth in earnings expected over the next 2 years.
  • CBL & Associates: A Detailed Look At The Transformation Reveals A Potentially Sharp Upside Move
       • May. 30, 2014 CBL 9 Comments

    Summary

    • Investors don't like uncertainty and in many cases, it is avoided like the plague.
    • Fortunately for smart investors, the potential risks and rewards of uncertainty can be evaluated and opportunities usually are greatest when uncertainty is highest.
    • The uncertainty of CBL's portfolio transformation is not well understood and it is currently trading well below its intrinsic value.
  • Dogs Of The Dow Strategy Working So Far. What Should You Do Now?
    May. 21, 2014 MRK, MSFT, PFE 9 Comments

    Summary

    • The Dogs of the Dow strategy is a defensive way to invest in equities.
    • The strategy has performed well thus far but there is no rule that states you must continue to remain invested.
    • To determine which Dogs to keep and which Dogs to sell, online analyst estimates can be used as an input into your decision.
  • Cohen & Steers: The King Of REITs Poised To Provide Investors 42% Annualized Returns
       • May. 16, 2014 CNS 12 Comments

    Summary

    • Retail investors are still wary of the 2008-2009 portfolio declines and are increasingly looking for ways to diversify.
    • The retail liquid alternatives space provides uncorrelated returns to traditional asset classes and has been growing rapidly.
    • The companies well-positioned in the space, either because of reputational advantages or distribution capabilities, will be the major beneficiaries of RLA growth.
  • Annaly: Can You Invest In It And Still Sleep Well At Night?
    Apr. 30, 2014 NLY 51 Comments

    Summary

    • Mortgage REITs have very unique risks that may be more complex than some Equity REITs.
    • Prepayment risks and interest rate risks are the primary risks faced by mREITs.
    • Understanding mREIT risks and how Annaly mitigates them should give you some comfort if you decide to invest in it.
  • IBM: Can This Old Tech Company Still Provide A 17% Return?
    Apr. 23, 2014 IBM 3 Comments

    Summary

    • IBM is the epitome of old tech.
    • Somewhat forgotten, it has reinvented itself as an IT services company.
    • While I have been fond of its competitor Accenture, I think the tables have finally turned.
  • Google Android Has And Will Continue To Dominate The Global Smartphone Market
    Apr. 22, 2014 GOOG, GOOGL 35 Comments

    Summary

    • Google Android has dominated the global smartphone market.
    • With comparable features to the Apple iOS, the only differentiating factor in developing markets is cost.
    • As the lowest cost provider in collaboration with many other players in the mobile ecosystem, Google is positioned to continue to dominate smartphones.
  • Facebook: A Great Company, But The Pullback Doesn't Make It A Great Buy Yet
    Apr. 21, 2014 FB 57 Comments

    Summary

    • Great companies are relatively easy to identify but they can go through challenging periods and expensive valuations.
    • In Facebook's case, it is difficult to evaluate a proper price target because of its short history.
    • Relative to peers and optimistic estimates, the stock currently looks expensive.
    • The pullback may not be over, so investors would be prudent to wait until there is confirmation of another upward trend.