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The Dangers Of Growth Rate Predictions By Management
- Studies have shown there is no tangible benefit for long-term investors in companies issuing earnings guidance.
- Spending time issuing earnings guidance also takes away from management spending time on long-term growth strategies.
- IBM is an example of a company too hung up on issuing guidance.
Sears Holdings: The Disaster Will Not Abate
- The demise of Sears seems quite inevitable at this point.
- Creative and controversial maneuvers by Eddie Lampert are being used to address liquidity issues.
- The core business of Sears is shot, and the valuable assets in real estate are being sold frequently.
- I do not trust management, which has been so profound in destroying the value of this company, to now be able to realize value of significance for shareholders.
Luxury Is The Key For Volkswagen's Success
- Moving forward, the luxury brands are going to be the main drivers of success for the company, led by Audi and Porsche.
- Luxury auto sales are booming worldwide, but appetites for the products are particularly voracious in Asia.
- Higher volume, lower margin vehicles should also give the company some boost, as new models are set to be released.
Ford's Problems Appear To Be Short-Term
- Europe, South America, and recalls are present problems straining profitability.
- Asia remains a bright spot for the company.
- Problems may persist through 2015, but are not long-term.
- Exciting developments are set to occur in 2015.
- 3.5% dividend yield should help to keep long-term investors happy in the interim.
Why Union Pacific Is My Favorite Stock
- Union Pacific has an almost unassailable economic moat.
- Key metrics are showing consistent improvement.
- The business is very easy to understand, which helps immensely when making investing decisions.
Adidas Discount Is Very Appealing
- Shares are currently available at a tremendous discount from earlier this year.
- The causes for the price decline should not be long-term in nature and should not be excessively difficult to remedy.
- Adidas possesses huge brand recognition. On a currency-neutral basis, overall sales are still growing strongly.
Caterpillar Is Still Making Nice Profits Despite A Terrible Mining Environment
- Caterpillar's revenue problems are associated with the volatile mining area.
- An adequate job has been done maintaining profits in the face of this, perhaps showing investors the company is more diversified than commonly thought.
- Exactly when the turnaround in mining will happen remains very hard to predict.
Deere Is Cheap And Attractive
- Shares are down over 5% since May due to a guidance statement.
- Management has a history of being very conservative with guidance, leading to earnings being beaten in 5 out of the last 6 quarters.
- No problems Deere faces are long term, and with a strong and rising dividend and healthy buybacks, present share prices are attractive.
Dr Pepper Snapple: Unremarkable, But Reliable
- Like all companies involved with carbonated soft drinks, Dr Pepper Snapple is seeing stagnant sales in this area.
- 10 calorie alternatives, teas, juices and seltzer water are helping to make up the difference.
- With a healthy and growing dividend, and a management actively buying back stock, Dr Pepper Snapple offers a small, albeit steady and secure return.
Starbucks: Promising Growth Trends Slightly Offset By Potential Volatility In Coffee Prices
- Performance since the recession has been excellent, as Starbucks has a string of impressive yearly and quarterly streaks in areas such as revenue and comparable same-store sales.
- China and Asia Pacific should remain Starbucks' highlight for the foreseeable future.
- Weather-related issues have the potential to be somewhat of a roadblock to success.
Church & Dwight Equals Consistency
- Just at the start of international expansion, a lot of room for growth is available in the forthcoming years.
- Such consistent earnings growth, low volatility in share price and continual stream of dividends is unique for a mid-cap company.
- The conjunction of organic growth and wise acquisitions is attractive.
USG Corp.'s Future Looks Bright
- After facing bankruptcy and the housing market collapse, USG finally has a clear coast for prosperity.
- EPS numbers are back in positive territory, and wise deleveraging is taking place.
- USG has strong support from Warren Buffett, and Berkshire Hathaway now owns over 30% of the company.
On Berkshire Hathaway's Dividend Policy
- Berkshire Hathaway's shareholder sentiment has seen some movement towards a desire to see the company pay a dividend.
- Warren Buffett is strongly against paying a dividend, and outlines his reason for being against it concisely.
- Some areas in Buffett's reasoning leave itself open to critique, but overall his stance is the correct one for Berkshire to take currently.
- Berkshire's lack of a dividend payment being beneficial for its shareholders is not a policy which can or should necessarily be implemented by other companies.
Berkshire Hathaway's Insurance Businesses Display Resiliency Amid Rising Catastrophes
- Climate-related natural disasters have been steadily increasing in recent decades.
- Berkshire's insurance businesses have a fair amount of exposure to these events.
- Unlike most of the property/casualty insurers, Berkshire has steadily been producing underwriting gains in this environment.
DaVita: Short-Term Headwinds Could Create Buying Opportunity For Long-Term Investors
- DaVita's reliance on third-party payments are causing some short-term headwinds.
- DaVita's services are essential and must be provided for, providing long-term security for investors.
- Worldwide demand for dialysis is anticipated to grow 6-7% per annum.
Aflac's Japanese Risks Are Overstated
- The weakening yen has been masking the true financial performance of Aflac.
- Diversification away from Japanese government debt into higher yielding instruments should begin to take place.
- With continued sales growth in Japan and the U.S. along with a strong capital position, Aflac shares offer a solid value at the present price.
Travelers: Shares Of Insurer Available At A Cheap Price
- Weather-related catastrophes, pricing pressures and low interest rates have been a recent burden on the company.
- While there is a lack of meaningful top-line growth, Travelers is a top quality underwriter with excellent risk management.
- Shares trade at a discount to historical valuations. On top of this, share buyback activity is substantial and dividends are attractive.
- Despite Attractive Projects, Cheniere Shares Not A Bargain
- 5 Sectors, 5 Great Dividend Growers
- Chicago Bridge & Iron: Excellent Play On Energy Infrastructure
- McDonald's: Stick To The Basics
- Take Advantage Of MasterCard's Recent Discount
- ConocoPhillips's Oil Sands Mistake
- Suncor Energy: Long-Term Superstar
- National Oilwell Varco: Undervalued Gem
- Buffett Bet Wrong On Energy Before, Is He Wrong Again?
- Stop Worrying About IBM's Revenues
- Berkshire Hathaway Streak To Most Likely End
- Buffett Is Benefiting From U.S. Rails, You Should Too
- Chicken Little Inflationists
- Reserve Releases Must End Soon For Banks
- Bitcoin Is The Ultimate Fiat Currency