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Stanley Barton

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  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]
    I do not see any reason to change my opinion on RAS, and the drop in price looks like a buying opportunity for the long-term. Here is another SA article to review:
    Oct 2 08:09 PM | Likes Like |Link to Comment
  • 2 More Triples And A Double; What's The Next Home Run? [View article]
    Good info.

    In video processing a better long-term value is AMBA, but PXLW looks like a good trading stock.

    Same goes for CAMP as a better long-term alternative to GSAT.

    Just my opinion.
    Sep 29 10:48 AM | 3 Likes Like |Link to Comment
  • CIBT Education Group Cashing In On Overseas Chinese Students [View article]
    I have owned this one for some years even though it has been dead money. Fact is, it has real value and the day will come when the stock price reflects that. Management is solid.

    Incidentally, the best of all is XUE...20% growth, no debt, $3.59 cash in the bank and stock price of $4.39! No brainer. Better Price to Earnings, Book and Sales than the others, also.
    Sep 29 01:34 AM | Likes Like |Link to Comment
  • This Oversold High Dividend Stock Goes Ex-Dividend This Week [View article]
    Thanks for the write up on MPW. Another article mentioning MPW was published on SA this weekend and the link is below. This article compares FAD (Funds Available for Distribution) for about a dozen Healthcare REITS. It is notable that in that analysis MPW ranks #1 in current FAD growth, #1 in lowest price to FAD valuation and #1 in highest yield. That is a best of breed trifecta in top growth, valuation and yield. It is probably undervalued as you purport.
    Sep 8 04:19 PM | 1 Like Like |Link to Comment
  • The Self-Evident Truth About Healthcare REIT Valuations [View article]

    Healthcare REITs are very unloved right now, but for a long-term holding I am keeping MPW. I think it is more oversold than the others because of the public offering. Those institutional investors scooped up those shares at about 10% higher than current price less than a month ago. An article in SA today contends that it is undervalued:

    Sep 8 12:20 PM | 1 Like Like |Link to Comment
  • The Self-Evident Truth About Healthcare REIT Valuations [View article]

    Thank you for a very informative and enlightening analysis. I own several of these, and I will offer some contrarian points for consideration.

    First, I believe the property type weightings are from asset value data (balance sheet) rather than revenue (income statement) from each asset type, although FAD starts with revenue. I think you will find that certain asset types contribute higher profit margins and a higher percentage of revenue, commensurate with risk.

    My personal opinion is that Senior Housing, currently the subject of a Congressional Committee concerned that many seniors are being priced out of the market by high rents, is quite vulnerable to pricing pressures, either from government intervention, but more so from low-cost, subsidized competition. The high valuations make the sector susceptible to a steeper fall...just my opinion. In conference calls, hospital CEOs articulate that the visibility of their rates is pretty clear now, after some years of concern after Obamacare first became law. The visibility for Senior Housing rates is less clear to me until this issue is resolved and solutions, if any, defined.

    I could quibble with the comment that loan income is a negative, especially when the majority of the loans outstanding are variable rate arrangements, as is the case with MPW, that will contribute higher income in a rising rate environment.

    Speaking of MPW, according to the tables, it has the highest current FAD growth, lowest price to FAD and the highest distribution yield of all the listed stocks, which apparently conflicts with the thesis that higher FAD growth deserves higher valuation. According to this analysis, MPW should be a screaming BUY. I do not think that MPW is being penalized so much for its loans or hospital business, as much as recent issuance of more shares (at a much higher price than today's, incidentally). I think that MPW is a bit of an aberration, as this one skews the analysis by a short-term oversold situation, and you are probably wise in excluding it from the comps.

    "For example; why does HR, with zero dividend growth over the last several years, sell at the highest current of 2013 price/FFO valuation and a below sector average yield? Why does OHI, which has out-performed the sector for several years when it comes to dividend growth, sell at the lowest 2013 price/FFO valuation and a well above sector average yield?"

    The subject of dividend growth is not as black and white as many think. Since they must distribute most of their income, when excess funds accumulate, REITs can either raise the distribution or issue more shares and keep the payout stable, or a combination. For instance, the MPW management strategy has been to utilize high funds growth to regularly issue more shares to obtain financing for accretive growth acquisitions, while maintaining coverage for a large but stagnant distribution. Income investors and traders do not like this, but high-margin business expansion can be a good thing in the long run. I think this may answer your question why some of the stocks with poor dividend growth are still valued generously.
    I do understand that you recognized up front that there were several factors that could modify the valuations. Having said that, I believe that your thesis makes good sense and accurately sheds light on some misunderstood valuations.
    Sep 8 02:25 AM | 4 Likes Like |Link to Comment
  • $2 Med Stocks With Macro Tailwinds [View article]

    Here is the contact info from the earnings release...I have not contacted them:

    Surie Liu
    +86 10-5166-0080

    I have in the past discussed this company with the following contact:

    The Equity Group Inc.
    Adam Prior, 212-836-9606
    Senior Vice President

    I do not know if Adam is still involved. DHRM is a long-term value holding in our portfolio, so I am not checking with them so often, especially as they appear super-undervalued right now.

    I hope this helps.

    Sep 1 03:08 PM | Likes Like |Link to Comment
  • Q2 2013 Disclosures Affirm Reading International Remains On Track Yet Undervalued [View article]

    Thanks very much for the answers. Following the company for a couple years, I did sense that the management of RDI is quite savvy in their transactions. Good to know Mr. Cotter is tax-aware...not always the case.

    Aug 13 04:14 PM | Likes Like |Link to Comment
  • Q2 2013 Disclosures Affirm Reading International Remains On Track Yet Undervalued [View article]
    Thanks for the informative article. I am an investor in RDI and have patiently awaited its discovery. Actually, I also love the Angelika film centers...a much better movie experience than other cinemas.

    I have two questions:

    1. In the latest report, RDI volunteered that it had $10MM in cash "not restricted by loan commitments." I suppose that it was trying to indicate that it had good coverage for its debt and ability to borrow more if it wanted. However, this is also a hint that RDI could pay a nice dividend if it chose to. I sometime think that RDI could convert to a REIT and possibly do better in the market...thoughts?

    2. If RDI has all the tax losses to counter income, why did it pay 29% tax on income in the latest quarter?

    Although I would like RDI to be discovered, I also feel comfortable with its value, and I enjoy going to the Angelika and knowing I own a piece of it.

    Aug 13 11:33 AM | Likes Like |Link to Comment
  • Acme Delivers Jet-Propelled Growth With Innovative Products... Beep! Beep! [View article]

    Thanks. I noticed ACU has gotten some attention lately...maybe from this article. It is a nice company with earnest and honest management.

    Jul 31 08:28 PM | Likes Like |Link to Comment
  • How To Play The Surge In Precious Metals [View article]

    Thanks for the informative and well-executed article. I do have a different opinion about investing in gold ETFs. Basically, these vehicles are required to keep a wide variety of miners in their holdings, and I believe that many miners are about to report seriously disappointing earnings, if not this quarter...then the next. These will be accompanied by announcements of shutdowns of marginal operations, lay-offs and canceling expansion and exploration plans. This is the result of the spot price being near or below the "sustaining cost" of many miners. I think that picking individual miners with low costs will prove much sounder than ETFs which will necessarily absorb the hits of several disappointing holdings. At this time, careful research and watching a few eggs in the gold miner basket will beat blanket diversification with a fund that dilutes the good with the bad...just my two cents.

    You may want to check my SA article on the subject:

    Thanks again,

    Jul 23 12:16 AM | 1 Like Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    This group represents stocks that have appeared in previous articles because they had some characteristic that would create growth or a special situation or simply were undervalued by typical metrics of PE, Price to Sales, Price to Book, Cash Flow per share, etc. These were not the product of a screen specifically for income stocks. I do not start looking just for yield. However, if I find a stock that I think is solid and happens to pay a good yield, that is all the better. As a matter of policy, even our most aggressive portfolios are expected to yield at least 2%, so we are always looking at yields. If I were to use a screen, I would probably start with something like PE<20, Price to Book<3, Prince to Sales<2, Dividend<60% of cash flow, EPS growth>5%, Yield>2%.

    Hope that helps,

    Jul 21 11:54 AM | 1 Like Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    We get frequent requests for a utility pick, and, as I mention, I really do not like those in general. EXC has been bad for investors, but the worst appears to be behind it. After the cut, it can afford to increase dividend in the future, so, as far as utilities go, it compares favorably with peers.

    By the way, we do not own EXC nor do any clients yet, so we are still sleeping pretty good with our holdings. Frankly, we do not prescribe to the traditional market attitude of some that "bigger is better." We are not afraid of well-run little companies your moniker (Spanish for "I...little smooth one" for readers)

    Thanks for reading the article.

    Jul 20 03:23 PM | Likes Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    Thanks for introducing me to HMN. It looks like it has been a big winner, and it has some good value metrics, as you mention. I need to do more research, but it looks like the PE ratio on future earnings is a little higher than the ones I am looking at and growth is slow, per YAHOO stats. I will put it on my watch list and dig a little deeper. Dividend looks solid though.

    Another small FL insurer I like is FNHC, although the dividend is a little low. It may be a good growth opportunity for those not so dividend driven.

    Jul 20 01:12 PM | Likes Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    BME normally declares a big special dividend at the end of the year, and I include that in the yield. BME has a large portion of realized and unrealized capital gains, so the dividend yield looks solid for some time to come, without "return of capital" treatment. This is a dividend portfolio, and I don't think there is another biotech and health care investment with this kind of reliable yield. Also, it writes call options on its holdings to increase income. Obviously, if the holdings do really well they may get called, and so the capital gains on this fund will be held back by this strategy. On the other hand, the strategy will produce income and buffer downturns.

    Hope that helps.

    Jul 20 01:04 PM | Likes Like |Link to Comment