Seeking Alpha

Thomas Kennedy

 
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  • The Stratospheric Growth Of ETFs Creates Significant Tailwinds For Blackrock And WisdomTree
    Mon, Nov. 10 BLK, WETF Comment!

    Summary

    • U.S. ETF assets under management have grown at a 29.0% CAGR since 2002, and are poised to continue delivering double digit growth rates.
    • Worries about declining expense ratios have created an opportunity within both mutual fund and ETF sponsors, as valuations imply modest growth.
    • ETF providers, as well as other investment management companies, enjoy competitive advantages helping to protect their high returns on capital.
    • BlackRock and Wisdom Tree represent the best opportunities within the industry, and both stand to benefit considerably from the continued growth of ETFs.
  • McDonald's Recipe For Low-Risk, 7%+ Dividend Growth And Attractive Total Returns
    Wed, Oct. 15 MCD 12 Comments

    Summary

    • McDonald’s dividend can be expected to grow at a 7%+ rate over the next decade, giving an investment in MCD an attractive total return.
    • MCD is inexpensive, trading 25% below its estimated fair value.
    • McDonald’s dividend benefits from a number of stable, low-risk sources of growth, making the company a reliable income source.
    • An investor putting new money into McDonald’s today can expect a yield on cost of around 7.5% by 2024, making MCD an attractive choice for those nearing retirement.
  • Ignore Sensationalist Articles About The Market Run-Up
    Mon, Oct. 6 SPY, SH, SSO 12 Comments

    Summary

    • Bulls and Bears can “Cherry-Pick” data, making the market look overvalued or undervalued.
    • Recent market movements make it easier to put a negative or positive spin on the data and create sensationalist articles.
    • It benefits an investor to take a long-term mindset, and view any market related discussion with a wide lens.
    • Look beyond the market’s recent run-up, to the long term wealth creation of equity investing.
  • These Currency-Based, Alternative ETFs Provide Better Diversification Than Gold
    Tue, Sep. 23 UUP 5 Comments

    Summary

    • UUP and UUPT have significant negative correlation with equities, helping stabilize a portfolio during market corrections.
    • The dollar appears attractively valued, giving these pro-dollar ETFs attractive return prospects.
    • Owning UUP and UUPT helps to reduce a portfolio’s standard deviation more efficiently than gold or cash.
  • How A Billionaire's Portfolio Can Boost Your Returns
    Tue, Sep. 16 AAPL, AMZN, BRK.A 5 Comments

    Summary

    • Many of the companies owned by people on the Forbes 400 exhibit attractive investment characteristics.
    • Many of these companies should continue to outperform due to high insider ownership and other attractive investment characteristics.
    • Investors would be well suited adding many of these companies to their watchlists.
  • Why This Spin-Off ETF Keeps Beating The Market
    Tue, Sep. 9 CSD 11 Comments

    Summary

    • Spin-offs have a proven history of outperformance, with CSD doubling the S&P 500’s return since its inception in late 2006.
    • Directly after a spin-off there is forced selling and underperformance by the spun off company, with outperformance occurring in the following months and years.
    • A spin-off gives both the parent company and the spun off company the ability to focus on their core operations.
    • Following a spin-off both the parent and spin-off are more likely to be acquired, leading to a portion of their historic outperformance.
  • Earn Equity-Like Returns With Less Risk In CWB, The Market Leading Convertible Bond ETF
    Mon, Sep. 8 CWB 3 Comments

    Summary

    • CWB, the largest convertible bond ETF, is one of the lowest risk methods of obtaining equity exposure.
    • A convertible bond has less downside relative to equity ownership, as it can be redeemed at par if prices decline below its face value.
    • CWB has posted spectacular returns since its inception in 2009, largely keeping pace with the S&P with less standard deviation.
    • High coupon payments and downside protection will help CWB outperform during sideways markets or corrections.
  • Protect Your Portfolio And Profit When Equity Markets Are Declining With The New CDS ETF
    Editors' Pick • Wed, Sep. 3 WYDE 15 Comments

    Summary

    • The first 2 CDS ETFs have just hit the U.S. market, making it easier for individual investors to gain direct exposure to credit risk.
    • With credit spreads near historic lows, it is inexpensive to bet on declining credit quality using WYDE, an ETF that is short high yield credit default swaps.
    • Credit default swaps have the potential to deliver strong positive returns when other asset classes are plummeting.
    • WYDE has significant negative correlation with equities, so owning a position in the ETF helps reduce portfolio volatility.
  • Hotel Industry: Competitive Factors And Discussion Of Hotel Franchisors As An Investment Opportunity
       • Tue, Apr. 15 IHG 1 Comment

    Summary

    • Both hotel franchisors and franchisees experience inflation resistant growth, helping to deliver positive real returns to investors.
    • Hotel franchisors exhibit strong competitive advantages and impressive returns on capital, especially amongst market leaders, making a strong case for investing in the sector.
    • The hotel industry goes through regular, predictable cycles, which affects the number of guests staying at hotels, the revenue per room, and growth in the number of hotels.
    • This market cycle dramatically affects the profits of hotel owners due to their high level of operating leverage, but has a diminished impact on franchisors.
    • Many of the top hotel franchisors have reached lofty relative valuations, and would warrant a pullback before purchasing shares, with IHG presenting the best buying opportunity.
  • Kinder Morgan Relative Valuation: KMI Vs. KMP And EPB
    Dec. 17, 2013 KMI 81 Comments
  • Berkshire's Earnings Are Understated By $4.5 Billion Annually
    Dec. 4, 2013 BRK.A, BRK.B 24 Comments
  • How Kinder Morgan Is Like Berkshire Hathaway And Why Both Should Outperform
    Nov. 22, 2013 KMI, BRK.A, BRK.B 47 Comments
  • One-Of-A-Kind Companies To Help Diversify Your Portfolio
    Nov. 4, 2013 CMP, CPRT, ICON Comment!
  • Despite Breaking New Highs, The S&P Is Not In A Bubble
    Oct. 28, 2013 SPY 3 Comments
  • The Junk Bond Market Is Telling You To Sell Stocks
    Oct. 22, 2013 SPY 17 Comments
  • Angie's List A Compelling Short Opportunity
    Feb. 28, 2013 ANGI 19 Comments
  • Why Netflix Is Outperforming
    Jan. 24, 2013 NFLX 7 Comments
  • Mobile Is Part Of A Greater Trend Which Could Hurt Satellite And Cable
    Jan. 15, 2013 VZ, VOD, CMCSA 6 Comments
  • A New Method For Calculating Fundamental Returns
    Jan. 10, 2013 MCD 10 Comments
  • Will Verizon Acquire Vodafone?
    Jan. 9, 2013 VZ, VOD 8 Comments
  • S&P 500 Market Valuation And Historic Returns
    Editors' Pick • Jan. 8, 2013 SPY 39 Comments