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Tom Au

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  • Intel Could Hit A Share Price Of $40 By 2016 [View article]
    OK, Intel's market share grows from 85% to 100%, at which time its growth will exactly match that of the market.
    Jun 17 12:31 PM | 1 Like Like |Link to Comment
  • Why Dividend Investing Will Always Be Better Than Buying The Entire Stock Market [View article]
    Basically, stocks that offer both dividends and growth have outperformed stocks that offer growth and no dividends, and others that offer all dividends and no growth (like T).
    Jun 17 09:06 AM | 2 Likes Like |Link to Comment
  • How Dividend Growth Investing Fits Within A Complete Portfolio [View article]
    Dividend (and to a lesser extent, lower-yielding) divident growth stocks give your portfolio "bond" exposure.

    One way to look at it is that you need income exposure. But if dividend stocks are giving you better yields than the "current yield" of the bonds of the same company, you will actually do better incomewise with the stocks than with the bonds. Never mind the superior potential for capital gains.
    Jun 14 02:21 PM | 1 Like Like |Link to Comment
  • Is Real Estate Ever A Wise Investment For Retirees? [View article]
    "For many years, you could buy good-quality property, as much as you could afford, and you were almost guaranteed to make money."

    That was true for about sixty years, basically six decades out of seven or eight.

    But we are now in the "seventh" or "eighth" decade.
    May 30 09:44 AM | 1 Like Like |Link to Comment
  • 3 Dividend Champions With High ROE - Do Any Belong In Your Portfolio? [View article]
    I often like stocks of companies that have high ROEs if they also have meaningful book values. But these three companies don't.

    If the book value is just a smidgen above zero, the ROE could be "infinite." That would be a "high" ROE.
    May 29 10:54 AM | 0 Likes Like |Link to Comment
  • I Am Not A 'Gold Bug' But I Do Like Newmont Mining For The Dividends [View article]
    The nice thing about Newmont and its dividend is that you get a double-barreled "hedge." That is, a nice dividend if inflation stays low, and an inflation hedge if the price level rises significantly.
    May 29 09:27 AM | 1 Like Like |Link to Comment
  • 3 Latin American Small Caps Showing Signs Of Undervaluation [View article]
    The difference between Brazil and Argentina is HUGE. A company may be fairly valued in one market, and the same (or similar) stock would be overvalued in the other.
    May 24 10:27 AM | 0 Likes Like |Link to Comment
  • Magic Formula Stocks Year To Date And The Top 5 [View article]
    PDLI is the only dividend paying stock in your group. Most (if not all) of Greenblatt's stocks pay some dividend.

    "Dividends" may explain why his stocks outperformed your backtest.

    But your version of his strategy is otherwise robust.
    May 23 01:41 PM | 1 Like Like |Link to Comment
  • A Winning Investment Strategy [View article]
    A lot of people lose in the marketplace because they "swing for the fences" and strike out.

    A way to win the market is to "play not to lose," go for singles and walks instead of home runs.

    As Ben Graham (or Warren Buffett) would say: Rule 1: Don't lose money in the market. Rule 2: Don't forget Rule 1.
    May 22 02:48 PM | 0 Likes Like |Link to Comment
  • 7 Banking Stocks To Buy For Current Yield And Future Dividend Growth [View article]
    How many times has PNC cut their dividend in the last 25 years or so (before re-raising it)? How much higher is it today than in say, 1987?

    I grew up in Pittsburgh and that's why I ask.
    May 22 02:18 PM | 0 Likes Like |Link to Comment
  • 8.7% Dividend Payer Linn Energy Was Dissed At Ira Sohn - Is There Reason To Worry? [View article]
    The company lost money (on paper) on the hedges, but will make it back up on the higher prices for the underlying commodities. That seems to be the relevant relationship.
    May 21 10:09 AM | 10 Likes Like |Link to Comment
  • The Most Important Thing To Know If You're Using Stocks As Fixed Income [View article]
    A stock can be analyzed as a combination of a bond plus a call option. About 15 years ago, "optionality" was a key ingredient in valuing a stock. Nowadays, people pay more attention to the "bond value."
    May 20 03:41 PM | 1 Like Like |Link to Comment
  • Top Notch Long-Term Dividend Growers [View article]
    According to another article on the site, the "sweet spot" for dividend yields is about 2%. No yield, means the company is strapped for cash. But if the yield is greater than 3%-4%, maybe the company is all yield and no growth.
    May 20 03:03 PM | 0 Likes Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Harley-Davidson [View article]
    It's interesting when the two P/E metrics gve prices that are as close as is the case here.
    May 20 01:18 PM | 0 Likes Like |Link to Comment
  • Bill Ackman's Favorite Stock: Should It Be Our Favorite Too? [View article]
    In this case, it 's because Ackman is an "activist" manager who is trying to shake up things and force management to create "shareholder value" instead of taking a "passive" position.
    May 20 01:05 PM | 0 Likes Like |Link to Comment
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