I would note that Amdocs does not have any large contracts expiring before 2017 and that it is extremely rare for customers to switch providers, even when contracts expire. This makes it extremely unlikely that business falls apart.
Another point I would make is that Verizon is a very small customer for them. Verizon is the only telecom that has their own in house proprietary billing system. If they could ever convince Verizon to outsource to them it would be a massive win.
Chimera Investment Strings Investors Along With Return Of Capital Dividends [View article]
Taxable earnings are not the same as economic earnings. CIM owns junior bonds. They accrue value as the senior bonds are paid off. CIM does not recognize the accrued income on a taxable basis until they sell.
Chimera's Fair Value: 35% Upside Potential On A High Dividend mREIT [View article]
Im curious if you tested your analysis against the announced second quarter economic book value of $2.87? If you run your analysis against second quarter data do you arrive anywhere close to that number?
That is precisely the reason that Im short O as a hedge to my ARCT long. O is also aggressively acquiring new properties and has to do so in much larger size.
70% of ARCTs tenants are investment grade while 20% of O's tenants are investment grade. O has a plan to bring that number up to 50% over the next 5 years so it seems O is trying to be more like ARCT in that respect.
The average remaining lease term for ARCT is 13 years while for O it's 11.1 years.
If ARCT trades at the same valuation as O it would need to go up 30%
70% of ARCTs tenants are investment grade while 20% of O's tenants are investment grade. O has a plan to bring that number up to 50% over the next 5 years so it seems O is trying to be more like ARCT in that respect.
The average remaining lease term for ARCT is 13 years while for O it's 11.1.
If ARCT trades at the same valuation as O it would need to go up 30%
The following quote is from the most recent O conference call: "and again, I’ll allude to what I just said, which is some of the things that aren’t investment-grade will be cut, and if they have very high cash flows, we’ll be happy with that.
But right now, we’ve gone from zero to close to 20% in between 15 to 20 today, and in just a couple of years, and we’d be very happy five, six years down the line if that was 50% to 60%."
In essence O wants to become more like ARCT in five years
ARCT has better quality tenants and trades 30% cheaper. Being a landlord is not rocket science and its hard for me to accept that O's management is deserving of a 30%+ premium.
The AFFO is the adjusted funds from operations. This is the metric that is used with REITs, similar to EPS. I used the guidance the companies have given. Its on their earnings transcripts.
ARCT is a relatively new company and acquires properties with long term triple net leases, typically well over 10 years. O is a more seasoned company so they have older properties where the leases have ended or the tenants have gone bankrupt.
Obamacare Part I - Will Insurance Companies Survive? [View article]
Employers could have always saved on costs by not offering insurance. Obamacare does not change this. On the contrary there is now a penalty for discontinuing coverage, whereas no penalty existed before.
Your argument about not needing to offer healthcare is quite a stretch. Employees will still want healthcare. The average person does not make the calculations that you are talking about and does not have $20,000 a year sitting around to pay for it when its needed. Most Americans live paycheck to paycheck.
Amdocs Offers Long-Term Opportunity [View article]
Amdocs Offers Long-Term Opportunity [View article]
Another point I would make is that Verizon is a very small customer for them. Verizon is the only telecom that has their own in house proprietary billing system. If they could ever convince Verizon to outsource to them it would be a massive win.
Chimera Investment Strings Investors Along With Return Of Capital Dividends [View article]
Chimera's Fair Value: 35% Upside Potential On A High Dividend mREIT [View article]
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
The average remaining lease term for ARCT is 13 years while for O it's 11.1 years.
If ARCT trades at the same valuation as O it would need to go up 30%
A REIT That Could Yield 30% [View article]
The average remaining lease term for ARCT is 13 years while for O it's 11.1.
If ARCT trades at the same valuation as O it would need to go up 30%
A REIT That Could Yield 30% [View article]
But right now, we’ve gone from zero to close to 20% in between 15 to 20 today, and in just a couple of years, and we’d be very happy five, six years down the line if that was 50% to 60%."
In essence O wants to become more like ARCT in five years
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
A REIT That Could Yield 30% [View article]
ARCT is a relatively new company and acquires properties with long term triple net leases, typically well over 10 years. O is a more seasoned company so they have older properties where the leases have ended or the tenants have gone bankrupt.
Obamacare Part I - Will Insurance Companies Survive? [View article]
Your argument about not needing to offer healthcare is quite a stretch. Employees will still want healthcare. The average person does not make the calculations that you are talking about and does not have $20,000 a year sitting around to pay for it when its needed. Most Americans live paycheck to paycheck.