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Vash Patel

 
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  • The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
    Why not use excessive cash to expand and increase revenue growth?
    Feb 12, 2013. 02:09 PM | Likes Like |Link to Comment
  • The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
    While you're welcome to agree or disagree with the final conclusions I make, the numbers themselves are factual as reported by Reuters. As some of the other comments have pointed out, they did in fact payout more than 100% of earnings, though it was through a special dividend (which you can argue can be excused for tax purposes).
    Feb 12, 2013. 02:07 PM | Likes Like |Link to Comment
  • The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
    I'm glad you're reconsidering the safety of the dividend. I think dividend investors should be the ones that are most weary of this stock, at least until they prove some sort of dividend consistency.
    Feb 11, 2013. 08:48 PM | Likes Like |Link to Comment
  • The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
    You're absolutely right, my mistake. I should have been more careful, as they paid 177% of EPS, not FCF.

    Reuters reports an increase from $925 M to $1.287 B which means you are correct about the 40% increase. However, consider the fact that in 2010 they paid out 102% of EPS and 146% in 2012 (according to F.A.S.T Graphs). I agree that it's nice when companies distribute excess capital to shareholders but not at the expense of future growth.

    They only paid out a maximum of 20% before 2008 when the recession hit and payouts have been anything but stable since (46% in 2008, 49% in 2009, 102% in 2010, 56% in 2011, and 146% in 2012). While it's up to you to determine what this may mean, I don't believe the potential for reward here outweighs the risk, especially for a dividend investor.

    I appreciate your critique and it helps me make sure that I check and double check everything I write about so please keep it coming!
    Feb 11, 2013. 08:44 PM | Likes Like |Link to Comment
  • Time To Buy Cliffs Natural Resources: An Undervalued Dividend Stock [View article]
    I'm still bullish.
    Feb 10, 2013. 02:13 PM | Likes Like |Link to Comment
  • 3 Stocks With Outstanding Ratios To Buy Now [View article]
    Cool find!
    Jan 31, 2013. 03:35 AM | Likes Like |Link to Comment
  • 3 Stocks With Outstanding Ratios To Buy Now [View article]
    Finviz: http://bit.ly/tw65d5
    Jan 30, 2013. 12:10 PM | Likes Like |Link to Comment
  • Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
    I'm not sure I agree with sticking only to dividend stocks. With all the people out there following the "dividend stocks only" mentality, we may have a bubble on our hands.
    Jan 10, 2013. 04:16 PM | Likes Like |Link to Comment
  • Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
    Hey James, thanks for the comment. I should have clarified but the industry is referring to basic materials, not just iron ore. The figures were obtained from OneSource Information Services.
    Jan 7, 2013. 10:53 PM | 2 Likes Like |Link to Comment
  • 5 Stocks Ready To Swing Up For A Diversified Portfolio [View article]
    It wouldn't make sense to dissolve a completely new type of business that's been profitable since inception despite investing as much as they have in growing their fleet, and I think Avis will see that. They may slow down expansion until they get more of a gauge at how successful this type of business can be but if it still proves profitable I expect them to speed up expansion to cities across the US. The bottom line is you're investing in ZIP being the "next big thing" in car rentals and you have to give it time to grow in to that role.
    Jan 2, 2013. 03:31 PM | Likes Like |Link to Comment
  • Small Investors 'Facebooked' In Zipcar Buy [View article]
    IPOs generally outperform the market in any given year, I've found. Seems like the exceptions are usually the ones that are hyped up to no end, like Facebook. In that regard I agree 100%.
    Jan 2, 2013. 01:13 PM | Likes Like |Link to Comment
  • 5 Stocks Ready To Swing Up For A Diversified Portfolio [View article]
    While I can't see the current state of the economy being kind to premium brands, I personally wouldn't count them out solely based on what you see in-store right now. Especially now that brands are focusing more and more on online sales, it's important to look at the financials and keep emotion out of it. Either way, it's up to you to weigh the risks which you seem to be doing.
    Dec 27, 2012. 03:01 AM | Likes Like |Link to Comment
  • 5 Stocks Ready To Swing Up For A Diversified Portfolio [View article]
    While it may not be growing as fast as you're looking for, I think it's got a lot of room for growth as I said in the article. It's a really new business model that people aren't used to yet but I don't see why it wouldn't replace typical car rentals altogether (most of which are losing a lot of money right now) in the next ten or fifteen years.
    Dec 24, 2012. 12:52 PM | Likes Like |Link to Comment
  • Skullcandy: Poster Child For Short Investors? [View article]
    I agree with you completely, though I wasn't aware of the CFO's address on the cash conversion issue. Good to know, reaffirms my investment!
    Nov 23, 2012. 07:58 PM | Likes Like |Link to Comment
  • Skullcandy: Poster Child For Short Investors? [View article]
    I agree with all of those as reasons shorts may be using to justify keeping positions open but in my opinion, that's a weak foundation to invest on at best. I'd call it speculation without a doubt.
    Nov 23, 2012. 07:57 PM | Likes Like |Link to Comment
COMMENTS STATS
141 Comments
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