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  • J&J Should Not Consider Splitting Its Business  [View article]
    L, so what is the business reason for pharma, consumer, and med device to be in a single organization?

    Was the loss of AAA ratings a result of reorganizations, changed business conditions, both? Surely you don't claim that stability was lost due to reorganization? It's possible reorganization was the response to rapid changes in business conditions. Maybe we should look at former AAA rated companies who didn't divest or reorganize (except in bankruptcy, like GM). The list is much bigger.
    Jan 29, 2016. 09:11 AM | Likes Like |Link to Comment
  • J&J Should Not Consider Splitting Its Business  [View article]
    Jerry, this org chart is not "decentralized," in contrast what the company PR blurbs say - http://tinyurl.com/h8j....

    The actual operating division managers are quite outnumbered. Don't believe for a second that all the functions listed on that corporate chart are not duplicated in the operating division org charts too. Unfortunately it is not easy to see what corporate overhead is (per the 10Q) already allocated to the operating divisions.
    Jan 28, 2016. 10:55 PM | Likes Like |Link to Comment
  • J&J Should Not Consider Splitting Its Business  [View article]
    Interesting thoughts MF. While I support the XOM business structure, it is not at all a business comp with JNJ's. All of XOM's business is based on producing or using a (self-supplied) commodity, for sale to the same ultimate markets. JNJ's divisions have no business reason (beyond financial engineer... <cough> synergies) to be associated together.
    Jan 28, 2016. 10:31 PM | Likes Like |Link to Comment
  • Health Care REITs Cash Flow Analysis  [View article]
    Right you are on both counts. I saw Healthcare Trust twice and thought it was a NAREIT glitch rather than two similar names. As for 5 years, it's IPO was 6/12. It was previously private.
    Jan 28, 2016. 07:14 PM | 1 Like Like |Link to Comment
  • Health Care REITs Cash Flow Analysis  [View article]
    Also Bruce, NAREIT shows only 15 public, listed healthcare REITs (http://tinyurl.com/zfn...[0]=543). HTA is one of them, and has paid dividends longer than 5 years - so I am curious why you didn't include them.

    Thanks for the article.
    Jan 28, 2016. 06:13 PM | 1 Like Like |Link to Comment
  • J&J Should Not Consider Splitting Its Business  [View article]
    Thanks for the effort. I have some quibbles though. Some explanation of why a AAA rating is an appropriate filter in considering the merits of spin offs is warranted. Also, rather than look at spin offs that did not happen, a better comparison would look at the results of those that did happen.

    If more singularly focused business models are not better, what is the explanation for why the conglomerate model was largely abandoned in the late 20th century?
    Jan 28, 2016. 05:47 PM | Likes Like |Link to Comment
  • Distribution NOW: How Bad Can It Get?  [View article]
    It should probably be emphasized that DNOW is earnings negative even with no leverage. MRC is earnings and cash flow positive. I don't find MRC's total debt/total equity of .38 to be overly leveraged.

    I sold DNOW when it spun off since I already held MRC. The market has not distinguished a particular advantage (via share price differential) since that time.
    Jan 26, 2016. 07:49 PM | Likes Like |Link to Comment
  • PNC Financial: Still A Good Investment  [View article]
    Agree the warrants are the play. Also, a great arb opportunity with warrants bought below $20 against long dated options. Lots of free time value.
    Jan 25, 2016. 02:59 PM | Likes Like |Link to Comment
  • Some Important Lessons From National Oilwell Varco  [View article]
    A couple major points in the article are major mistakes, IMO. 1) A low PE should not be noted in isolation, else one could conclude that 2009 was not a buying opportunity. 2) "Extensive use" of company backlog is customer driven. NOV could not unilaterally do anything with regard to backlog - customers must accept deliveries. What actually happened was run-off of backlog and order cancellations.
    Jan 24, 2016. 07:08 PM | Likes Like |Link to Comment
  • Wal-Mart Isn't Just Closing Stores, It's Exiting A Business  [View article]
    Reading 100 10Qs and 10Ks seems to strain the limits of credibility. And that would be only the start of real tracking of available information.
    Jan 21, 2016. 01:37 AM | 1 Like Like |Link to Comment
  • Shire takes out Baxalta for $32B  [View news story]
    V38134, Why does share count matter? Wouldn't 25 shares of BRK.A be nice?

    I agree growth will ultimately slow, but typically organic growth can be pretty good until the company reaches a few times its current market cap. Don't forget SHPG will still be an acquisition target for some time to come, and the current earnings multiple is rather low which allows for expansion.

    JDoe probably owned an acquired company to have that basis.
    Jan 20, 2016. 09:02 AM | Likes Like |Link to Comment
  • Selling Dividend Growth Stocks: Reluctantly Ending 'Forever' Marriages  [View article]
    Self-evaluation is good. However, it is often also rationalization. There's no way (outside of counseling) to really know the difference. But one big clue is if the backstory tends to justify one's course of action.
    Jan 19, 2016. 09:41 AM | 3 Likes Like |Link to Comment
  • Flowserve - Tough Market Conditions To Persist  [View article]
    Thanks for the work. It seems that a good DD process must assign EBIT assumptions to the various business segments - of which O&G is the largest and most challenged. As you mentioned, some segments can (and I believe will) remain strong. The mispricing in the stock (to the extent there is any) will likely be revealed if oil prices actually do average mid $40s in the last half of 2016. I'm long FLS for a number of reasons here.
    Jan 15, 2016. 11:04 PM | Likes Like |Link to Comment
  • KMI Cut Its Dividend? No Big Deal If You Are A Dividend Growth Investor.  [View article]
    Of course, the capital loss represents about 35% of the author's annual dividend income (based on the KISS portfolio article). I congratulate the author on transparency, but selling income generators after such large capital losses should be factored into actual income performance. Isn't it DGI anathema to have to sell shares to produce needed funds? Isn't this case essentially equivalent in result?

    There really isn't sufficient history of portfolio performance to justify the apparent complacency.
    Jan 14, 2016. 01:00 AM | 5 Likes Like |Link to Comment
  • Shire takes out Baxalta for $32B  [View news story]
    Of course they have, 205427. And there is the question why a DGI like Willow would even own BXLT. It is probably an example of cognitive dissonance, or at least a failure in critical thinking.
    Jan 13, 2016. 11:54 PM | Likes Like |Link to Comment