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  • Getting Constructive On Microsoft [View article]
    I liked good dividend paying stocks even when I was very young (150 years or so ago.) My reasoning was not that I cared for the dividend much but because I always felt those stocks had a better "floor cushion" than the non dividend payers. My personal experience through the years seems to have backed this up. If I'm looking for high dividends, I simply
    buy preferred stocks. I guess we each have our own stories. Mine has historically been that I did better with common stocks which also paid
    decent dividends.
    Sep 30, 2015. 12:21 PM | 2 Likes Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch: Linn Energy Causes Havoc [View article]
    Yes, Walter, I agree with you. For some reason EVERYONE ignores preferreds. I have been investing in them for years and have done very well with them. Sometimes I ask myself why I even bother with commons.
    I owe my success in the market over many, many years to these wonderful, relatively safe instruments which IMO are a much better choice than bonds for many reasons. Incidentally, they have done extremely well over the past six month period which is being mentioned above. Given their high yields, relative safety, stability and liquidity, the lack of interest in them in the investment community seems uncanny to me.

    Sep 6, 2015. 11:40 AM | 5 Likes Like |Link to Comment
  • Microsoft: An Extreme Ebb And Flow Example [View article]
    Agreed! Buying a solid company at a reasonable valuation seems to be the
    answer for us non-traders. If the company continues to perform reasonably well, even if there are a few stumbles along the way, and we reinvest dividends, the stock price will eventually catch up to company performance. We cannot control market prices but we can keep our patient eye on the fundamentals.
    Thank you, Eli, for another good article!
    Sep 3, 2015. 08:53 PM | 3 Likes Like |Link to Comment
  • Intel launches new Skylake processors [View news story]
    In spite of the fact that I have an ipad, smart phone, etc., I, for one, would be absolutely lost without my laptop and desktop! May they continue to make them and improve them because, for me, personal computers are most definitely my preference, where I spend the bulk of my time and get the most enjoyment. I'd be surprised if I were then only one who feels this way.
    Sep 2, 2015. 09:05 AM | 22 Likes Like |Link to Comment
  • Stifel upgrades Microsoft to Buy, expects solid profit/dividend growth [View news story]
    Typical of many analysts. They almost always abandon stocks when their
    prices are being battered down but when they are flying high, they join the
    parade. This is unfortunate because we expect them to look beyond the
    emotional tides and give us good, earnest, fundamental reasons for their
    advice based on their solid research.
    Aug 13, 2015. 12:18 PM | 7 Likes Like |Link to Comment
  • Intel's Inventory Helped Create An EPS 'Beat' [View article]
    To Author,
    I would like to make one comment but first...yes, it is true that LIFO is
    preferred on the income statement and FIFO on the balance sheet.
    Someone mentioned that Intel in on FIFO and you mentioned that Intel
    inventory....... is in a falling price environment. If both these statements are true, then Intel's ending inventory hurt profits in the quarter to some degree. I say this because, in a period of rising prices, a company on FIFO derives a "false" amount of profit from its ending inventory. In a period of falling prices, the opposite would be true. I am simply stating the accounting facts and have no firsthand knowledge of Intel's inventory procedures or trends in chip inventory prices. LIFO will always give more
    accurate profit results whether prices are rising or falling.
    Jul 18, 2015. 06:30 PM | Likes Like |Link to Comment
  • Intel's Q2 Results Are Nothing To Celebrate [View article]
    Your comment is very well put! All we can do is to offer a possible,
    plausible cause for the pop and subsequent drop, especially since
    no one could have known about the one-time tax benefit in the few
    seconds following the announcement.
    Not one of us is in a position to know the precise reason for stock
    price behaviors so I find your reasoning to be very logical.
    Jul 16, 2015. 06:50 PM | 1 Like Like |Link to Comment
  • Microsoft Continues To Exploit Android's Dominance In Mobile [View article]
    Martinko, I agree with your view and would add that, having been in
    the position of receiving stock options myself (bonus), I did not view
    the option as an investment but rather as compensation as soon as it
    was exercisable. My point is that it was not a matter of whether or not
    I thought the stock was a good investment. I, and many others. simply
    sold when we could to supplement our income. Some of the recipients
    did not possess any stock in any company since they had no interest
    in investing in the market. Obviously, I cannot speak for the officers and
    directors of Microsoft.
    May 27, 2015. 12:16 PM | 1 Like Like |Link to Comment
  • Johnson & Johnson And Finicky Share Prices [View article]
    Very nicely done! Thank you, Eli.
    I have known so many people who continue to
    confuse good company performance with good
    stock performance in the near term. This article
    illustrates the point perfectly.
    Apr 24, 2015. 05:12 PM | 3 Likes Like |Link to Comment
  • Internet Explorer heads toward retirement [View news story]
    In its heyday, Netscape was far superior to any other browser.
    Mar 18, 2015. 05:15 PM | Likes Like |Link to Comment
  • What If Your Share Price Stagnates... Forever? [View article]
    “Watching a stock price rise, even at a rate greater than earnings growth means that you've likely purchased at sound valuation and yield point and the market is now realizing the wisdom of your purchase. I'm not sure how
    one could possibly find that troublesome.”
    The reason one would find that troublesome is because when a stock rises at a greater rate than the company’s earnings, its price earnings ratio climbs, by definition. The stock now becomes overvalued. If this trend continues, you can bet on a correction. You now have to be careful (and concerned) about the reason that this is happening. Unless there is some unusual growth story involved I would be very careful about owning such a stock. In any event there is no question that you are safer with a company whose earnings outpace its share growth than vice versa. In the first instance you are looking forward to some likely good share gains. In the second instance (unless there is a valid reason for this) you are looking forward to some likely share decreases. All of this assumes that we are talking about income type investors. If you are a trader, there a lot more considerations other than yield, price earnings ratios and safety.
    Mar 4, 2015. 06:51 PM | 1 Like Like |Link to Comment
  • What If Your Share Price Stagnates... Forever? [View article]
    Eli, while the message of the article is that “stagnant” is not a bad thing for a growing company, what it indirectly points out is that “stagnant” forever is impossible for a growing company. There is no way a growing company can ever have a price earnings ratio of 1 or 2 and a yield of 50 to 100%. All of which leads us to the obvious conclusion of the importance of fundamentals to the serious investor. Company growth will unquestionably eventually lead to share price growth, and as you point out, for that serious investor, it really doesn’t matter when.
    Mar 4, 2015. 12:26 PM | 4 Likes Like |Link to Comment
  • Johnson & Johnson: The Benefit Of A Stagnant Share Price [View article]
    Yes, it could still be stagnated. If JNJ were selling at half its current price, its price earnings ratio would be fantastic and its dividend yield would be
    double what it is now. Would that be a reason to avoid it? Yes, if you
    are a trader but absolutely not if you are a conservative investor. How
    could you ignore it in such a situation, knowing that you would be looking forward to ever increasing dividends and increased earnings? Of course this is all hypothetical but if the same situation continued and five years from now it was still selling at 50, think of the incredible yield you would
    be getting then. Remember, we are taking about companies that are fundamentally sound but their share prices are not keeping pace with their performance. For me such companies are gems. But I do understand that not all of us have the same investment objectives so I've always maintained that there is no one right or wrong way to investing. Additionally, I'm the first to admit that we all want to see our companies' share prices rising. My original comment was only meant to defend the
    author's premise that you should take advantage of a solid company's stagnation period.
    Feb 28, 2015. 01:07 PM | Likes Like |Link to Comment
  • Johnson & Johnson: The Benefit Of A Stagnant Share Price [View article]
    To Buffalo,
    No one disputes the fact that we are all happier when our stock price increases.
    The point is that if a good company's shares stagnate, we should use
    that opportunity to buy more shares so that we will be even happier when
    those shares eventually increase.
    Feb 27, 2015. 10:22 AM | 3 Likes Like |Link to Comment
  • Johnson & Johnson: The Benefit Of A Stagnant Share Price [View article]
    Thank you for the article. One of the investment strategies that the article clearly
    illustrates is that if you have a solid, well rated, well liked business that continues
    to improve its earnings and balance sheet each year (or almost every year) and,
    especially if it is increasing its dividends each year, the fact that the share price
    does not increase becomes a golden opportunity to add to your position. While none of us can predict the future of stock prices in a given company, it becomes apparent that at some point in time, the "market" will catch up to what is happening. Of course, you have to be careful and make sure that there isn't a valid fundamental reason for the stagnation.
    If you like a solid company which is earning a dollar a share and selling for $15, you should like it a lot more if it earns $1.30 a share and selling for $14, provided of course that the fundamentals have not changed.
    Unfortunately many of us become disillusioned when we don't see price appreciation corresponding to company performance and we tend to doubt ourselves...not adding to our position and sometimes selling out our position. This is the very type of situation where we should be adding to our position.
    Feb 26, 2015. 10:19 PM | 4 Likes Like |Link to Comment