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  • Krispy Kreme Doughnuts CEO Discusses F2Q13 Results - Earnings Call Transcript [View article]
    " We do not view the program as a short term callous but rather as a platform that we can build upon for the long term."

    I believe the word should be "catalyst" not "callous"
    Aug 29, 2012. 12:49 PM | Likes Like |Link to Comment
  • Johnson & Johnson Vs. Medtronic: Healthcare Dividend Growth Analysis [View article]
    You're right. The $2.5 billion is both dividends and cash buybacks. But Medtronic has indicated a commitment to return 50 percent of free cash flow to shareholders and it does not seem to be able to currently do that out of its cash flow from the United States.

    Here's what the CEO said during the latest conference call:

    "Yes, well, as we've indicated, and we've been very clear about this overall, our U.S.-OUS cash split, I mean, we generated again about $4 billion of free cash flow in FY '12. Again, 60% to 65% of that is being generated outside of the United States, with 35% to 40% in the U.S. And so when we are returning 50% back to shareholders, by its very nature, which has to come from the U.S. cash piece, that does require us then at this point in time to, obviously, continue to have the debt levels slightly going up in the U.S. while cash builds outside of the United States. So our net cash position improves, but the reality is we are taking on more debt in the U.S."

    I agree the problem isn't an immediate one. However, as an investor who likes to buy dividend growth stocks for the long term (i.e., 10 years or more), I am concerned about the company's ability to continue to commit to returning 50 percent of free cash flow to shareholders when it does not seem to be growing revenue in the U.S. Perhaps the best thing to do is just monitor the situation closely.
    Jun 2, 2012. 01:22 AM | Likes Like |Link to Comment
  • Johnson & Johnson Vs. Medtronic: Healthcare Dividend Growth Analysis [View article]
    If MDT's future growth is likely to be international, how will that impact its ability to continue raising its dividend payments? In its latest earnings call, MDT indicated that it generated roughly $1.6 billion in cash flow in the United States, but paid $2.5 million in dividends. It borrowed the difference to pay the dividends. To increase its dividend, it is not likely that it will have to continue the borrowing and will there be a point where that strategy is no longer feasible?
    Jun 1, 2012. 03:12 AM | 1 Like Like |Link to Comment
  • Star Bulk Carriers' CEO Discusses Q1 2012 Results - Earnings Call Transcript [View article]
    "Finally, I’d like to underline the Star Bulk Carriers is a Marshall Islands company not a great company."

    I suspect he meant to say "Greek," not "great."
    Jun 1, 2012. 03:08 AM | 2 Likes Like |Link to Comment
  • 5 Companies That Aren't Takeover Candidates [View article]
    PBI's contract in Australia was its new digital mail delivery system called Volly. That system is supposed to be launched in the United States later this year. In its conference call, PBI also referenced a new deal with Facebook, but gave very few details.

    It looks like the company is trying to transform itself, but it is really too early to tell. I think the picture will become clearer later this year when we get more details about the success of its new projects.
    May 20, 2012. 11:18 PM | 1 Like Like |Link to Comment