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richjoy403

richjoy403
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  • Does Cisco Systems Belong In A Dividend Stock Portfolio? [View article]
    Anonymous -- We get it, you offer a lot of negative opinions about CSCO, and have nothing whatever to say about where it's earnings are going from here.

    This is your profile:
    << Trying to figure out how to earn 5-7% in dividends consistently and safely using an ETF or Mutual fund that does not fluctuate too much, and with 2-3% capital appreciation yearly.
    SNAPSHOT
    Description: Occasional Investor. Trading frequency: Infrequent
    Interests: ETFs, Mutual funds >>

    So as you are not an stock investor, what symbols do you own?

    Rich
    Mar 28, 2015. 11:52 AM | Likes Like |Link to Comment
  • Does Cisco Systems Belong In A Dividend Stock Portfolio? [View article]
    Anonymous -- So you're that guy behind me who mentioned the plane was in Miami 15 years ago!

    When I boarded CSCO, I was far more interested in where CSCO's share price is going than in where it had been 15 years ago...so yes, you may refer to my outstanding TRs as short term. In return, I'll refer to your comment as myopic, and devoid of insight.

    However, let's put the past behind us...if you would like to make your case that CSCO has no investible FUTURE from this point forward, I would be pleased to consider it.

    Rich
    Mar 28, 2015. 10:11 AM | 5 Likes Like |Link to Comment
  • Prospect Capital: A Cheap Cigar Butt? [View article]
    << Now it is up to you to decide if Prospect Capital is a strong, durable business or a cheap cigar butt. >>
    _________

    I knew PSEC to be a role model for risk, and obviously miles from being investment-grade when I took a modest speculative position in January.

    If PSEC is to become a strong durable business, it has a long way to go in demonstrating it.

    Rich-unck:12hrs
    Mar 28, 2015. 08:42 AM | 1 Like Like |Link to Comment
  • Does Cisco Systems Belong In A Dividend Stock Portfolio? [View article]
    << And while Cisco stock has been rallying for the past four years, more than doubling since bottoming out in mid-2011, the price of Cisco still is 65% below its old bubble high. >>
    ______

    I was disappointed the author provides no hint of the relevance (or even context) to his drive-by reference to Cisco's year 2000 (bubble) high--a year investors were responsible for driving CSCO shares to $77, on a p/e of 161 times earnings. He also didn't bother to mention CSCO is now trading at fwd p/e of only 12!

    (Put another way--A New York bound passenger boarding a plane in Chicago, upon being told the plane had been in Miami 15 years earlier, may politely reply"interesting" but also find an isolated and trivial factoid of little importance.)

    If yield is the income investor's sole objective, greater yields are available elsewhere. As portfolio diversification is among my objectives, CSCO works for myself.

    I invest for total returns from dividend-payers, and have been long CSCO since late 2012. Thus far, my total returns are very attractive:
    16.8% in 2013, and
    27.3% in 2014 (both handily exceeding the market)

    Rich-unck:12hrs
    Mar 28, 2015. 08:16 AM | 5 Likes Like |Link to Comment
  • Kraft, Heinz announce merger [View news story]
    Dave -- I took WB's reply to mean BRK would nominate 3 directors--not that Buffett will personally sit on the BoD.*

    3G will have 6 BoD seats, plus the chair and CEO--that's strong operating control, and represents their larger equity contribution to Heinz Kraft.

    Between them 3G/BRK's 9 seats constitute control the BoD's 14 seats (existing Kraft directors get 5 seats). However, it is also possible the 8 votes of unified BRK and Kraft directors could thwart a 3G proposal. All in all, I see no problem with it.

    The remaining 49% owner shareholders (that includes SDIs) will merely go along for the ride. As a practical matter, that's not a problem for myself, as it is not different compared to other largecaps in which institutional shareholders and management combine to overwhelm any influence of the disorganized smaller shareholders.

    Rich

    * BUFFETT: RIGHT, AND WE'LL BE ON THE BOARD OF DIRECTORS. THERE WILL BE SIX DIRECTORS FROM HEINZ. THERE WILL BE FIVE DIRECTORS FROM THE OLD KRAFT OPERATION. AND THREE OF THOSE BOARD MEMBERS WILL BE FROM BERKSHIRE HATHAWAY. IT'S A PERMANENT HOLDING ON OUR PART.
    Mar 28, 2015. 07:20 AM | Likes Like |Link to Comment
  • Kraft, Heinz announce merger [View news story]
    Dave -- Thanks for posting that link.

    Like you, I was watching live, and missed some of the details. (I wonder why CNBC prints everything in CAPS? Everyone knows it's much harder to read.)

    Rich
    Mar 28, 2015. 06:53 AM | Likes Like |Link to Comment
  • Prospect Capital: A Cheap Cigar Butt? [View article]
    ...and how do you describe PSEC longs?
    Mar 28, 2015. 05:40 AM | Likes Like |Link to Comment
  • Kraft, Heinz announce merger [View news story]
    dk -- Reread your earlier comment...it seems you intended to included "book" before value, but you did not!

    As for the rest...
    Mar 27, 2015. 04:51 PM | Likes Like |Link to Comment
  • 'Krafting' Success For My Dividend Growth Portfolio [View article]
    I expect your gains in KRFT and GIS will result in a bit of swagger added to your gait in any walking you do over the weekend.
    Mar 27, 2015. 03:30 PM | Likes Like |Link to Comment
  • Kraft, Heinz announce merger [View news story]
    dk -- I'm confused by your use of the phrase "trading at $75 and also valued at $75", so let me first make this point:

    As far as the market is concerned, 'price is truth', and the value of shares traded equal their trading price, and that price reflects all that investors know at any given point. We can argue that point till the cows come home, but let's accept it for our purpose. (Note also that considerations such as intrinsic or fair value are up to each investor having such concerns to compute by the method of his choice).

    That said, let's address a couple examples...(a) buy KRFT the day before the X-date; and (b) buy KRFT on the X-date:

    (a) If you buy KRFT at $75 the day before X-date, you are entitled to the $16.50 dividend when paid later. Assuming KRFT closed at $75, on X-day the exchange will adjust KRFT's share price down to $68.50, and it will trade on its merits.

    (b) If you buy KRFT on the X-date (and it closed the day earlier at $75), you can expect it will open at an adjusted price of $68.50, trade on its merits, and you are not entitled to the declared next dividend.

    [Both transactions incur the same commission.]

    I am equally confused by your last sentence, as just earlier you accepted the share price is adjusted down for the 55 cent dividend...yet you immediately suggest the $16.50 dividend should not result in a downward adjustment to the share price.

    I've gone as far as I can go. I suggest you seek assistance from your tax consultant or a knowledgeable member.

    Rich
    Mar 27, 2015. 03:00 PM | Likes Like |Link to Comment
  • Mr. Valuation's Best Valued Ideas For Retirement And Dividend Growth Portfolios: Cisco [View article]
    Thanks Chuck -- I look forward to your next in this series.

    In hindsight, I was fortunate to have determined in 2012 I should diversify away from a reliance upon staples, utes, & telecoms, and add a few tech stocks to take advantage of their anticipated price growth.

    Over a series of limit-buys, I built positions in CSCO, INTC, & MSFT. Total returns in 2013 and 2014 exceeded my expectations (and their dividend growth is also attractive).

    Rich-unck:12hrs
    Mar 27, 2015. 02:11 PM | 3 Likes Like |Link to Comment
  • 'Krafting' Success For My Dividend Growth Portfolio [View article]
    Mike -- It is a bit of a surprise KRFT is continuing to advance.

    Perhaps as interesting, with all the media chatter about the 3G/BRK strategy, it appears some of the mentioned candidates are getting a bit of a 'halo effect', which of course can wear off...i.e., GIS & K.

    MDLZ hiked nicely on the KRFT news, but backed off today--perhaps upon news the CEO got a 50% bump in total compensation.

    Rich
    Mar 27, 2015. 01:23 PM | Likes Like |Link to Comment
  • Kraft, Heinz announce merger [View news story]
    dk -- investors wanting to buy KRFT, and knowing it was valued at (for example) $75 the day before going X-dividend by $16.50, are quite unwilling to pay the same $75 and not receive that large dividend (nor should yourself).

    As for your reference to that the $16.50 was "not coming from the company's pocket"...I make no claim to being an accountant or attorney; however, I believe I can make a case that is directionally correct if not technically correct...the $16.50 dividend is not to be paid by 3G/BRK; rather, the negotiated deal almost certainly requires 3G/BRK to provide the agreed upon monies to KRFT, where they are placed into the cash account to cover the checks to be written to shareholders on a date to be determined following shareholder vote.

    Rich
    Mar 27, 2015. 11:42 AM | Likes Like |Link to Comment
  • Canada seeks energy pipeline safety guidelines by 2016 [View news story]
    lorn -- I certainly hope you are correct.
    Mar 27, 2015. 10:42 AM | Likes Like |Link to Comment
  • General Electric: Big Iron + Big Data = Big Outcomes [View article]
    << ...john candy or chris farley (oh wait they're dead aren't they??) >>

    falconetti -- You chose to mention 2 dead persons for a reason.

    Again, it's time to discontinue this nonsense.
    Mar 27, 2015. 10:17 AM | Likes Like |Link to Comment
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