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purpleboarder

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  • The Truly Battle-Tested Bank With 8%-9% Growth [View article]
    Noob question.... Is there a tax penalty (% of divvy withheld) for Canadian companies? I assume so, but would like to confirm.... Tim, great article as usual....
    Aug 18 07:53 PM | Likes Like |Link to Comment
  • Coke chooses caution, sees too much risk in swallowing all of Monster [View news story]
    ...."KO has been one dog of a blue chip coming out of the recession, and even since the turn of the century."....

    Huh? Were you talking about the 2-fer stock split a couple of years ago? KO, like many other money-minting blue chips, had insane P/E ratios after the "dot-bomb" run up to 2000. So with a P/E ratio in the 30-50s range, of course stock price didn't grow, as earnings were "growing into" the stock price over the last 10+ years. What a disingenuous statement.

    But of course you seem to forget that the dividend doubled, then doubled again since 2000, giving you a yield between 10-12%. I'll take that dog of a stock every day of the week, and twice on Sunday. For the record, big fan of V and DIS as well.....
    Aug 18 07:45 PM | 1 Like Like |Link to Comment
  • Coke chooses caution, sees too much risk in swallowing all of Monster [View news story]
    ..."All the infrastructure in the world won't help a secular decline in interest in your core products." (in the US market)...

    Wait till KO takes off in places like India, Brazil, BRICs, etc. The party is just getting started. Did you take this into consideration? Further diversification from the caffeinated 'core' products, increasing the distribution infrastructure, increasing exposure to fast-growth countries whose middle-class is starting to explode. Yeah, let's write off KO.. PFFT.
    Aug 17 07:38 PM | 1 Like Like |Link to Comment
  • Coke chooses caution, sees too much risk in swallowing all of Monster [View news story]
    That's the beauty of KO. If they aren't the first to market w/ a 'disruptor' or market-growing beverage, they'll imitate it, or buy it outright. So KO aren't innovators. Who the hell cares? As long as they react and adapt, and keep that 8-10% dividend growth going for another 40 years, I couldn't care less if they don't 'innovate'....

    Many people forget that KO has been diversifying away from caffeinated beverages for the past 20-30 years. If they were stagnant, they wouldn't have 150+ beverages that include juices (MinuteMaid), water, energy drinks, health-water, etc....

    Q: Who's going to challenge KO's worldwide distribution infrastructure?
    A: N-O-B-O-D-Y

    I like those odds going into the future, being the 'stagnant' company that it is.
    Aug 17 10:55 AM | 1 Like Like |Link to Comment
  • Coca-Cola Is Probably Overvalued, But So What? [View article]
    Martin,

    ....."The reality though is that those who purchased 20 years ago have not quite matched the S&P 500."... If you are talking about the late 90's runup in rediculous P/E ratios of KO (30-50x, IIRC), and wish to use that convenient time period for KO's evaluation for your argument, I'll concede. But today's P/E ratio is historically in line.

    ......"The truth is that the company is out of growth possibilites and the world is gradually turning to other beverages ".... You do know that KO is just getting started overseas in India, China, Russia, Brazil, etc? One has to dig deeper to understand that KO is more about DISTRIBUTION, along w/ Product. Do you think InBev bought Anheiser Busch just for it's decreasing market share of BUD in the US? No, it's about distribution..... Also, you do know that over the past 30 years, KO has been diversifying away from carbonated beverages (sport drinks, water, juices, etc), right?


    ........"I sold recently after a nine year holding period.".... I'm curious, what was the average P/E ratio during your purchases of KO during that 9 year period?

    Good luck w/ the proceeds of your sale of KO. I'm going to follow Buffet on this one...
    Aug 6 11:42 AM | 1 Like Like |Link to Comment
  • Coca-Cola Is Probably Overvalued, But So What? [View article]
    JNPFL,

    You are sorry that you are long KO, and that it's 'dead money'? Are you sorry about getting a dividend check that grows by 10% every year for the last 40 years? (ie, your dividend doubling every 7 years?)

    As for Buffett, he won't be selling ANY KO while he's alive. That you can count on....
    Aug 4 12:19 PM | 2 Likes Like |Link to Comment
  • Highlights From Solazyme's Q2 2014 Conference Call [View article]
    HotP, ....."Failed to announce capacity expansion plans"... Really?

    They <<just>> got Moema underway; what else do you wantfor now? Don't you think they would want to reveal production ramp up first within EXISTING facilities, before another new plant opening? BTW, they also announced a 43% increase in the Clinton facility.

    I think they are wise/prudent in confirming successful ramp up in the existing plants before they go off announcing a new plant. Which in my mind, would be a "PR Pandora's Box". Why? Because a new plant announcement would beg a whole slew of questions: "what product are going to be made (Encapso, AlgaVia, Algenist, fuel?).. Who are the customers? Or are they expanding relationships w/ existing customers? How will this be funded? share dilution and/or joint venture? .....As we all know, SZYM is tight-lipped in divulging its customers identity to begin with; announcing a new plant, real or imagined, is pure folly.

    Finally, you can't have it both ways. Do you want a new plant opening, or do you want to increase the 'burn rate' of available cash or open yourself to the critics with a possible share dilution to fund that new plant?

    I think the BoD of SZYM is walking the tighrope just fine, as it slowly builds out production, keeping its customers happy w/ anonymity, and keeping the financials in balance. If holding this stock is keeping you up at night, you should just get out, and move on...
    Aug 2 09:02 AM | 7 Likes Like |Link to Comment
  • Highlights From Solazyme's Q2 2014 Conference Call [View article]
    StoneLion, I agree. I've been long SZYM since the summer of 2012. After each quarterly CC, i get anxious and impatient. Moema's delay drove me crazy. BUT, adding to your comment, longs like us must realize that although we 'think' we are in the 6th inning of this 'ball game', we are in fact only going into the 2nd inning.....

    My take on the latest CC call was that Status Quo is good. No bad news, no surprises, no production glitches/shutdowns... (I'm laughing by remembering the Yahoo MB clown-trolls spouting 'Moema bad batch' FUD.).... Good, solid and slow development of customers, products and production. I wasn't expecting mind-blowing #s, since Moema has been online for only what, a month or so? But the 43% production increase out of Clinton really eased my mind (that, and no bad news/shutdowns at Moema)....
    Aug 2 08:45 AM | 2 Likes Like |Link to Comment
  • The Linn Energy 2-Step: Reinvest, Then Stop Reinvesting [View article]
    I like Tim's strategy. This is what I got out of the article..... Instead of taking an initial position in a non-risk blue-chip, put that towards LNCO, and reinvest dividends) for 5 years. Why 5 years? Maybe that's what it will take to get a monthly payout large enough to outweigh transaction costs? I dunno. I think its a personal choice, and round # to work with. This creates the $$ machine to then purchase your blue chip stocks. Maybe I'm oversimplifying this, but it allows you to buy more blue chips sooner, while after 5 years, you are slowly pulling out your initial investment in a risky equity, and slowly transitioning those proceeds into blue chips..... I started a position in LNCO for this very reason, but Tim shares my idea in a much more eloquent way, and shared it with us.
    Jul 30 06:35 AM | 6 Likes Like |Link to Comment
  • Hiccups for Diageo in China [View news story]
    I'd like to add to my position, so any bad news (and a resulting lower price), is good for me...
    Jul 28 10:23 AM | 1 Like Like |Link to Comment
  • Winters unveils FixBigSoda.com [View news story]
    Buffet cares because his fiends are on the board. His silence on the compensation was deafening, and lame.
    Jul 23 08:02 PM | Likes Like |Link to Comment
  • Dividends Don't Matter In Retirement Either [View article]
    I'm a DGI investor that has around 67 - 75% of my portfolio in DGI stocks. I certainly don't see this as 'religious', and use the remaining portfolio for more riskier, high-growth opportunities. I usually find the zealous in those camps that go out of their way to bash DGI. I don't bash the "Total Return" guys, but will defend my strategy which represents the majority of my retirement acct.. This is the difference between the two camps.
    Jul 20 10:57 AM | 2 Likes Like |Link to Comment
  • Dividends Don't Matter In Retirement Either [View article]
    L49, I totally agree. You will NEVER hear DGI advocated on the radio, or by the talking heads on TV/Cable. Why? Because they know they won't make a DIME off of you, by being a DGI investor.
    Jul 20 10:50 AM | 1 Like Like |Link to Comment
  • Dividends Don't Matter In Retirement Either [View article]
    The existence of this article is to simply stir the pot of the DGI crowd. When you get a sentence like...

    "To be more specific, dividend growth is a value finder, much like water dowsing. Dividend growth is that divining rod, it finds that value or potential for continued earnings power"..... and then say that "Dividends simply don't matter", makes me believe the author is simply looking for clicks, while rehashing the obvious.

    The dividend is the proof that the company has the earnings power, the earnings growth, etc. It's not the cause of the success of a company, but the effect. It's the litmus test that not only tells you that the company is healthy, but the board of directors (BoD) also recognizes the importance of their shareholders. Many great/successful/healthy companies don't have these 'shareholder friendly' traits.

    So, in a sense, dividends, and the commitment, persistence by the BoD, needed to continue a growing dividend IS PARAMOUNT. Do you want a really strong, successful company, AND have that company run by a BoD that is shareholder friendly? I do, and my portfolio reflects that.

    I could have saved all of your readers time by distilling this article into 2 or 3 bullets.

    - For long term, buy and hold investors, look to David Fish's list of Dividend champions/challengers/... and note which companies are growing dividends, and at what rate. Spread out your holdings across different industries for diversification.

    - Dividends are a 'bell-weather', the 'canary in the coalmine' on the health of a company. It's not the cause of the success of a company, but the effect.

    - Don't chase yield; it's not sustainable, and can't be relied upon for decades of buy-hold scenarios.

    - A DGI investor doesn't need to allocate 100% to DGI companies. It can be 1/2, 2/3rds, or 3/4s of your portfolio. Use the remaining portfolio for REITs, small/microcaps, whatever. There is no hard rule for DGI investing.

    To me, dividend growth IS the most important aspect. It confirms the health of the company. Yes, it's based on the earnings growth and success of a company, but represents SO MUCH MORE. Dividend growth identifies that rare company that has a BoD with the diligence to commit itself to shareholders. Dividends confirm the intentions of the management that run the company. Many successful companies don't share that belief.

    I'd rather live off of dividends, than deplete my acct of those shares that give me those dividends. The dividends of those rare companies on David Fish's list are WAY more stable than stock price. What happens in a long-term down market, and you rely on selling shares to fund your retirement? You get screwed. Worst-case for DGI companies? They freeze the dividend growth.
    Jul 20 10:37 AM | 13 Likes Like |Link to Comment
  • Apple: The Party Is Over; Initiating With A Bearish View [View article]
    I think the author is implying that AAPL is fairly valued, with only 7% upside... I'm guessing with much more long-term downside, to only his perceived 7% upside, you get a bearish view. Maybe 'mildly bearish'? I got no skin in the AAPL game, so I'm indifferent, but that's my take on the author's view..
    Jul 10 01:31 PM | 3 Likes Like |Link to Comment
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