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  • The Stock Market Decline Is Entering Its Puke Phase  [View article]
    Enjoyed the article William, agree completely. Market cap has outpaced economic growth significantly since 2008 and that is with the fed pumping liquidity into the economy. The only thing is the GDP is only growing at 2%. Seems the liquidity is only pumping up the market cap. There are some buys out there but there are still some crazy multiples that need to be corrected. This is not a fear situation but an investment risk management situation where you may not time it exactly but recognize the risk and allocate accordingly.
    Feb 7, 2016. 03:27 AM | 1 Like Like |Link to Comment
  • What Tim Cook Must Do To Turn Apple Around, 2013 Vs. 2016  [View article]
    Although the suggestion of enterprise cloud is a good one I think, As MajorDude points out their cash flows are huge and even though growth is slowing it is still growth on huge numbers.

    With huge cash flows, lots of cash and good growth they still hovering with a 9 to 10 PE. The market seems irrational here because this is a value stock right now that also has growth (PEG of .32) making this a cashflow machine that has plenty of time to develop their next hit or success be it enterprise cloud, cars, TV's etc.

    I own Apple and am happy to buy on further weakness.

    Thanks for the article.
    Jan 31, 2016. 01:51 PM | 5 Likes Like |Link to Comment
  • Home Capital: A Buy Before Q4 Earnings Are Released  [View article]
    I am going to add Home Capital Group HCG to my portfolio based on their current fundamentals and to increase my exposure to real estate. Still I do think there is some risk on the over heated Canadian Housing market especially in Vancouver and Toronto. As a result I will wade in slowly.

    Not sure how much of their business is in these markets but average real estate price to average wages in Vancouver is around 11 or 12 (third highest city in the world) and Toronto is 8 (compared to New York at 6). This is a potentially overheated market.

    Reports say in Vancouver the average home owner is paying 66% of their salary to their home. I do believe this is inappropriate and lenders are taking on risk. Not sure where HCG stands on this.

    Most recently in the Vancouver area I saw a development is looking at offering new places with no down payment. This does concern me.

    Thanks for the article.
    Jan 31, 2016. 11:30 AM | Likes Like |Link to Comment
  • Helmerich & Payne Outpacing The Industry  [View article]
    I have a significant position in HP and it is because of the balance sheet. I do not know when oil prices will stabilize or what price they will stabilize but many oil companies are trading below book value (HP a little over) so I am holding ones I think can weather this storm. We will see years from now if this is a good move or not. thanks for the article.
    Jan 28, 2016. 08:14 PM | 6 Likes Like |Link to Comment
  • Is It Time To Buy Stocks? Not If You're A Long-Term Investor  [View article]
    It may be that you cannot compare market cap dollar totals to GDP but I would think the percentage rate GDP grows or does not grow versus Market Cap growth is relevant. From the low in 2009 the S&P has tripled while GDP grows at 1 to 3% annually. Similarly when GDP drops 4% in 2008 the market drops near 50%. These are overshoots in both directions creating good value in 2008 and poor value now.

    I think one can buy stocks but if they have a value perspective then it is only with careful stock picking. There are still some buys out there such as Apple with low PE of 11 and PEG of .34 with a strong balance sheet while others like Microsoft may be more risky at PE of 35 and a PEG of 29.
    Jan 24, 2016. 11:54 AM | 1 Like Like |Link to Comment
  • I Finally Found A Bank I Like: Toronto-Dominion  [View article]
    Thank you for the article, TD is an excellent bank.

    The 2008 problems in the US were local and I think Canadian stocks just fell with panic selling from what was happening in the states. Canada has a hot real estate market now and that could be a challenge along with a weak dollar and exposure to oil and commodities. Still Canadian banks have more cash than debt 11 times in the case of Scotia Bank which I think will make them more resilient in a real estate crash than the US banks were.

    I hold TD, BNS, and RY Canadian banks and will buy more if they drop further.
    Jan 12, 2016. 03:20 PM | Likes Like |Link to Comment
  • The Worst Mistake Apple Investors Can Make Right Now  [View article]
    The market is an amazing collection of strategies opinions and emotions. I do not see how a company that grows like Apple and has a strong balance sheet sells off at these multiples but it appears it does. Apple sells off and has a negative 2015 year at a PE of 11 while MSFT stock appreciates by close to 16% at a PE of 37 with negative growth in the past 12 months.

    The markets do not comprehend value in the short term but it is these inefficiencies that are good for value investors to pick up quality at cheap prices.

    This most definitely is not a troubled company as one comment tried to compare to RIMM and Nokia, Apple is just a stock being mis-priced by the market.
    Jan 7, 2016. 10:09 PM | 4 Likes Like |Link to Comment
  • Why I Was Wrong Shorting Apple  [View article]
    If it does it is a great entry point. Shares are cheap even now. The only dent in the company is waiting for a new innovation to come and take the market.

    Still there is enough growth and cashflow from existing product lines along with an extremely strong balance sheet to make this a good value.

    The market could bring it down (on the short term it is more emotion that moves prices) and if it does many good value investors will take advantage of it for a long term hold.
    Dec 25, 2015. 01:32 PM | Likes Like |Link to Comment
  • Why I Was Wrong Shorting Apple  [View article]
    Look forward to that for adding to my position.
    Dec 25, 2015. 01:27 PM | 1 Like Like |Link to Comment
  • What To Make Of The Recent Fed Rate Hike  [View article]
    Thanks Bret, your picks are ones that I always research as many fit my fundamental requirements.

    I own both GILD and AAPL and have strike prices to buy more. Also looked at JPM from this article and like what I saw fundamentally.

    As for the rate hike I think that the market was set to panic if they did nothing. I think they will be very dovish in 2016 unless something picks up in the economic growth. Currently I do not feel there are enough strong signs yet that the economy is heating up and inflation is increasing.

    Merry Christmas everyone.
    Dec 25, 2015. 01:24 PM | Likes Like |Link to Comment
  • Why I Was Wrong Shorting Apple  [View article]
    I like both companies a lot. I fee at 37 times earnings,PE to growth ratio of 30 MSFT is more expensive than I like. That is the multiple of a smaller faster growing company.

    Apple on the other hand has a PE of a little over 12 and a PEG of .38 looks like a great value for a company that still shows as a growth company. It is a great combination of value and growth.

    Both are excellent companies just one is selling at a discount (AAPL) and the other at a premium (MFST).
    Dec 24, 2015. 05:13 PM | 1 Like Like |Link to Comment
  • Qualcomm: Is There Life After Samsung?  [View article]
    They have been a successful company for over 20 years and have a strong balance sheet to show for it. Anything can happen especially with so much cash on the balance sheet.

    There are headwinds but many long term companies have survived and thrived after some adversity.
    Nov 5, 2015. 09:28 PM | Likes Like |Link to Comment
  • Even Without Growth, Microsoft Is A Safe Investment  [View article]
    All the best to you Bahamas, will see what the future holds. I am out of MSFT due to valuation but would like to hold if I could get better valuation.

    Cheers, Doug
    Oct 27, 2015. 10:46 AM | Likes Like |Link to Comment
  • Beating Back Fear For Income Investors  [View article]
    I am late replying Chowder. I like to manage my risk and buy when it looks like there is good value. I like your dividend growth model but do want to have money when good dividend stocks are down so I re balance which is not a true dividend strategy that does not worry about the stock price and only the dividend growth. All the best.
    Oct 26, 2015. 12:28 PM | Likes Like |Link to Comment
  • Even Without Growth, Microsoft Is A Safe Investment  [View article]
    Hi Bahamas, I think MSFT is doing a great job but this is expensive.

    I do not see growth from Sept 2014 to Sept 2015. Even with good guidance a PE in the mid 30s should be a high growth company. I find it hard to believe that MSFT will be growing at over 25% a year considering their size. That is the type of growth required to carry such a high PE.

    If they do grow at these levels then I am wrong but for me, at these levels, it is increasing risk in my portfolio. Still I hope you are right that they an grow at these levels because it is such a great company.
    Oct 26, 2015. 12:23 PM | Likes Like |Link to Comment