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poortorich

poortorich
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  • Abbott Labs Still Undervalued [View article]
    Humira is very important to Abt. Perhaps people are afraid of another Pfizer/lipitor and thats why the price has been stagnant. There are key differences however between abt and pfe.
    1)abt has a history of making multiple small strategic acquisitions that make sense to counter the day when humira goes off patent
    2) their earnings are much more predictable because they are so diversified. If you ever go to a hospital, you would be surprised how many abt products are used.
    For such an outstanding pharm blue chip, its still small compared to a jnj or pfe. I think of abt as a junior jnj with a bit more room to grow
    Mar 8, 2011. 05:01 PM | 1 Like Like |Link to Comment
  • Dwight & Church: A Company to Put on Your Watch List [View article]
    The time to buy CHD was 10 years ago when it was still a featherweight , capable of being a multibagger. Now that its a middleweight, it it encrouching on some heavy weights. Regardless, it should still provide decend returns going foward.
    Mar 8, 2011. 01:02 AM | 1 Like Like |Link to Comment
  • 9 Stocks With Major Share Repurchase Plans [View article]
    A stock repurchase makes sense to me only if these conditons are met
    1) the price of the stock is well below intrinsic value
    2)the number of shares outstanding actually decreases by the number of shares bought
    3)the operating metrics are intact ie (roic, roe, roa, return on retained earnings are high)
    4)there is a very degree of certainty that the company will be around for a long time (this is to ensure that i will actually enjoy the capital appreciation)
    5) i don't need the dividend right now
    Mar 8, 2011. 12:24 AM | 3 Likes Like |Link to Comment
  • A Look Into Special Situation Investing to Identify Potential Value Stocks [View article]
    Good article.
    Many people think of Buffett buying ko etc and getting rich. But they forgeg about his early dealings like M and A, arbritage etc.
    Mar 7, 2011. 10:57 AM | 1 Like Like |Link to Comment
  • Why I (Finally) Gave Up on Johnson & Johnson [View article]
    The comments here are quite civil. If you go to an apple thread it can get quite nasty
    Mar 6, 2011. 06:45 PM | 2 Likes Like |Link to Comment
  • The Tradeoff of Processed Foods: Less Nutritious, Better Investment [View article]
    Stephen
    This is a very good article filled with a lot of common sense.
    Mar 5, 2011. 12:45 PM | 3 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    On my last comment, I meant to say that Motley Fool and Morningstar are often wrong in their assessment of companies. If i followed all their advice, i would have missed out on some multibaggers.
    Mar 3, 2011. 04:56 PM | 4 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    Hi all

    Perhaps the payout of 39% is from earnings. What is more important is how much money they have to cover BOTH the dividend and capital expenditure. For the past quarter, SYY did not have enough money to cover neither the dividends nor the capital expenditure. If you continue with this trend, the dividend will be cut eventually. For what its worth, the payout ratio from CASH flow for 2010 was 65%. The payout ratio from cash flow for the past 3 months was 150%.
    With regard to Motley Fool and Morningstar, they are useful sometimes, but they are often right. There is alot of uncertainty surrounding SYY right now.
    Mar 3, 2011. 04:46 PM | 3 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    kewrc20
    Look at my post to Notbob. If you go to yahoo, look up SYY. There is a section on cash flow. Take the cash flow from operation. This is the amount of cash the company generated in a given period. This could be 1 quarter or 1 year. Subtract the capital expenditure. This is the "extra" money the company has left over before paying the dividend. If you subtract the dividend, you get free cash flow. Powerful companies should have close correlation between cash flow and earnings over time. If there is a discrepancy, you have to question the quality of earnings.
    Mar 3, 2011. 10:16 AM | 3 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    Notbob

    You're welcome.
    Mar 3, 2011. 10:12 AM | 2 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    Rich, Chowder and Notbob

    I've a delved a little deeper into SYY. Their cash flow 10 years ago was 955 million dollars. Their cash flow trailinging 12 months is 1022 million dollars. Not much change. Compare that to a KO, PEP or ABT or even WMT where they have increased their cash flows by 2-3 times. A highly desirable company is a company that possesses the ability to increase its earnings year after year. I'm not saying SYY is a bad company, because it has huge advantages over its competitiors. But the increase in market share etc translating to higher returns is still quite a bit away. If you are patient, you may eventually enjoy the returns. But i think there are other more appealing companies right now that can provide better returns (which translated for our dividend investors...better dividend growth). Not trying to be too critical here, but i do wish people here investing success, especially you Notbob.
    Mar 2, 2011. 07:19 PM | 5 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    Long term, SYY is a fine business because its moat is very wide. But it is in a business that is very capital intensive. They WILL gain market share from competitors because their industry is so fragmented. The deeper and longer the recession, the greater the market share will be for SYY. But their finances need to be monitored.
    Mar 2, 2011. 04:13 PM | 6 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    notbob

    go to yahoo and look under balance sheet. Look at the previous quarters. you will see that cash and equivalents went from 652 down to 209 in about 4 quarters. Go to cash flow statement and look at cash flow from operations. Subtract the capital expenditure to get free cash flow. This will tell you how much extra money the company has before paying the dividend. If you minus the dividend, there isnt much cash left. Look at the trade by quarter, annual and trailing 12 months
    Mar 2, 2011. 03:26 PM | 8 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    Sneaker and notbob

    I looked at SYY more closely. Sneaker is right. At first glance, SYY's balance sheet has been deteriorating over the past few quarters and the payout ratio is getting very high. I'm writing this notbob because i know you own syy and you own a concentrated portfolio. Look into it more. From a friend to a friend.
    Mar 2, 2011. 03:10 PM | 5 Likes Like |Link to Comment
  • 11 Dividend Stocks That Could Make You Wealthy [View article]
    D4Life

    Good article. I'll be a contrarian here. Except for the smaller companies, the other companies you mentioned will certaintly make you wealthy, but it will take quite of bit of time, especially if you are start off with a small amount. Some ways that the time can be shortened
    1)getting a high paying job
    2)engage in a business where you can use other people's money (best option)
    3)have a rich uncle
    4)hope for a very prolonged bear market where the price of stocks stay outrageously low and the yields stay high for an extended period of time
    5)find smaller companies that will grow up to be blue chip companies
    Mar 2, 2011. 12:57 PM | 5 Likes Like |Link to Comment
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