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cpa28761

cpa28761
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  • Exhausted Unemployment Benefits Could Pull Economy Under [View article]
    Averages mean nothing. Problems cannot be attacked with averages; they must be solved at the micro level. Moon is right about American wages for factory workers being too high. In China, a university degree is the ticket to middle class living. In the USA, for too long, a tenth grade education and a union card put one in the middle class. The American manufacturing will not compete successfully in the world economy if semi-skilled assembly line workers are to be paid on a par with highly skilled workers. American manufacturing will not compete in the world economy until factories are run by industrial engineers and not union shop stewards. Witness the number of successful Asian car factories in the USA. They are in right-to-work states. American workers will not compete in the world economy as long as we have the dollar-for-dollar worst education system in the world. We must take away the perpetual, eternal get-out-of-jail-free cards carried by teachers: unions and tenure.
    Oct 25, 2011. 08:17 AM | Likes Like |Link to Comment
  • 6 Attractive Dividend Stocks And 1 Ugly Duckling [View article]
    UTX is among my top five holdings. Its strength is its participation in the world economy. Its dividend yield is a bit below where I'd like to be, but in a diversified portfolio, it is a high quality industrial company. It did not lose its focus the way GE did.
    Oct 24, 2011. 05:30 PM | 3 Likes Like |Link to Comment
  • Abbott Pharma Has A Right To Be Worried [View article]
    What are your alternatives? Would you be leaving a "secure" situation? Are there other opportunities for you to pursue?

    Remember that everything is good or bad only when compared to what else there is.
    Oct 24, 2011. 08:09 AM | Likes Like |Link to Comment
  • 6 Cheapest Drug Manufacturers With Perfect Dividends [View article]
    A screen is a starting point. The next step may be to evaluate business models. In the case of this industry, the impact of patent expirations must come into play. The impact may even be indirect. For example, what will be the impact of the Lipitor expiration on AZN's Crestor franchise? Are there drugs in the late-stage pipeline to offset the loss of proprietary drugs? Then again, these pure-play pharmaceuticals are priced at about 8X forward earnings. Is that cheap enough?
    Oct 24, 2011. 08:07 AM | Likes Like |Link to Comment
  • Is A Bird In Hand Better Than Dividends In The Bush? [View article]
    Bravo, Dave.

    I spent most of my life in and around New York City. I would call attention to the 1970's flick "Saturday Night Fever". It was the story of a hick from New York whose "world" encompassed about two square miles.

    Provincial people are found everywhere. Cosmopolitan people may be found anywhere.

    Sheldon
    Oct 23, 2011. 10:25 PM | 5 Likes Like |Link to Comment
  • Is A Bird In Hand Better Than Dividends In The Bush? [View article]
    When I stated:

    >>>Years ago, Milton Friedman told Phil Donahue that Donahue was being naive in assuming that political ambition was somehow nobler than political ambition.<<<

    I meant to say:

    Years ago, Milton Friedman told Phil Donahue that Donahue was being naive in assuming that political ambition was somehow nobler than ECONOMIC ambition.

    Sorry about that. My point is that for nearly three years we have had an administration that has done nothing but to pay its political debts to labor unions, civil service unions, "greens", and other factions that support the Democratic party and a hard left agenda. To Obama's credit, he stated that he would be a "transformational President", more like Reagan and NOT like Clinton. It was many people who did not listen to his message that put him in office.
    Sheldon
    Oct 22, 2011. 03:13 PM | Likes Like |Link to Comment
  • Is A Bird In Hand Better Than Dividends In The Bush? [View article]
    Dave, a wonderful piece of erudition and common sense. Perhaps, one day, I will even follow the path you and others have taken, and go by my name on SA.

    Years ago, Milton Friedman told Phil Donahue that Donahue was being naive in assuming that political ambition was somehow nobler than political ambition. Steve Jobs told Obama that this country will have to become more business friendly if plants were to be built here and not in China. But its political power first, and the economic growth that provides for everything from defense capability to social spending, second.

    Sheldon
    Oct 22, 2011. 09:56 AM | 4 Likes Like |Link to Comment
  • Is A Bird In Hand Better Than Dividends In The Bush? [View article]
    High yielding investmants are speculative like growth stocks, I agree. As a matter of fact, when I buy high-yield bonds, I look to research on the companies' stocks (i.e., TSO and JCP).

    I don't think I've seen anyone advocate making investments and NOT monitoring them. I just unloaded my position in ABT as the synergy in which I believed is being abandoned. I looked to the P/E's of PFE and MDT, both of which are lower than that of ABT.

    I would not invest in FTR or CTL as their managements are not running the businesses for the long-term. When new energy sources are discovered (cellulosic ethanol), it will be the existing energy companies that make the concepts commercially viable. Meanwhile, we've been hearing of solar power since the Frank Baxter TV show "Our Mr. Sun" of 1956.

    I really think that the majority of participants in SA can do better without the cost of "active management".
    Oct 22, 2011. 09:46 AM | 4 Likes Like |Link to Comment
  • Is A Bird In Hand Better Than Dividends In The Bush? [View article]
    James' comments prove one thing and one thing only: Diversification is the only free lunch in investing. A retirement-oriented investor should maintain a portfolio of income and income-growth investments. The truth is that only the earnings growth of the business can drive dividend growth.

    The piece does not give adequate attention to business models, IMHO. I remember some of the growth stocks of a decade ago, much as I wish I could forget them. CSCO, NOK, TLAB, and SLR, for example. Those guys grew, but were not sustainable. They crashed and burned when the novelty of their innovation was over. The kind of businesses in which dividend-growth investors invest are longer-term sustainable. Companies like PG, JNJ, KO, PEP, UTX, and MCD grow thru continuous and sustainable innovation. That is where I put the common stock portion of my retirement nest egg.

    I won't stake 100% of my assets on this strategy. I hold higher yielding stocks (telco's and utilities), bonds, preferred stocks, and MLP's for current income and for stability of principal. However, putting the risks associated with "growth" stocks on a par with the risks associated with "dividend-growth" stocks is just plain wrong.
    Oct 22, 2011. 08:41 AM | 2 Likes Like |Link to Comment
  • Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
    smurf, you're absolutely right. ABT currently sells at 10.6X next year's earnings. JNJ sells at 11.9X next year's earnings. PFE and MDT sell at 8.8X and 8.4X earnings, respectively. What is the rationale that splitting the company into two pieces will make it better than ABT is as one entity? The more I think about it, the better my $56.00 ex-dividend exit looks.
    Oct 21, 2011. 01:23 PM | 1 Like Like |Link to Comment
  • Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
    Sorry to differ guys, but I just liquidated my position in ABT. In premarket trading I was able to get $56.00.

    ABT was selling at an 11.3X multiple, which was far better than those of PFE, LLY, and MRK (8X-9X). Their pharmaceutical division will have to compete in that arena without the stable cash flow to fund research that devices and diagnostics, and consumer products provided. I don't know if they can keep up with those players. Maybe they can, but they sure won't defeat them by earning a higher multiple. I added a bit to my JNJ position as I believe they are the best positioned health care company given their diversity and size.

    I also added to my postions in PG, UTX, HON, and three utilities to lighten up on health care.
    Oct 19, 2011. 01:37 PM | Likes Like |Link to Comment
  • Agony From Lipitor's Expiration Won't Be Exclusive To Pfizer [View article]
    Lipitor is more effective than Zocor.

    http://bit.ly/q3YOKP
    Oct 19, 2011. 07:20 AM | Likes Like |Link to Comment
  • 4 Picks For Income Investors [View article]
    If they use principal liquidations to create yield, YES!!!
    Oct 19, 2011. 07:13 AM | Likes Like |Link to Comment
  • 6 Stocks For Growth And Income In Retirement Accounts [View article]
    I canceled my subscription to Morningstar several years ago. I found their concept of value investing to be biased toward companies with lower valuations without adequate regard to the valid reasons why valuations were cheap.
    Oct 18, 2011. 09:10 PM | 1 Like Like |Link to Comment
  • 19 High-Yield ADRs With Strong Growth And Low P/Es [View article]
    And, if the USD falls vs. the Euro, the yield to the US investor will be greater. I think the concept is called "diversification".

    However, many of these companies are global in scope. Some of the pharmaceuticals may make as much of their profits in the USA as they do in the Euro Zone. Therefore, currency risk is a wash to the US investor.
    Oct 18, 2011. 09:06 PM | Likes Like |Link to Comment
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