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cpa28761

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  • Running on Coffee [View article]
    Bob, I find Major Dickason's blend superior to any offering of Starbuck's. I only had to get over that Peet's is headquartered in Berkeley.

    Long: MCD
    Aug 20, 2011. 08:16 AM | Likes Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    I understand your point, Norman, and it is well-taken. I own two tissue companies: KMB and PG. KMB yields more than 4%. However, over the long haul, I beleive the total return on PG will be greater. KMB is an OK company. I hold it because I may be wrong and it does contribute to my overall portfolio's immediate yield.
    Aug 19, 2011. 10:54 PM | 3 Likes Like |Link to Comment
  • 7 Large-Cap Global Pharma Dividend Stocks May Provide Appreciation and Income [View article]
    There is nothing we can do about the year 2000. Is GSK a good buy today?
    Aug 19, 2011. 02:49 PM | Likes Like |Link to Comment
  • 7 Large-Cap Global Pharma Dividend Stocks May Provide Appreciation and Income [View article]
    Norman, double check SNY. Its last dividend was US$1.76, which would put its yield at over 5%.
    Aug 19, 2011. 09:52 AM | 1 Like Like |Link to Comment
  • 7 Large-Cap Global Pharma Dividend Stocks May Provide Appreciation and Income [View article]
    ??????????????????????...

    First, we a talking about dividends, not interest.

    Second, if a ADR of a "foreign" company trades on an American exchange, the tax treatment of its dividend is the same as that of an American company's.

    Third, if the dividend is received in a taxable account, a credit can be claimed for taxes withheld. If the dividend is received in a retirement account, the taxes withheld are lost.
    Aug 19, 2011. 09:09 AM | 1 Like Like |Link to Comment
  • 5 Stocks to Buy Regardless of Economic Status: Part 2 [View article]
    >>>I had a 33 year career in pharma and many of those years I competed against PFE and so I think I am fairly well qualified to discuss both their + and - attributes.<<<

    Thanks for your response. Your background is the reason I sought your opinion. We agree on NVS, which, along with ABT and JNJ, is among my three largest health care holdings. We disagree on JNJ, which is my largest health care holding. FWIW, I like those three because of their diversification. I find that preferable to almost total dependence on R&D for blockbuster.

    I am aware that PFE has received European approval for crizotinib and bosutinib. I am also aware that PFE seeks to divest Wyeth baby formula business. Again, I see concentration on blockbuster drugs and that troubles me.

    Over the last five years, PFE's earnings growth has been negative while those of ABT, JNJ, and NVS have ranged from 6.5% to 10.2%. FWIT, BMY's earning growth has been 3.5%. According to figures obtained from Fidelity, PFE's projected earnings growth of 3.55% is lower than those of ABT, JNJ, and NVS.

    Certainly people of intelligence and good will can look at situations and arrive at different conclusions.
    Aug 19, 2011. 09:00 AM | 1 Like Like |Link to Comment
  • 5 Stocks to Buy Regardless of Economic Status: Part 2 [View article]
    My apologies, but I mean to say Billion (b) rather than million (m):

    retired, I regard you as someone who is knowledgeable about the industry beyond looking at numbers. My principal issue with PFE is the patent expiration of Lipitor, which is three months away. My down and dirty arithmetic says that Lipitor sales are $10 Billion at a gross margin of 80%, to yield $8 Billion. When the patent expires, this proprietary product becomes a commodity, sold to PBM's and dominant retailers who buy on price only. Competition from generic manufacturers will drive prices down and will cut into the number of pills sold by PFE's Greenwood generics division and will increase order fulfillment costs. If PFE sells half as many pills at half the margin (Mylan's GP is about 40%), that's $2.5 Billion of sales at 40%, to yield $1 Billion. I see it as highly unlikely that all the steps PFE has taken or is about to take can come close to replacing the $7 Billion of gross profits lost. Is there any factor that I have not considered?
    Aug 18, 2011. 01:41 PM | Likes Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    We can try to refine this issue. Are "dividend growth" stocks a class of investment separate and apart from "growth" stocks or "income" stocks? Is there a floor for dividend yield to be above for a stock to be called a "dividend" stock if the dividend yield is nominal (say, less than 2%)? My consumer staples basket (non-food) consists of PG, KMB, and CL. Into which category does each fall? PG is easy. A Philadelphia lawyer could argue about CL and KMB as to categorization.

    I try to look at each stock on both its merit and its place in my portfolio. Beyond that, we are getting into word games.
    Aug 18, 2011. 09:06 AM | 3 Likes Like |Link to Comment
  • 5 Stocks to Buy Regardless of Economic Status: Part 2 [View article]
    retired, I regard you as someone who is knowledgeable about the industry beyond looking at numbers. My principal issue with PFE is the patent expiration of Lipitor, which is three months away. My down and dirty arithmetic says that Lipitor sales are $10 million at a gross margin of 80%, to yield $8 million. When the patent expires, this proprietary product becomes a commodity, sold to PBM's and dominant retailers who buy on price only. Competition from generic manufacturers will drive prices down and will cut into the number of pills sold by PFE's Greenwood generics division and will increase order fulfillment costs. If PFE sells half as many pills at half the margin (Mylan's GP is about 40%), that's $2.5 million of sales at 40%, to yield $1 million. I see it as highly unlikely that all the steps PFE has taken or is about to take can come close to replacing the $7 million of gross profits lost. Is there any factor that I have not considered?
    Aug 18, 2011. 08:42 AM | 1 Like Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    >>>I consider MCD to be more of a growth stock than a dividend stock.<<<

    Norman, I thought I was agreeing with you.
    Aug 18, 2011. 08:20 AM | 4 Likes Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    Dividend growth stocks are "growth stocks". It takes a stream of rising earnings to drive rising dividends. PG and MCD are growth stocks, but are not "momentum plays". T and most utilities are "income stocks" as they serve as bond proxies in portfolios for their current income.
    Aug 18, 2011. 07:25 AM | 3 Likes Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    My sincere thanks for your service. Those who served in Vietnam deserved better treatment than they received at home.

    My family has "been there" at the call to arms. My father's brother died aboard a submarine in the Pacific Theater. My father's father lost a leg fighting the Germans in WW1.

    Vietnam was different. I had occasion to walk in New York City (my home town) while in uniform in 1970. An MP, in civilian attire, stopped me and advised that I was not safe on those streets. The night before, a mob attacked a group of soldiers, he said. It was a very minor incident, but it stays with me even today. Those who were in harm's way deserved better.
    Aug 17, 2011. 10:03 PM | 5 Likes Like |Link to Comment
  • 1 Dividend Stock for the Lull in the Price of Gold [View article]
    >>>even though I never served in WWII, Pearl Harbor Day holds a special place in my heart.<<<

    I have a different perspective. I have seen many war memorials including one in Mexico City dedicated to "Defenders of the Fatherland 1846-1848". While I am respectful, none moved me until I saw the Vietnam memorials in Washington, DC. I could not help but having a tear in my eye. This was MY GENERATION. BTW, I spent six years in the Army Reserve and never came anywhere near combat. If I had to do it all over again, notwithstanding my feelings when I saw the Vietnam memorials, I would do exactly what I did.
    Aug 17, 2011. 08:49 PM | 4 Likes Like |Link to Comment
  • A 5% Portfolio With Income Growth Opportunities, Reduced Risk to Dividend Cuts [View article]
    Perhaps, sometimes, we have to see beyond the numbers. There is no mathematical model that can make all decisions for us. Judgment must always come into play.
    Aug 17, 2011. 08:39 PM | 2 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    David, I'm glad to hear that the University of Rochester has a good medical school inasmuch as the doctor I use since moving to Florida last year went to school there.

    EK was into a number of businesses including acrylic fiber until they returned to their core competency. "Whodda thunk" someone would stick a lens in front of a computer and revolutionize photography overnite.

    XRX was the be-all and end-all of copiers. In the 1970's, I was a corporate accounting manager for a conglomerate that had a zinc oxide coated paper copier business that was a joke next to XRX. In my last 15 years in corporate America I saw the trend to email. I would not be surprised if a typical office makes less than 10% of the photocopies they made ten years ago. I don't know much about XRX's "documents" business other than what I see on TV. If XRX survives, they will not likely ever be a marquise name as they were.

    I agree with you on PBI. More importantly, the market agrees. Yields approaching 8% are risk premiums. What some investors don't realize is that when (not if) the dividend is cut or eliminated, the stock price will fall before they have the chance to redeploy their capital.
    Aug 17, 2011. 08:31 PM | 5 Likes Like |Link to Comment
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