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  • NextEra Energy: A Dividend Stock Pick for the Next 5 Years [View article]
    Long story made short. I spend nearly my entire life in the most densely populated area of the United States: the Northeast corridor, which stretches from Boston to Washington DC. This area lends itself to mass transit better than any place in the USA. High speed rail is nothing new. In 1967, trains exceeded 170 MPH on that route. It did not stop the migration of people and businesses from center city locations to the suburbs. It was the life style American people wanted. It made much more economic sense for businesses to operate outside cities.

    Build it (high speed rail) and they will come? In most MSA's, the majority of people and businesses are in suburbs. This country will not raze its suburban houses and commercial facilities to the ground to relocate in center cites to support a white elephant transportation system.
    May 16 06:58 AM | 3 Likes Like |Link to Comment
  • 22 High Quality, Undervalued Dividend Stocks Worth Considering [View article]
    It was a hit to Lipitor sales when Zocor, which for many people is about as effective as Lipitor, went off patent. Lipitor sales went from almost $13 Billion to $10 Billion from competition from generic Simvastatin. However, the gross margins remained intact.

    Branded Lipitor will morph into a generic: Atorvastatin. It will become a commodity. Unit volume will drop from competition from generic manufacturers who compete for retailer and PBM business. Prices will drop from the pressure from retailers and PBM's. This double-levered affect is why I ball parked the drop in dollar volume from $10 Billion to $2 Billion with margins cut by 50%.

    PFE already sold off many non-core businesses that may have been organically developed or acquired with their acquisitions of Warner Lambert and Pharmacia. I don't think too many people feel they pulled the wool over JNJ's eyes when they sold them household names such as Listerine, Sudafed, Nicorette, Visine, Lubriderm, and others.

    PFE's track record with its acqisitions of Warner Lambert and Pharmacia is not stellar in terms of product innovation. Why would the Wyeth acquisition be any different?

    Oh, they're going to shrink to profitability as is suggested here.

    www.healthcare-digital...

    I hope the author has some of her facts straight. Contrary to what she states, Tylenol is made by JNJ. If they do all of these divestitures, they will be a one-trick pony. They will be swinging for the homeruns, while their record has more strikeouts than they care to remember. Torcetribib?

    www.pfizer.com/pfizer/...

    BTW, 16% of my portfolio is in healthcare. My principal holdings are ABT, JNJ, and NVS. These companies recognize the value of diversification. They are not one-trick ponies.
    May 15 04:46 PM | 1 Like Like |Link to Comment
  • NextEra Energy: A Dividend Stock Pick for the Next 5 Years [View article]
    Then why has no one chosen to invest in one in this country?

    Furthermore, do you really think that government subsidy is the way to make anything work? What makes high speed rail different from the steam ships as in the following?

    www.academia.org/bankr.../
    May 15 03:57 PM | 3 Likes Like |Link to Comment
  • 22 High Quality, Undervalued Dividend Stocks Worth Considering [View article]
    "Bristol-Meyers Squibb (BMY), Merck (MRK), and Pfizer (PFE) all trade for unbelievably low multiples due to fears over looming patent losses and questions about their pipelines. The low multiples and pessimism surrounding their stocks have begun to attract a bevy of value investors. Investors at today's prices should benefit from highly accretive share buybacks and spin-offs of non-core businesses, and the strong dividend yields will pay investors for their patience while waiting for Mr. Market to assign a more reasonable multiple to each of the businesses."

    Really? Would you care to put numbers to this postulate? With the Lipitor patent expiring in a matter of months, I calculate the following:

    Lipitor sales of $10 Billion at gross margins of 82% replaced by $2 Billion of generic atorvastatin at gross margins of 40% couple with higher distribution costs. That's a hit of over $7 Billion! Am I missing something?
    May 15 11:18 AM | 1 Like Like |Link to Comment
  • 15 Dividend Stocks Providing an Inflation Hedge [View article]
    toz, I'm only a boy of 64. It seems that there is so little information available on this Canadian company that I would either steer clear or invest a small amount and consider it a speculation.
    May 15 10:21 AM | 2 Likes Like |Link to Comment
  • NextEra Energy: A Dividend Stock Pick for the Next 5 Years [View article]
    Tortoise:

    A rail link between Detroit and Chicago may make sense. I ran some numbers on the $2.4 Billion Florida Governor Scott turned down.

    If you ran twelve round trip trains per day, at 100% capacity, every day, for thirty years, between Tampa and Orlando, it would require $61 per passenger to recoup the capital cost. That does not include debt service nor does it include operating costs, which would easily be greater than $61. The chances of running the line at 100% capacity 100% of the time are nil.

    To Governor Scott, as a businessman, this made zero sense since the State of Florida would have to absorb cost overruns from building a high-speed rail line from scratch thru swampland as well as operating costs in excess of ticket revenue.

    Since railroad unions contribute big bucks to Democratic Party campaign coffers, this train made sense only as a politically motivated wealth transfer.
    May 15 10:06 AM | 2 Likes Like |Link to Comment
  • Merck Is the Perfect Rx for This Volatile Market [View article]
    dannyray:

    First, it already happened with respect to NSAID's and the insurance companies were able to hide behind ERISA.

    www.law.uh.edu/healthl...

    Second, for many people, Simvastatin is about as effective as Lipitor. It is only at the highest dosages that Atorvastatin (Lipitor) is more effective than Simvastatin.

    www.mayoclinic.com/hea...
    May 14 01:02 PM | Likes Like |Link to Comment
  • 7 Top-Yielding Foreign Dividend Stocks [View article]
    There is foreign and there is foreign. I hold BCE, NVS, RDSB, TD, and TI for diversification away from US$'s and because they are quality companies in safe environments. I would steer clear of companies in not-so-safe environments. When I was in corporate life I tried to buy political risk insurance for my company's production in the Philippines and found it unavailable. The returns on stocks in that environment cannot be so superior to those in more stable environments to justify the additional risk.
    May 12 03:45 PM | Likes Like |Link to Comment
  • Intel: A Dividend Stock Pick for the Next Five Years [View article]
    The march of technological innovation should not be viewed as "faddish". In about 1969, an executive responsible for Marchant calculators dismissed electronic calculators as a "passing fad".
    May 12 06:50 AM | 1 Like Like |Link to Comment
  • Intel: A Dividend Stock Pick for the Next Five Years [View article]
    Is it possible that Intel's price is depressed because the AAPL products you mention are eating their lunch?
    May 11 08:09 AM | 1 Like Like |Link to Comment
  • Why Price Decline Often Equals Dividends Canceled [View article]
    I, for one, haven't owned a tech stock in this century. I was fortunate enough to have unloaded CSCO when it was selling at 200X earnings, as the largest capitalization in the market, and growth projections put it on a track to be one sixth of the country's GDP in five years. I was not so prescient (or lucky) with several other tech issues.

    Having said that, I wonder what your thoughts might be on Jim Cramer's observation that all the cheap tech stocks today are those having their lunch eaten by AAPL?
    May 10 04:41 PM | 2 Likes Like |Link to Comment
  • Why Price Decline Often Equals Dividends Canceled [View article]
    I am not invested in the insurance industry. However, HGIC shows a good yield (4.5%) and a track record of increasing its dividend by an average of 15.5% over the last five years. Now, the bad news. Its payout is over 100% of TTM earnings. I would be concerned about the sustainability of the dividend. If you are interested in insurance, look at CB or ACE. Lower yields, but without a reckless dividend policy.
    May 10 02:22 PM | 2 Likes Like |Link to Comment
  • Top 5 Drug Manufacturers Paying Substantial Dividends [View article]
    There is a fundamental difference between JNJ and PFE. JNJ is a diversified healthcare company with a portfolio of drug, devices and diagnostics, and consumer products. That gives it diversification and steady sources of funds. PFE chose to be a pure-play pharma and is tethered to blockbuster research. That is speculative. It will be "Katie bar the door" when their Lipitor patent expires this year.
    May 10 09:32 AM | 1 Like Like |Link to Comment
  • Top 5 Drug Manufacturers Paying Substantial Dividends [View article]
    sezgin, PFE may have been founded in 1849, but a more relevant date to investors is that their patent for the largest selling drug in history expires in 2011. Market capitalizations are, in theory, the present value of future earnings streams. How would the loss of the Lipitor impact future earnings.
    May 7 06:09 PM | 1 Like Like |Link to Comment
  • 8 Safe Dividend Stocks With Excellent Growth Rates [View article]
    strovej1:

    I guess I had some degree of prescience with what I bought in 2008. I bought a few issues few issues with my heart in my mouth. I did well with them, but no better with MLP's than with regular garden variety commons.
    May 6 01:54 PM | Likes Like |Link to Comment
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