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cpa28761

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  • 5 Promising Dividend Stocks Trading Below Book Value [View article]
    optifan, I agree with your analysis. In the 1970's, I worked for a competitor of XRX. In those days, people were in awe of XRX's excellence. People were also in awe of EK.

    The photocopier business is in decline. XRX is doing the right thing to diversify out of it. However, the competitive environment is new to them and fraught with danger.
    Apr 29 08:15 AM | Likes Like |Link to Comment
  • 5 Promising Dividend Stocks Trading Below Book Value [View article]
    >>>Stocks that trade at market prices per share lower than their book values per share can theoretically be purchased at market values below the companies' liquidation values, signifying a discount to companies' net worth.<<<

    Unless certain postulates have changed since I retired in 2010, this statement is INCORRECT. Carrying values on a corporation's balance sheet are based on "going concern" values and NOT "liquidation" values. If a company or even a group of its assets must be liquidated, there will generally be a loss reflected in a write-down or an asset impairment charge (even in a going concern).

    If you seek an exception, look to PG. They discontinued Folger's coffee and Pringles, but sold them to SJM and K, respectively, at profits.

    I have my doubts that XRX's "revenues are annuity-like". They are driven by the numbers of copiers in service and photocopies made. Both of which are in decline due to electronic communication.
    Apr 28 08:20 PM | Likes Like |Link to Comment
  • Verizon Finally Ready To Bid For Vodafone's Stake In Verizon Wireless? [View article]
    Why would anyone want to takeover VZ with all of its union problems and legacy costs? VOD is in the catbird seat right now. If VZ can borrow enough to maker it worth VOD's while, that's another story.
    Apr 26 09:14 AM | Likes Like |Link to Comment
  • General Mills: An International Heavyweight Champion [View article]
    >>>The long term debt is a slightly higher than normally-desired 42% of capitalization, but it's much lower than it was a decade ago and is obviously not a problem. It's Return on Equity has been very healthy and between 24.5% and 30.7% over the past few years and is higher than earlier in the decade - indicating General Mills knows how to put new earnings to work!<<<

    All this proves is that no single measurement can be used to evaluate an investment. In general, with a profitable company, the more leverage, the higher the ROE. The more leverage, the greater the risk if the company is not profitable. It's a two-edged sword.
    Apr 26 08:48 AM | Likes Like |Link to Comment
  • General Mills: An International Heavyweight Champion [View article]
    >>>Do you know if instantly reinvested dividend distributions through the DRIP program are taxed as realized gains?<<<

    http://1.usa.gov/Y94jeG

    "The corporation in which you own stock may have a dividend reinvestment plan. This plan lets you choose to use your dividends to buy (through an agent) more shares of stock in the corporation instead of receiving the dividends in cash. Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. If you use your dividends to buy more stock at a price equal to its fair market value, you still must report the dividends as income."
    Apr 26 08:44 AM | Likes Like |Link to Comment
  • A Flight To Safety Or Crash And Burn? [View article]
    Wayne, using your numbers, a worst case scenario would cause your hypothetical retiree to run out of money in the 20th year. However, the worst case is that he collects zero Social Security and his 5%-yielding stocks grow in neither appreciation or dividend growth.

    Fidelity, with whom I have most of my assets, provides a Monte Carlo analysis tool that I found very useful. I am not going to try to reinvent it.
    Apr 25 04:33 PM | Likes Like |Link to Comment
  • Procter And Gamble Fall Rewards Long-Term Investors [View article]
    I added to my PG position as well.
    Apr 25 12:57 PM | Likes Like |Link to Comment
  • McDonald's Stock: Buy Or Sell? [View article]
    It may be a regional thing here in Florida.
    Apr 24 08:37 AM | Likes Like |Link to Comment
  • McDonald's Stock: Buy Or Sell? [View article]
    hajimow:

    This week I went to Bobby's Burger Palace and had a really good burger. I also remember great burgers at BLT Burger and Fuddrucker's. I will not even try Five Guys as I have heard their burgers are too greasy. That is my gastronomic take on burgers.

    MCD is an investment. I drink their coffee. I will eat oatmeal and chicken sandwhiches there, but I will not eat burgers. Whether I willl buy or hold their stock depends on investment alternatives.

    FWIW, not that you asked, but I will not hold a tobacco stock.
    Apr 22 10:16 PM | Likes Like |Link to Comment
  • A Flight To Safety Or Crash And Burn? [View article]
    Wayne:

    July will mark my third year as retired folk. I'm not a southerner, but I spent enough time in the Carolinas and Georgia to get the flavor.

    My problem with 5 years cash is that most folks would be living off it rather than the interest or dividends it could be earning if invested.

    Most of my investments are with Fidelity. They, thru a company called "Yodlee," provide a service by which all of my investment accounts, bank accounts, and credit cards are aggregated. I can determine my total financial position on any given day. I am also able to track my income and expenses for the current year and prior year. This has given me a perspective on what my actual life style costs me.

    Fidelity has a "retirement income planner" that uses Monte Carlo simulations using retirement assets and a figure I supply (based on the above) for monthly living expenses. It gives me a comfort level in that I will not run out of money given that I spend considerably less than the amount probably available thru the analysis.

    I supplement the Fidelity analysis with my own spreadsheet wherein I compare the sum of the income from our brokerage account, our social security, and withdrawals from one retirement account. The excess of that income alone over expenses (without touching other retirement accounts) corroborates the Fidelity retirement income planner and further assures me that we won't run out of money.
    Apr 22 09:19 PM | Likes Like |Link to Comment
  • A Flight To Safety Or Crash And Burn? [View article]
    Gratian:

    About half of my portfolio is in bonds. I buy them thru Fidelity. I am able to set search parameters and create my own "recommended" lists in real time. I can determine what each issue has traded for and make my own bids. More often that not, my bids are rejected or ignored. However, the prices I pay are always less than most others with the obvious difference being the commissions paid to "full service" brokers.
    Apr 22 08:21 PM | Likes Like |Link to Comment
  • Dividends: Should I Reinvest Or Not? [View article]
    Chowder, I grew up a Brooklyn Dodger fan and remember a guy named Don Newcombe. In the year the Dodgers won their first world series (1955), Don Newcombe was 20 & 5, and hit 7 home runs, 9 doubles, and batted .359.
    Apr 22 02:23 PM | Likes Like |Link to Comment
  • 3 Dividend Stocks With Rapidly Increasing Debt [View article]
    gdimo, thanks for your comments and participation. I don't agree, of course. Beyond getting out of foods, PG divested Folger's as they saw tastes gravitating to Arabica coffee, which Folger's is not. PG was embarrassed by taste tests. In the end, time will tell.

    I look forward to your continued participation on SA.
    Apr 22 02:03 PM | Likes Like |Link to Comment
  • The Value Created At B&G Foods [View article]
    Sorry to be the party pooper, but I prefer companies that can develop and sustain their own brands. I invest in the kind of companies that own the franchise. To companies like BGS, the franchise is the space on retailers' shelves. The opposite was the showdown between KO and COST where COST blinked. Legacy brands can be milked for only so long. Then companies like BGS must take on more debt to buy more declining brands.

    Long: CAG, GIS, KO, PEP
    Apr 22 01:56 PM | Likes Like |Link to Comment
  • A Flight To Safety Or Crash And Burn? [View article]
    A COFINA will yield over 4% as in CUSIP 74529JLN3. However, it is NOT AA, but A3/A+. I only go by underlying ratings. However, in the case of Puerto Rico, I would not make a big bet regardless of what the rating agencies say.
    Apr 22 07:49 AM | Likes Like |Link to Comment
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