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  • Wal-Mart: 2 Strikes... And You're Out [View article]

    You do realize that Walmart's an online retailer that is growing its online sales at 20%+ per annum, don't you?
    Feb 26, 2015. 11:51 AM | 1 Like Like |Link to Comment
  • Wal-Mart: 2 Strikes... And You're Out [View article]
    Yes. I misread your thoughts. Sorry.

    Still wanted to say though that if you think WMT will have flat earnings going forward, don't invest in them.

    If you think WMT can grow earnings however, buy their stock.
    Feb 26, 2015. 11:50 AM | Likes Like |Link to Comment
  • Wal-Mart: 2 Strikes... And You're Out [View article]

    No one will take you seriously with comments such as 'Walmart is tomorrow's Radio Shack'.
    Feb 26, 2015. 11:47 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investors: I Have A Few Questions [View article]
    Let's say Bob had 4 investments in the retail sector. As an example, let's say he was invested in:


    And let's say he held these positions for 30 years and collected rising dividends from each.

    Well, each company will rise and fall as each company will have successful periods and unsuccessful periods over this 30 year period. Some years, WMT and COST will be doing well, and some years DG and TGT might do well.

    So, to own so many companies is to basically index your investments and capture both the good and bad of a large swath of companies.

    Bob would likely achieve the same results by just investing in his 2 favourite picks across 10 major industry segments.
    Feb 25, 2015. 08:23 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investors: I Have A Few Questions [View article]
    I know it is time consuming, but just look at earnings histories and match them up against dividend payout histories. Put the numbers into an excel spreadsheet.
    Feb 25, 2015. 08:05 PM | 2 Likes Like |Link to Comment
  • Wal-Mart: 2 Strikes... And You're Out [View article]

    I own Wamlart and I think they can rebound their EPS growth.

    But if you don't like them at $84, you shouldn't like them at $70. If they start growing earnings again, they will move higher, whether they start from a share price of $60, $65, $70 or $80.

    Stocks move based upon earnings growth and future expectations. They don't really move based upon current price and current P/E ratios. I think it was Bill Miller who stated that P/E (using TTM) is looking back instead of looking forward.
    Feb 25, 2015. 07:46 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: I Have A Few Questions [View article]
    My first thought:

    50 companies to hold is too many. I currently own 5 and will be selling AFL soon.


    I think holding 8 companies is the ideal number. 50 is too hard to follow, imho.
    Feb 25, 2015. 09:35 AM | 2 Likes Like |Link to Comment
  • Target beats by $0.04, beats on revenue [View news story]
    Remember, Target lost $5 billion in Canada within 2 years, while WMT has flourished within Canada. Target isn't a well run company, despite this earnings report.

    Not hating. Just saying.
    Feb 25, 2015. 09:30 AM | Likes Like |Link to Comment
  • AmEx raising interest rates for first time in five years [View news story]
    As money gets cheaper and cheaper with Fed policies, companies such as Amex raise rates and make even more money.

    Lol - you can't make this sh*t up.

    Banks are now charging customers for deposits because other sources of money are so cheap, they don't even want any savers' deposits.

    Good enconomy, eh?
    Feb 25, 2015. 09:28 AM | 4 Likes Like |Link to Comment
  • GoDaddy files new S-1, provides ticker [View news story]
    $4.5 billion valuation for a company:

    a) Growing its customer base at only 9%
    b) Growing its revenue at only 23%
    c) losing money at 10% of revenue

    No thanks. I'll pass.
    Feb 24, 2015. 08:46 PM | 3 Likes Like |Link to Comment
  • Wal-Mart: 2 Strikes... And You're Out [View article]
    I am still holding Walmart for many reasons.

    Walmart has stated a concrete strategy of rapidly expanding their small format stores into urban centers. I believe this strategy will signifigantly add to their EPS within the next 3 - 7 years because the opportunity for growth with such a strategy is great. Walmart could easily add 3,000 small format stores within a relatively small timeframe.

    Secondly, Walmart has excelled in Canada, while Target failed miserably. This says something as to Walmart's strength going forward. Canada is a very similar market to that of the U.S., just with less competition for entering retailers. Target should have succeeded, but they didn't. They are a poorly run organization.

    Thirdly, Wamlart employs many marginal workers that would not be hired elsewhere. Personally, I am happy that Walmart gives these workers economic opportunity. As a result - on a personal level - I choose to invest in Walmart for this reason.

    Walmart's biggest issue is that they have to get better product selection within their categories. Better, more demand items will add to EPS more than anything else. Opportunity cost hurts all businesses' EPS growth, and with Walmart, it is killing them. Wamlart has the customers, they have the facilities, they just need to get better products in their stores - higher demand products that sell faster and give Walmart more profit. Dollar stores are excellent at doing this.

    Of note, if people still think Target is a company worth investing in - even after watching their horrible, juvenille execution throughout Canada - then those Target supporters have to give Walmart props for making a success of it within the same Canadian market.

    When I visited Target stores in the U.S., I was never impressed. After seeing them open and operate in Canada, I will never invest in Target - ever. I have seen 'mom and pop' shops with better operations than what Target implemented in Canada. It is unbelievable that they lost $5 Billion within less than 2 years.

    The people running Target Canada obviously had no idea what they were doing. Even someone who had run a personal retail store on their own, and moreso, even someone who had an ounce of common sense would have understood that a strategy of high prices and out-of-stock shelves would cause the retailer to lose money.

    The ridiculous thing is that suppliers are always willing to send more product to a retailer with Target's size and financial standing. It was Target's quiet strategy to keep shelves less than full. Imagine that - paying for facilities, employees and time, but not giving customers in your store a chance to buy more product. Who would have guessed that such a quiet strategy would fail? Answer: Everyone outside of Target would have guessed.

    I am not joking when I state:

    I would invest in any retailer before I would invest in Target. To those that love Target, you have to love Walmart just as much, for Walmart is head and shoulders above Target in so many visible ways.

    Was anyone aware that within Target Canada's automotive section - throughout their Canadian stores - they didn't sell even one jug of motor oil? All they offered were 1 quart, individual bottles. So, any guy that wanted to change his oil on the weekend didn't have the option of buying the value jug of 5 quarts of oil. Also, no oil filters, no air filters - nothing. And that's in their automotive section!

    Think about that. And invest in Walmart instead.
    Feb 24, 2015. 04:18 PM | 4 Likes Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    Everything is better than investing in a phramaceutical company, JNJ aside. The only investment I ever lost money in was when I decided to bet on pharmaceuticals.

    Airlines are doing well these days. People should look at them for the future.
    Feb 21, 2015. 05:36 PM | Likes Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    Mr. Nadel,

    Good article. Thanks.

    I own Walmart - bought at $52.33 - and was wondering the same as you, that being whether this latest joke of a dividend hike is reason enough to sell the stock. I was impressed with the fact that you realize the government's stated rate of inflation is a huge lie. Inflation is averaging about 4 - 5% per year, not the 1 - 2% that the government reports to the public. With inflation actually at 4 - 5% and Walmart's dividend increase at only 2%, I am losing to inflation.

    I bought WJA, Westjet Airlines today, at $30.89. You should look at it for dividend growth.

    WJA is the biggest airline in Canada now, surpassing Air Canada in market cap. Westjet went public in 1999, started paying dividends in 2010 at $0.05 per share, and today, in 2015, they are paying $0.14 cents per share as of March. Their expected payout ratio for the March dividend will be only 22%. So, in less than 5 years, they have almost tripled their dividend and they are still only at 0.22 payout ratio. Plus, they have $1.4 billion of cash. For a company worth $4 Billion, 35% cash on the balance sheet is great. If you remove cash, they are trading at under 10 times TTM earnings. They are growing revenues at about 10% per year and earnings at over 20% per year.

    Investors who decide to invest in the Canadian dollar can buy alot of dollars at a cheap price now and if oil rebounds, the Canadian dollar could go higher and so would provide an extra return. As the Canadian dollar might appreciate and as WJA's dividend continues to increase, this investment could give you alot of U.S. dollars when you receive the dividend.
    Feb 20, 2015. 08:49 PM | 2 Likes Like |Link to Comment
  • Wal-Mart loses a sell-side fan [View news story]
    Just read the CNBC piece on Cramer's assertion regarding Walmart employees.

    But, I disagree that Walmart's problem resides with their employees. If customer service determined a retailers success, then Home Depot would be losing money every year.

    Walmart's problem is in their product selection assortment. Their buyers - where ever they get their buying directive and instructions from - are not selecting the best, most demanded, fastest moving products to put onto store shelves. Pick better products, sell them at the cheapest price and your customers will buy more.

    Walmart only controls something like 3% of the money spent within the U.S. economy. I don't know the exact number, but it is close to this amount. Anyways, that other 97% is what Walmart should focus on, not whether their employee feels motivated or not.
    Feb 20, 2015. 09:31 AM | 1 Like Like |Link to Comment
  • Wal-Mart declares $1.96 dividend [View news story]
    Terrible dividend increase.
    Feb 19, 2015. 09:06 AM | 15 Likes Like |Link to Comment