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  • Is It Time To Buy Exxon And Other Big Oil? [View article]
    As usual the predictions of doom will prove extreme. You can forget about $30 or $40 a barrel oil and 90-cent gasoline &c. Most tight-oil operations won't be profitable if the oil price drops much below $60 a barrel. That's just a fact---plenty of info. on that is turned up by a Google search. Futhermore, fracked wells have a lifespan of about two years before production falls off---and the drop is much steeper than for a traditional well. So those are two reasons why the current boom is likely to prove short-lived. Another reason is the inevitable increase in demand as gasoline (and NG) prices sink. Auto dealers, for example, have already noticed rising sales of guzzlers. There's a ton of pent-up demand and frustration among consumers after years of high gas prices. People are ready to party. I think this is a great time for investors with a long time horizon to buy Big Oil shares, esp. companies with lots of refining operations (refining profits are boosted by lower oil prices). These diversified, integrated companies have the clout and breadth to survive just about anything. I doubt if they will even have to cut their dividends, although dividend increases may be affected for some time to come. In the long run oil prices will recover and oil shares too. Their business is the life blood of our civilization.
    Dec 7, 2014. 08:50 AM | 1 Like Like |Link to Comment
  • Verizon Looks Good, But Debt Is A Big, Long-Term Shadow [View article]
    I can't imagine a safer investment than Verizon. It even has a better reputation than AT&T, which is itself a safe investment. We are all thralls to cell phones and have to pay that bill each and every month. Verizon has a lock on us and it isn't going away. It is like a utility, and it's normal for utilities to carry lots of debt and get away with it. That said, I agree that over time the Vodafone purchase should be paid for.
    Nov 18, 2014. 09:15 AM | Likes Like |Link to Comment
  • Philip Morris Adds More Debt [View article]
    I agree with the author that it's time for PM to stop growing its debt and start shrinking it.
    Nov 17, 2014. 02:10 PM | Likes Like |Link to Comment
  • Sturm Ruger Has A Pessimistic Outlook For 2015, But Is Still A Buy [View article]
    I look mainly at the dividend and the dividend appears safe. 50% or so payout ratio, ZERO DEBT. Ruger has been around a long, long time and will continue to be. It operates in the world's greatest gun market. The brand alone is worth many dollars of the stock price. Yes there are ups and downs, inevitably. This is a down time but it will shift again.
    Nov 17, 2014. 02:00 PM | 1 Like Like |Link to Comment
  • Buy This High-Dividend Stock For Strong Revenue Growth And 2 Near-7% Yields [View article]
    It is significant, though, that HPT survived that enormous recession and has recovered most of its former stock price and most of its former yield. The company has been around a long time, is well managed, has terrific properties, and probably will continue to survive as long as people need hotels. This stock may appear more risky than it is.
    Nov 17, 2014. 01:54 PM | Likes Like |Link to Comment
  • Kimberly Clark: Ready For The Spin-Off After A Solid Quarter [View article]
    This is just an excellent long-term investment. For some time I thought it was overvalued, then like many other investors, I learned otherwise. The spinoff is extremely appealing and that's one reason the price has run up. It's usually good in to be "in" on spinoffs. A recent example: COP's spinoff of PSX.
    Paper pulp prices have been favorable for years and this helps KMB hugely. There is also no shortage of the stuff in sight, as anyone who has driven around the Southeast's rural areas knows. Loblolly farms everywhere. I own one myself.
    Another favorable factor to consider is that the aging population's increasing use of adult diapers will offset declines in the infant-diaper market.
    And technology will never be able to eliminate our need for toilet paper.
    Oct 26, 2014. 12:57 PM | 2 Likes Like |Link to Comment
  • Sturm Ruger Sales Normalizing? An Update On Adjusted NICS Data [View article]
    Ruger is an old, old company but it is arguably stronger than ever before in that long history. It has great financials, including ZERO DEBT. Its payout ratio is a very reasonable, sweet 43% or so. It has a strong brand name that is worth quite a few dollars of the stock price all by itself. It operates in a strong industry with high margins and eternal demand. I consider Ruger a value in the low 50s, not a value trap. There is room for the stock price (and earnings) to fall by half from here and the dividend to still be payable, which would put the yield at 10% plus---not gonna happen.
    Oct 23, 2014. 11:02 AM | Likes Like |Link to Comment
  • 8 Major Reasons Why The Current Low Oil Price Is Not Here To Stay [View article]
    I agree with the gist of this article. Oil is as important to the global economy as ever, despite media-driven mush about alternatives. Cheaper oil, even temporarily, is a severe blow to alternatives, so it isn't all bad news for oil producers. Ultimately, cheaper oil would be offset by higher consumption. I think almost any of the oil majors you'd care to name is a bargain right now. I've been buying shares in all of them. The safe dividend income alone is reason enough. As at least one other commentator noted, there's no need to take risks with marginal companies, unless you are desperate.
    Oct 22, 2014. 03:10 PM | 3 Likes Like |Link to Comment
  • Let Cummins Inc. Power Your Dividend Growth After Recent Pullback [View article]
    Do cheaper oil prices affect your view of natural gas powered engine manufacturers? The outlook for oil is that it will be cheaper for a long time.
    Oct 20, 2014. 02:44 PM | Likes Like |Link to Comment
  • 6 Stocks To Add Yield And Stability To Any Portfolio [View article]
    MO (Altria) has already been dealing with "Western" tobacco laws for decades, and the stock and the business are doing great!
    Oct 16, 2014. 11:50 AM | Likes Like |Link to Comment
  • 6 Stocks To Add Yield And Stability To Any Portfolio [View article]
    Middlesex could be bought out at any time, either by AWK or WTR. So it's a good one to own not only for the dividend. Yes it's interest-rate sensitive but so are all dividend-paying stocks. Can't get more basic than water. Right now the price is reasonable.
    Oct 16, 2014. 11:39 AM | Likes Like |Link to Comment
  • Kinder Morgan: Buy The Dip? [View article]
    If oil prices continue to decline, oil use will rise and that benefits oil movers like Kinder. The oldest mistake in this book is investors selling companies like KMI on news of oil declines.
    Oct 10, 2014. 09:34 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: Buy The Dip? [View article]
    Doubters of Richard Kinder have been proven wrong over and over and over again. And yet still there are doubters. It's as though they are blind to the fact, the proven track record, of his managerial genius.
    Oct 10, 2014. 09:32 AM | 2 Likes Like |Link to Comment
  • Get A 10% Raise Each Year With These 5 Stocks [View article]
    Especially as sea levels rise and storm surges worsen. It's easy to see NEE getting hammered financially by the kinds of superstorms the future is likely to bring. I'd prefer a utility in, say, Kansas.
    Oct 9, 2014. 04:01 PM | Likes Like |Link to Comment
  • Get A 10% Raise Each Year With These 5 Stocks [View article]
    Coastal Florida is dangerous territory.
    Oct 9, 2014. 10:02 AM | Likes Like |Link to Comment