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Hammerhead411

Hammerhead411
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  • TravelCenters Of America Has Significant Room To Run [View article]
    Stange price action today. I couldn't help myself so I just bought some at $15.82. IMO, the sell/leaseback decision is what will push this stock into the $20's.
    Jun 3, 2015. 12:09 PM | Likes Like |Link to Comment
  • Saving For Kid's College: First Purchase Is Procter & Gamble [View article]
    I liked the article (it's fun) but agree with other's who commented suggesting a 529 is a much smarter tax-wise choice for college saving. Picking individual stocks comes with much more risk Vs 529 Index buying. A 529 (by design) automatically moves the assets into less risky funds as the student ages. Both 529's and Coverdell are tax-free if used for qualified educational expenses. My daughters (ages 17 and 12) both have 529's and Coverdell IRA's. We also link those accounts with Upromise (online shopping rewards) and Sage Scholars (provides a % per Q on PA's 529 plan balance - both kids have a $20K credit if they go to a participating school) which combined score several thousands of "free" 529 deposits per year. A downside is it is possible to over-save within a 529 plan which would result in costly penalties (15%, I think). If you get close to an adequate 529 balance then you might consider "parking" the add'l deposits into a Roth IRA (if not over income limit). The Roth IRA can be tapped tax-free for educational expenses and would reduce the 529 over-saving risk.

    I have built a similar investment structure beginning in the late 1980's and continued till about 2000 (when trading costs really dropped and DRIPS fell out of favor). I built a portfolio of no-fee DRIP plans which has basically become a paid-up life insurance and future annuity plan. My selection was to pick companies that would likely be around in 50+ years and offered a fee-friendly DRIP plan. The only downside was I got bought out from 2 of my bigger holdings (Bud and Heinz) which really left a dent in my annual dividends. I currently reinvest all the dividends but at some point will turn each into cash dividends for add'l retirement income. These plans are still available today if anyone has an inclination to do this (see computershare.com or shareowneronline.com for add'l plan details). It's much easier to get started today as most can be done 100% electronically. When I started, I had to go thru a specialty service to first acquirer a single share which was a requirement to enroll in the DRIP plans. That process took months to accomplish. Now most companies allow initial enrollment directly.

    Back to your plan...... I'd do a little advanced thinking and buy some Disney and BUD while they are still in diapers. I too have P&G in my DRIP plan too.
    Jun 2, 2015. 07:55 PM | 2 Likes Like |Link to Comment
  • Mizuho Makes Great Case For Rite Aid And Express Scripts Tie-Up [View article]
    Sorry I thought you were referring to the 7.5m long log found in the toiletry aisle!
    Jun 2, 2015. 07:06 PM | Likes Like |Link to Comment
  • Mizuho Makes Great Case For Rite Aid And Express Scripts Tie-Up [View article]
    "Who dumped and why?" The report says it was Ashley Timmons who "dumped" in a Massachusetts RAD store display while she was allegedly shoplifting. Not sure why she didn't just simply use the restroom.
    Jun 2, 2015. 03:29 PM | Likes Like |Link to Comment
  • Ford: Signs Demand Is Picking Up Significantly? [View article]
    FoMoCo showing signs of improvement but investors continue to stay away (even with a decent dividend). Not sure how/why/when the negative investor sentiment regarding Ford will change. The stock has been un-investable for 5+ years and looks to continue for the near-term.
    Jun 2, 2015. 03:23 PM | Likes Like |Link to Comment
  • Mizuho Makes Great Case For Rite Aid And Express Scripts Tie-Up [View article]
    Yes, this is an old idea being touted as something new. The idea goes back to immediately following the CVS / Caremark deal (many years ago). At that point, the potentially rumored suitor for RAD was Medco (which has since been taken out by Express Scripts). The merger makes a ton more sense than Walgreen's buying RAD (which I always felt has zero chance of happening).

    There's a lot of hopium regarding RAD's future here on this board. Personally, I am more concerned about the upcoming annual meeting than any takeover rumors. The pain from last year's mtg (and at least the following Q) hammered down this stock for 6+ months. My RAD hope here is this mtg will not trigger a sell-off and prolonged decline like last year. I'd really like to resume profit-taking around $9 to $10.
    Jun 1, 2015. 09:07 AM | Likes Like |Link to Comment
  • Ford: A Potential Investment Or A Walk Away Stock? [View article]
    The calls for $20+ have been made for 6+ years now. FoMoCo has and continues to be dead money. It's a sad stock indeed.
    May 31, 2015. 11:27 AM | 1 Like Like |Link to Comment
  • Mizuho Makes Great Case For Rite Aid And Express Scripts Tie-Up [View article]
    I'll gladly sell ESRX my RAD shares for $12!
    May 29, 2015. 10:40 PM | Likes Like |Link to Comment
  • Ford: A Potential Investment Or A Walk Away Stock? [View article]
    Vistor: I agree 100% with your predicted dangers with Lil Bill and Fieldsey running the show. I really hoped to be completely out before Fields took over but that didn't happen as the market reacted to Mullaly's anticipated exit. I doubt a year from now we'll be priced much differently than today. IMO, F is a dead-money play (has been for 5+ years) and will probably continue to be for the foreseeable future. I see no reason to buy this stock here and I'm only stuck in it like being in a broken down old Ford product. I've been cranking away for years and it just won't turnover!
    May 27, 2015. 08:04 PM | 1 Like Like |Link to Comment
  • Ford: A Potential Investment Or A Walk Away Stock? [View article]
    I saw the rotors...... both have a big rust gouge circling the rotor that cannot be turned out. They're shot. Just proof-positive that Ford was still using inferior components in 2010. And their misfortunate customers pay over & over in excessive maintenance costs. And I bet dollars to doughnuts that my vehicle will require some level of front-end work at July's state inspection. I've never owned a Ford product that got passed 40K w/o front end component replacement (and I don't live near dirt roads). Again, the Asian competition generally doesn't need front end work till past 100K (as it should be). My wife's got an '07 Honda and has only done oil and air filter changes and one set of tires! That vehicle was our first Asian product and has been a product experiment for me. I originally didn't believe all the claims from Honda and Toyota owners..... now I do.
    May 27, 2015. 03:07 PM | Likes Like |Link to Comment
  • Ford: A Potential Investment Or A Walk Away Stock? [View article]
    I am a long-time F shareholder and correctly predicted years ago that this is an un-investible stock which has essentially gone no where for the past 6 years. The stock can be traded but has little hope for the buy and holder. I profit-took a little the last time it hit $18.50 and thought it was heading for $20. Hindsight, I should've liquidated it all as the rebound has stalled for the past 5 years. At least we get a decent dividend to hold but this is still a painful stock to own. If you feel compelled to buy an auto manufacturer then I'd say buy TM. I'm still waiting for my $20 exit but am not sure this will happen in my lifetime.

    The September UAW contract will probably be a bit ugly as they want to end the two tier pay structure.

    Ford got themselves into trouble in the late 90's early 2000's making dating products using inferior components. I hoped they improved their components but fear they have not. Yesterday, I had my 2010 Edge (with 38K miles) in for an oil change and was told the front brakes are near replacement time. Not a biggy until they mentioned both rotors are shot and have to be replaced. Seriously, a set of rotors that don't even last the life of the original factory brake pads. This reminds me of my experience with a now-junked 1998 Mercury Villiger (bought new) and had to replace the rear brake drums at < 40K miles while the factory original pads were still OK. It's simply cheap inferior components that show up in expensive repairs. This does not happen with Toyota or Honda where you get at least one brake pad change before overhauling the brake system. The cheap components add an add'l $300+ for the customer whereas they should have at least one simple brake pad change. In the past, getting a Ford product thru the 40K to 80K miles range was is always a costly endeavor (whereas Asian products sail right thru inexpensively). I was hoping this was corrected but yesterday's news proves to me Ford is still at their old game (using cheap components). FTR, I only buy Ford products cause I get the A-plan purchase price which can be stacked with rebates.
    May 27, 2015. 09:18 AM | 2 Likes Like |Link to Comment
  • Transforming Rite Aid - Successful Turnaround Story Leads To 25% Upside [View article]
    Popeye: I voted for your proposal. I tip my hat for your efforts to improve this company. I've also enjoyed the latest discussions as they've been both educational and entertaining. Have fun at the annual mtg! Come on $9!!!!!!
    May 22, 2015. 04:15 PM | 1 Like Like |Link to Comment
  • TravelCenters Of America Has Significant Room To Run [View article]
    The EPS was a slight miss but the drop in revenue was significant. I believe this may be a temporary blip due to a short period of much cheaper fuel prices (have since gone on a steady rise up). I've traded TA over the past year and am currently 80% out (of my original position) but am very tempted to nibble back < $15. IMO, there is upside to this stock at this current price.
    May 15, 2015. 04:52 PM | 1 Like Like |Link to Comment
  • Long Case For Rite Aid: Transformation Into A Versatile Healthcare Provider [View article]
    Popeye: as for Plenti..... I am very curious what (if any) impact shows up in the May SSS #'s. If I am the typical valued RAD customer (having spent $1500+ annually on mostly front-end merchandise since Wellness+ began accumulating), then I would not be the slightest surprised if we see somewhat sluggish May 2015 front-end sales. I wouldn't expect any Plenti impact upon prescription sales. Just saying, the weekly sale circulars I received since the Plenti launch have not motivated me to shop once at RAD since the beginning of May (this is unusual for me). I think the sales marketing is a bit off-target and doesn't attract a shopper like myself (very sale ad motivated). Perhaps, they should've launched with some more attractive deals instead of coming out with a little whimper. I'm not against a new loyalty pgm but this one seems a bit poorly executed to me. I've never worked retail but I would think a new sales/marketing pgm should launch with some excitement and energy which Plenti has not. But I'll give it time. I really want to see $10 before all my hair turns gray!
    May 15, 2015. 02:57 PM | Likes Like |Link to Comment
  • Long Case For Rite Aid: Transformation Into A Versatile Healthcare Provider [View article]
    The RiteAid store photographed in the article I read appeared to be a newer store (exterior looked exactly like my local 5 or 6 YO store). Insurance won't cover 100% of the physical and inventory losses and probably none of the lost sales during the demo and rebuild period. There will be a negative impact from the damaged Baltimore stores this Q and longer for the rebuild. I just hope this doesn't come out as an excuse (like bad weather) at the June annual mtg.

    CVS has no choice but to rebuild at that same location whether they want to or not. Imagine how they'd look if they just demolished (or simply boarded up) the store shell and left?

    Yes, there is money to be made servicing dicey neighborhoods but it comes with there own unique risks and rewards. I've always commended RAD for operating in these locations.

    My Plenti reaction was just a personal observation realizing I haven't shopped at RAD since the pgm has initiated. That's unusual for me. I'm not fighting or boycotting it but I suspect the advertising may not be as effective as Rewards+ (i.e. paying $2.99 for a tube of toothpaste and get $2 Rewards+ rebate effectively paying $0.99 for the product). Very simple. Now I'll have to accumulate points for some unknown future reward. I expect my stores ads today so perhaps there is a Plenti deal that appeals to me for next week.
    May 14, 2015. 09:24 AM | Likes Like |Link to Comment
COMMENTS STATS
181 Comments
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