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hjtheuns

hjtheuns
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ABT, AFL, CAG, CAT, CBRL, CL, COP, CVS, CVX, DE, GE, GIS, HAS, HDV, IBM, KMB, KO, KRFT, LEG, MCD, MDT, MKC, MRK, NKE, PFE, PG, PM, PSX, RAH, ROST, SPY, SYY, T, TEI, TGH, TIP, VFC, WAG, WFC, WMT, XOM
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  • The Financial Crisis Is Over For Wells Fargo Dividend Investors [View article]
    We could argue for ever if the government, the banks or the individuals assuming the debt were more responsible for the crisis. The one thing we know for sure is that the banks were the one’s making the money which is why they are the ones paying the fines. Banks will continue to make money and provide an essential service to the economy. Banks have been and will be sound and profitable investments.
    Mar 29, 2014. 01:05 PM | 2 Likes Like |Link to Comment
  • The Financial Crisis Is Over For Wells Fargo Dividend Investors [View article]
    I agree that WFC is an attractive money center bank and I have been adding shares for the past six months. I also like BBT as a superior regional bank. Both of these banks are conservatively managed, have bright prospects and are reasonably priced. Financial stocks, and banks in particular, are seen as being good investments in a rising rate environment. For this to be true, the yield curve needs to steepen. This is not certain with the FOMC interfering with market forces.
    Mar 29, 2014. 12:38 PM | Likes Like |Link to Comment
  • Rising Risks For Dividend Growth Investors [View article]
    Thanks for your article. It makes some very interesting points and I agree with your assessment that many DGI stocks are disproportionately overvalued. While stocks can remain overvalued for a long time, even reaching outrageous valuations, a prudent investor should be cautious at this time. IMO investors that are not currently exercising caution and believe that their DGI stocks will rise indefinitely or will only experience a minor correction are being blinded by greed and are inexperienced. I feel empathy for them because selling an outstanding company is a difficult decision. Using the first stock highlighted in the article, VFC, as an example I certainly would not advise initiating or adding to a position. But what should an investor do if they are sitting on a 300% capital gain and have a YOC of over 7%? That is a difficult question to answer and is complicated by individual circumstances. If you bought VFC hoping for price appreciation, do not require the substantial income and have offsetting loses to allay the tax consequences then it would be hard to argue against taking profit. Conversely, the dividend income VFC is now providing and the increasing income it is very likely to provide in the future, would be next to impossible to replace if sold and capital gains taxes paid. Recommending a sound company trading at 10 times earnings is easy, but when the company trades at 20 times earnings there is no easy recommendation, other than not to buy.
    Mar 29, 2014. 12:07 PM | 5 Likes Like |Link to Comment
  • Lean In To Closing The Retirement Gender Gap [View article]
    I thought it was all the shoes my wife buys :-)
    Mar 6, 2014. 07:02 PM | 4 Likes Like |Link to Comment
  • General Mills Still Has A Lot To Offer [View article]
    If you look at a comparison chart of GIS to GSPC (S&P500) over a longer time frame, say 10 years, it will show significant outperformance by GIS (116.8% vs. 61.16%). The charts shown in the article don't include a bear market when GIS tends to shine. I thought the article was great, I just wanted to make this clarification point.
    Feb 27, 2014. 03:12 PM | 2 Likes Like |Link to Comment
  • Deere Chooses Not To Raise The Dividend; What's Next? [View article]
    A buyer of DE today is likely doing so for the attractive valuation not the present or near term income. DE is an excellent company which will produce significant income over their business cycle, but an investor should have a long-term view with some patience.
    Feb 26, 2014. 07:29 PM | 10 Likes Like |Link to Comment
  • Nike: A Great Stock But Slightly Overvalued [View article]
    I agree that NKE is somewhat over valued and is not at a great entry price. I would not be a seller of existing shares because I see the downside limited to about 10% and not worth the risk of being out of this great company and the significant dividend increases. This is a company you want to own for a very long time. I would be a buyer at $70 and a aggressive buyer if fortunate enough to see $65 again.
    Feb 23, 2014. 11:00 AM | Likes Like |Link to Comment
  • Ross Stores: A Great Growth Stock With At Least 20% Upside [View article]
    I'm also long ROST and added to my position last week. The dividend increase is late as they had been declaring the increase on the fourth Wednesday in January. I'm assuming that they will announce an increase along with earnings on the 27th of February. Can we dare hope for another 20%+ increase in the dividend?
    Feb 12, 2014. 08:47 PM | Likes Like |Link to Comment
  • General Electric: $30+ Price Target In Play... Here's Why [View article]
    Orders are placed through a contract that details the terms which include termination costs. The buyer can terminate but GE receives compensation, the terms of which are product and case specific. Historically, about half of the back orders are for jet engines which are typically very secure orders and are ordered years in advance.
    Feb 6, 2014. 08:40 AM | 7 Likes Like |Link to Comment
  • General Electric: $30+ Price Target In Play... Here's Why [View article]
    It was somewhat eerie for me to read your analysis because it so closely matches why I decided to add to my GE position yesterday at $24.36. The huge amount of back orders, the promising and growing industrial businesses, the spin-off of portions of the capital businesses and a 3.6% yield make GE an attractive long-term investment at this time.
    Feb 6, 2014. 06:41 AM | 5 Likes Like |Link to Comment
  • Procter & Gamble: A Dividend Growth Champ Now On Sale [View article]
    I agree that PG is a core DGI holding and is becoming attractively valued. I would also like to point out that the PG dividend increase is declared in mid April, not in the "next few weeks" as the article indicates.
    Feb 4, 2014. 07:20 PM | 2 Likes Like |Link to Comment
  • Stocks 2014: Investing For Growth - The Power And Protection Of High Compounding Earnings Growth - Part 2 [View article]
    Good day to be long SWKS. Earnings beat estimates and stock is up 9%+ after hours.
    Jan 16, 2014. 06:00 PM | Likes Like |Link to Comment
  • No Free Lunch For Minimum Wage And McDonald's [View article]
    We have different experiences and perspectives but share in our compassion for the poor. The townhouses I mentioned were modest but were new and were rented below market price through FHA. Perhaps the people they were rented to were not properly screened to assure they had adequate income for maintenance. I have always considered my ability to afford a home prior to buying but that may be an unrealistic expectation of the people being placed in taxpayer subsidized housing. It would seem that there isn't a viable option. Neither placing them in one room apartments in low income areas that they have great difficulty escaping from or placing them in new homes in a suburban area they can't maintain hasn't worked. The libertarian choice of cutting off all taxpayer aid and making them responsible for their station in life may be the answer. It seems harsh, but what else is there to try. Throwing more and more money at the issue hasn't worked.
    Jan 15, 2014. 08:31 PM | Likes Like |Link to Comment
  • No Free Lunch For Minimum Wage And McDonald's [View article]
    Ace - I agree that a minimum wage increase is largely inflationary and on net does little to improve the poor's standard of living. You made a very interesting point with regard to housing for the poor. As far as I know there are no construction companies interested in building rental properties targeted for the relatively poor without some form of government financial assistance. I would assume that they have concluded that the risks outweigh the rewards financially. The other side of this is that the poor are largely not caring for the available properties and the housing locations become associated with crime and violence. In my area the government built townhouses in a suburban area and within 10 years it basically became a ghetto overrun with crime. So there is certainly logical reasons for the NIMBY attitude. Inserting the poor housing project into the county has had a large negative financial impact. Perhaps it is a too simplistic premise, but when something is given it is often not respected.
    Jan 15, 2014. 01:08 PM | Likes Like |Link to Comment
  • No Free Lunch For Minimum Wage And McDonald's [View article]
    Ace - I too believe that MCD will adjust and continue to be profitable even with an additional mandated wage increase. MCD is currently adjusting to an hourly wage increase of about $2.25 through Obamacare. The social positives and negatives of these costs can be argued. We may never know because it is very difficult to isolate the effect of a particular action in a system as complex as MCD and the global economy. Particularly, actions as politically stimulated as these actions are. It is certain that wage increases will be passed along to consumers, over time, as required and that MCD will enact ways to reduce costs. Any company with reasonable management will do this effectively. Conversely, if a company needs to increase the skill quality of their employees to please their customers they will offer higher wages to attract these better employees. This is how markets are intended to work. So the question that must be asked is why believe that the government can arbitrarily mandate a wage more effectively than the market. Perhaps it is enlightening that 3 of 4 Americans believe that big government is the greatest threat to our future (according to a recent Gallop poll) and that the pendulum may be forced back toward a more moderate government. It should also be noted that not one historical example of centralized government control can be sited that lead to prosperity and upward mobility for the general population.
    Jan 15, 2014. 07:18 AM | Likes Like |Link to Comment
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