Pres. Obama's re-election doesn't bode well for the odds of a tax holiday on overseas cash, notes Eric Savitz. That's problematic for large-cap tech names such as Apple (AAPL), Microsoft (MSFT), and Cisco (CSCO), which respectively have $83B, $54B, and $42.5B stashed overseas (per their most recent financials). As Savitz observes, there's a good chance some of that cash will be used on foreign acquisitions, especially in light of recent deals such as Microsoft/Skype and Cisco/NDS. [View news story]
I happen to think that moving quickly to develop a policy which allows reduced taxes on overseas profits/cash if the money is invested in proven job-creating businesses in the U.S. is a no-brainer. I also agree that the money has been taxed already where it was earned so this kind of solution would be a win/win. Then again, I am a proponent of legalizing marijuana and imposing a hefty tax on it (think cigarettes) as a way of opening a new revenue stream for the government and eliminating a profit source for organized crime. But then again, I am the first to admit I don't know much about nothin'!
Very good article. I hold HCN in my little IRA and would love to know your reasons for not having it on your list as you seem to know your stuff and I would value your opinion/analysis. Many thanks, P
Good analysis, but is the final conclusion that Pepsi is a "sell" or a "non buy"? Not quite sure as there are a few key positives and then some negatives in your summary.
Building A Portfolio, One Wish-List Stock At A Time [View article]
This was an easy to understand and easy to follow article. Many thanks. I suppose I also liked it as many of your picks and wishes reflect some of the stocks I am looking at carefully, so I feel both justified and secretly happy that if I make a mistake, there is someone else out there ready to suffer also! Good insightful summary.
Very interesting article. In the WSJ some days ago, Jack Hough wrote about "moat" stocks--those that are measured by return on invested capital (ROIC) and Eli Lilly was at the top of the pharma big boys with a 21.1% return on its invested capital.
This Company Could Pay An Enormous Dividend [View article]
When it comes to investing knowledge and insights, I position myself as strictly at the beginning of an apprenticeship. That said, in my innocence my comment on Cisco (whose shares I have owned since 1999) is whether current management has earned the confidence of the investing community on both strategic and value added parameters. I cannot help but think that in other companies, Chambers would be long gone as none of his "investments" seem to have done much for the overall value of the company. And, as others have commented, having so much of this wonderful pile of cash sitting overseas (where it is worth a lot less if it were to find itself back in the U.S. where the taxman waiteth) is a great talking and sell point, but doesn't seem to have much leverage beyond this. I will continue to avidly read this string as I find the debate and dialogue on Cisco enlightening. Many thanks.
Pres. Obama's re-election doesn't bode well for the odds of a tax holiday on overseas cash, notes Eric Savitz. That's problematic for large-cap tech names such as Apple (AAPL), Microsoft (MSFT), and Cisco (CSCO), which respectively have $83B, $54B, and $42.5B stashed overseas (per their most recent financials). As Savitz observes, there's a good chance some of that cash will be used on foreign acquisitions, especially in light of recent deals such as Microsoft/Skype and Cisco/NDS. [View news story]
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Profitability Analysis Of PepsiCo [View article]
Building A Portfolio, One Wish-List Stock At A Time [View article]
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This Company Could Pay An Enormous Dividend [View article]