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  • Intel: Dominant And Undervalued [View article]
    ta152h: Holy inferior processor, Batman! I'm going out on a limb here but I'm guessing you're not exactly a big fan of Intel. Just out of curiosity, is there anything you like about Intel? Also, how would you explain their remarkable success over the years?

    I have to laugh: I've read many, many negative comments regarding Intel following SA articles (and quite a few negative SA articles) over the past year or so since I commenced my subscription to SA. And yet, Intel plods along like creeping lava from a volcano consuming everything in its path (well, 80% of everything, at least).

    I will say you are certainly technically knowledgeable about Intel's and Intel's competitors' products, far more so than I. Although I don't necessarily agree with your overall extreme negativism regarding Intel, I did enjoy reading your comments.
    Dec 25, 2014. 08:45 PM | Likes Like |Link to Comment
  • Key Energy -15%, worst among energy stocks downgraded by Global Hunter [View news story]
    GonzoOne: I've noticed that analysts are about as useful as elevator operators. What would have been impressive is if they have foreseen the coming oil glut and the subsequent drop in oil prices. Their grading is almost always a case of closing the stable door after the horse has bolted.
    Dec 23, 2014. 06:46 PM | 19 Likes Like |Link to Comment
  • Guggenheim throws in the towel on Seadrill, Transocean, Diamond Offshore [View news story]
    Don't worry, folks. As soon as oil returns to $106/bbl and the prices of these stocks return to 52-week highs, the analysts will upgrade them.

    And in other news: Analysts downgraded the Buggy Whip Corporation today; apparently analysts are now convinced the automobile is here to stay!
    Dec 1, 2014. 04:20 PM | 17 Likes Like |Link to Comment
  • Microsoft Under New Assault For Tax Evasion [View article]
    Raster: Using "shell games," as you put it, to avoid tax in its own home state is not a case of tax evasion any more than you are a tax evader by deducting your home mortgage interest and real estate taxes on your tax return because they amount to more than the standard deduction.

    Microsoft is simply using existing tax law to minimize taxes--a strategic move all shareholders should applaud. These complicated procedures would not be necessary if the tax code were simplified--but, alas, the corrupt politicians in Washington will never simplify the tax code as the bribery professionals, er, I mean lobbyists, prove to be far too profitable.
    Nov 27, 2014. 02:44 PM | 5 Likes Like |Link to Comment
  • Update: Sysco Announces Tiny Increase In Dividend [View article]
    Winning Strategies: You state that SYY's current free cash flows are not covering its dividend payments. According to TD Ameritrade's website (and confirmed by SYY's annual reports), free cash flow did come up $290M short in fiscal year 2010, $141M short in 2011, and $4M short in 2012 after paying the cash dividends. However, in 2013 FCF was $1,000M ($1,512M cash from Op less $512M CapEx)--more than enough to cover the $648M in cash dividends paid; in 2014, FCF was $970M ($1,493M cash from Op less $523M CapEx)--again, more than enough to cover the $667M in cash dividends. Admittedly, operating income and net income did decline each year from 2010 through 2014.

    If I'm wrong, could please indicate where. Otherwise, does this correction to your statement regarding free cash flow not covering the cash dividends change your opinion in any way?

    (Currently holding SYY.)
    Nov 20, 2014. 08:20 PM | 3 Likes Like |Link to Comment
  • Berkshire ups GM stake, exits Deere, buys into Express Scripts [View news story]
    funfun: I will give you a "Like" but I won't click on "Like" thereby, in effect, allowing lemm to take back his "Like."

    The bailout of GM was nothing more than a gift to the unions, ultimately costing the taxpayer somewhere in the region of $8 billion. None of the inherent problems at GM were corrected through the bailout and these will eventually come back to haunt the company's profitability. Look for a future GM bankruptcy (or probably another taxpayer sponsored bailout--depending on who's in office).

    Filing for bankruptcy protection would not have caused GM to go out of business, as Obama has implied (is it actually possible for that man to open his mouth without telling a lie? But I digress.) I worked for United Airlines and UA filed for bankruptcy protection--yet we never missed a flight--as have thousands of companies without going out of business. Allowing GM to file for bankruptcy protection would have forced GM to resolve many of their inherent problems and GM would have emerged a stronger company because of it.

    As for Warren Buffet: He might be the world's greatest investor but, let's face it, a bit of a crony capitalist. Could his investment in GM be in exchange for a veto from Obama for the Keystone pipeline (think BNSF)? No proof; just a bit cynical, that's all.

    By the way, I hold BRK.B shares--if you can't fight 'em, join 'em.
    Nov 14, 2014. 11:19 PM | 4 Likes Like |Link to Comment
  • Almaden Minerals: Making Sense Of The Spinout [View article]
    Ben Kramer-Miller: I found AAU in an investment letter published by the investment research firm in which I have subscriptions to several investment letters. The particular letter in which I found this little gem has a subscription price of $5,000 per year (I didn't pay the $5,000--I discovered a glitch in the system, unbeknownst to them and which I'm sure will be temporary, that allows me to view all but the current issue). What disappointed me about this particular recommendation (and especially considering the price of the newsletter) was the virtual omission of any risk.

    Thank you for your relatively easy to understand explanation of the SpinCo spin-off, your balanced risk versus reward analysis, and your thoughts regarding when, depending upon the reader's motivations, to buy shares. It is greatly appreciated. Good job.
    Nov 12, 2014. 12:23 PM | Likes Like |Link to Comment
  • Intel downgraded at Morgan Stanley; now sharply lower premarket [View news story]
    Archman Investor: I've been following your comments regarding stock splits and buybacks. I'm not sure you quite understand the reasoning behind stock splits and buybacks, each of which are used for different purposes. My apologies if I've misjudged your understanding, in which case perhaps the following will be helpful to the novice investor (and even some not-so-novice investors).

    A stock split is generally used to keep the price of the stock within a certain range in order to appeal to the small investor (as opposed to the institutional investor). TD Ameritrade records seven 2:1 and one 1.5:1 stock splits since 1980 for an effective split ratio of 192:1. Based on today's closing price of $31.28 per share, without these splits the stock would (theoretically) be trading at $6,006 per share ($31.28 * 192)--well beyond the price range of the average investor. (For an extreme example of a stock that has never split, Berkshire Hathaway (the class "A" shares) closed today at $203,800 per share.)

    Stock buybacks, on the other hand, have the effect of returning cash to investors in that the stockholder's percentage of ownership increases. For example, if a company has 1,000 shares outstanding and a stockholder owns 100 shares, the stockholder owns 10% of the common shares outstanding. If the company buys back 100 shares, shares outstanding are reduced to 900 and the investor's ownership in the company rises to 11.1% (100 / 900).

    You are correct in stating that EPS increase with stock buybacks as the earnings are spread between fewer shares. However, with stock buybacks there is the advantage that dividends are not paid on the shares that have been bought back. In the example above, if the dividend was $1.00 per share before the buyback, the dividend could be raised to $1.11 after the buyback without any increase in total dividend distributions (1,000 * $1.00 = $1,000 vs 900 * $1.11 = $999.00); an 11% increase in per share dividend payments.

    Personally, I have mixed emotions regarding share buybacks--depending on the shareholder friendliness of the management. I sometimes fear that management that reduces the share count through buybacks will then re-issues shares for the purpose of overly generous Board and management compensation packages. On the other hand, increasing accumulations of idle cash tend to burn a hole in the pockets of management which sometimes result in over-priced acquisitions or acquisitions that do not fit the company's business model. In either of these situations I would be in favor of a special dividend payment.

    Regarding the merits of INTC as a trading stock versus an investment, I'll let you debate that with the other commenters. However, I will say that a stock that trades in a relatively narrow range year after year makes an excellent vehicle for selling puts. INTC traded in a relatively narrow range around the $20 level between 2006 and 2012 (with a couple of short term exceptions). Frankly, I was sorry to see it increase in price as it was a cash cow for put option income.

    I own INTC in a regular account and an IRA account, with dividends reinvested, and don't plan on selling on temporary setbacks. Also, a lower price means more DRIP shares which, ultimately, equals more dividend dollars.
    Oct 15, 2014. 09:37 PM | 1 Like Like |Link to Comment
  • Intel Jumped The Shark, Time To Sell [View article]
    I do vaguely remember that episode of "Happy Days" from 1977 but I'd never heard the term "jump the shark" (not that I'm too familiar with pop culture) during the past 37 years until I read it in the Casey Daily Dispatch on October 3 in the article titled "Foreign Policy Jumps the Shark" which also begins by describing the same scene. What a strange coincidence.
    Oct 15, 2014. 08:58 AM | Likes Like |Link to Comment
  • Intel Corporation declares $0.225 dividend [View news story]
    And so endeth a ten year streak of consecutive dividend increases. Guess the management at INTC isn't interested in ever obtaining the status of dividend aristocrat.
    Sep 12, 2014. 11:44 AM | Likes Like |Link to Comment
  • Why Does AT&T Have A 5% Dividend Yield? [View article]
    PVFederico: T is a company in which one invests; Tesla Motors and Twitter are companies in which one speculates. Big difference.

    You are correct, though, regarding the irrationality of the market--at least in the short term. However, over the very long term rationality tends to win out. If Tesla Motors and Twitter are still around in 20 years, I think you'll find they are more rationally priced based on historical earnings and their balance sheets and a more realistic view of future profits and growth.
    Aug 5, 2014. 11:28 AM | 5 Likes Like |Link to Comment
  • After Hour Gainers / Losers [View news story]
    At the time this report was generated, ABBV was down about 2.7% in after-hours trading. However, it made a rapid recovery and, according to the chart on TD Ameritrade, looks as though it closed a couple of cents above its 4 pm close.

    Perhaps SA should wait until after-hours trading closes before scaring us weak-hearted types half to death!
    Jul 18, 2014. 10:57 PM | 3 Likes Like |Link to Comment
  • San Francisco could be the Waterloo of the soda tax movement [View news story]
    587639: This is a free country . . . for a price!
    Jul 10, 2014. 11:14 PM | Likes Like |Link to Comment
  • Altria's Strong Dividend And Beer Investment Portend A Bright Future [View article]
    Can I be in charge of advertising? How about the slogan: "Altria, for all your Coke, poke, and smoke needs."
    Jul 3, 2014. 12:17 AM | 2 Likes Like |Link to Comment
  • Diamond Offshore raised at Morgan Stanley as floater availability has peaked [View news story]
    cyrano13: And I'm laughing all the way to the bank. :-)
    May 29, 2014. 02:30 PM | 1 Like Like |Link to Comment