Recent data points from earnings releases in the past couple weeks have created a cloud of uncertainty over our outlook on fourth-quarter earnings season. But we believe our portfolio is well-positioned within pockets of strength in the global economy and littered with paid-to-wait dividend-yield opportunities that will benefit once short-term, temporary issues inevitably pass.
First, let’s talk about trends impacting our aerospace exposure, which remains our largest industry weighting in the portfolio by far. Just this week, Southwest Airlines (LUV) announced one of the largest orders for planes in aerospace history, tying up a $19 billion deal (at list prices) with Boeing (BA) for delivery of over 208 narrowbody aircraft, including 200 of Boeing’s upgraded 737, the MAX. This order comes just a few weeks after private Indonesian carrier, Lion Air…
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Inside This Issue
Investing in Pockets of Strength, page 1
More Relative Outperformance, page 1
AMR Files For Bankruptcy, as Expected, page 4
Home Depot Reports Strong 3Q Results, Raises Dividend, page 5
Wal-Mart’s 3Q Earnings Decline But US Comps Reverse; Low-End Consumers Increase Spending, page 6
Intel Reduces Fourth-Quarter Revenue Forecast on Supply Chain Disruptions, page 6
Best Buy’s Fiscal Third-Quarter Results Disappoint; Excessive Promotions and Weakness in Europe to Blame, page 8
Do Not Take DuPont’s Downward Revision Lightly, Signals Fourth-Quarter Earnings Season May Disappoint, page 10
Company Spotlight: Fusion-iO May Have the Technology of the Future But Expectations Are Incredible, page 11
Ford Reinstates a Quarterly Dividend, page 12
Salesforce.com Posts Mixed 3Q Results; We’re Not Impressed with Profitless Growth, page 13
How to Find Hidden Investment Gems, page 14
Ideas for Your Radar, page 15
Featured Reports: Helmerich & Payne, NeuStar, Western Union, Synaptics, Avon Products, page 17
Valuentum’s Stock Picking Methodology, page 22