Dividend Increases/Decreases for the Week Ending June 14
June 14, 2019
Below we provide a list of firms that raised their dividends during the week ending June 14. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Andrew Peller (ADWPF): now $0.215 per share annual dividend on Class A shares, was $0.205. Blackstone/GSO Long-Short Credit Income Fund (BGX): now $0.122 per share monthly dividend, was $0.115. Blackstone/GSO Strategic Credit Fund (BGB): now $0.114 per share monthly dividend, was $0.109. Capstead Mortgage (CMO): now $0.12 per share quarterly dividend, was $0.08. Caseys General Stores (CASY): now $0.32 per share quarterly dividend, was $0.29. Cherry
RYAM: Terrible Business, Potentially Cheap Stock
June 13, 2019
Image Source: First Quarter 2019 Financial Presentation Materials Rayonier Advanced Materials has seen better days, but has the market overreacted? We don’t think there are many businesses that have poorer industry structure, but if the company can get things back on track, normalized free cash flow indicates substantial upside potential. Commodity prices and tariffs remain big wild cards to this story, and the Valuentum investor always waits for technicals and momentum indicators to turn decidedly positive first. By Brian Nelson, CFA Rayonier Advanced Materials (RYAM) was spun out of Rayonier (RYN) a few years ago. The company is a leader “of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in cell phone and computer screens, filters
Our Reports on Stocks in the Agricultural Chemicals Industry
June 12, 2019
Image Source: Potash Corp.
We’ve dropped coverage of stocks in the Agricultural Chemicals industry: CF, CMP, MOS, NTR, SMG.
The United Technologies-Raytheon Merger Will Create a Defense and Commercial Aerospace Giant
June 11, 2019
Image Source: United Technologies Corporation – IR Presentation By Callum Turcan On June 9, United Technologies Corporation (UTX) and Raytheon Company (RTN) agreed to a merger of equals that if approved, will create a new giant in the aerospace & defense world. The combined company will sell anything from Patriot surface-to-air missile systems to national governments to power generation and cyber protection products for commercial aircraft. United Technologies and Raytheon hope that as a combined entity, the new company will have the scale required to be truly competitive in the commercial aerospace industry while maintaining the status of a reliable defense contractor. Both CEO’s went on CBNC together to defend the deal and explained it as “complementary” to highlight the
Beyond Meat’s Market: $5 Billion or $1.5 Trillion?
June 11, 2019
Image: The Beyond Burger accounted for about 70% of the company’s sales in 2018. The big question: how big is Beyond Meat’s opportunity? Is it $5 billion or $1.5 trillion? By Valuentum Analysts Shares of Beyond Meat Inc (BYND), one of the fastest-growing plant-based meat companies, have exploded higher since the meatless-meat producer went public in May. While this isn’t a stock we normally would like given the short operating history and lofty market expectations, we wanted to draw attention to the enormous potential Beyond Meat is targeting. As of the market close on June 10, Beyond Meat had a market capitalization of $10.1 billion. We estimate that if Beyond Meat is able to generate an adjusted EBITDA margin in
Exact Sciences: Great Company But Most of the Upside Is Behind It
June 7, 2019
Image Source: Exact Sciences Corporation – IR Presentation By Callum Turcan Exact Sciences (EXAS) operates as a molecular diagnostics company built around its Cologuard offering which was approved by the US FDA in August 2014. Cologuard is used to screen adults of any gender, particularly those that are 50 and older, who are at average risk for colorectal cancer by testing stool samples. The long-term aim of Exact Sciences is to increase the uptake of its Cologuard offering by encouraging more Americans to get colorectal cancer screenings, which in turn could make Exact Sciences profitable sometime in the future. Citing data from the American Cancer Society, Exact Sciences notes colorectal cancer is the second deadliest cancer in American after lung
Dividend Increases/Decreases for the Week Ending June 7
June 7, 2019
Below we provide a list of firms that raised their dividends during the week ending June 7. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Alexandria Real Estate Equities (ARE): now $1.00 per share quarterly dividend, was $0.97. Boyd Gaming (BYD): now $0.07 per share quarterly dividend, was $0.06. Capital Southwest (CSWC): now $0.39 per share quarterly dividend, was $0.38. Cracker Barrel (CBRL): now $1.30 per share quarterly dividend, was $1.25. Essential Properties (EPRT): now $0.22 per share quarterly dividend, was $0.21. Sabine Royalty Trust (SBR): now $0.3591 per share monthly
Dollar General Continues to Lead
June 5, 2019
Image Source: Dollar General Corporation – IR 2016 Presentation By Callum Turcan Dollar General Corporation (DG) is one of the holdings in the simulated Best Ideas Newsletter, and shares yield 1% as of this writing. The company had ~15,500 stores situated across 44 states as of March 1, 2019, making Dollar General the largest discount retailer by store count. Its business model is built around selling low-cost items that e-commerce firms couldn’t economically ship without being part of a much larger order. Around three-quarters of Dollar General’s stores are located in towns with populations of 20,000 or less, giving it another edge on its competitors like Amazon Inc (AMZN) due to the logistical problems that arise when selling very small
Cracker Barrel ‘s Lofty (and Hidden) Dividend Yield
June 5, 2019
Image Source: Cracker Barrel Presentation (10/17) By Brian Nelson, CFA Incredible. Cracker Barrel (CBRL) just issued announced another special dividend, to the tune of $3 per share. This special dividend is in addition to the regular quarterly dividend of $1.30 per share, which was increased 4% from the previous quarterly dividend of $1.25 per share. All in, annualizing the new quarterly rate and including the special dividend in the sum, Cracker Barrel yields nearly 5% at the time of this writing. You won’t hear many talking about the firm’s lofty yield because a large part of it has been from the special-dividend variety, which has been recurring for the past many years. On a fundamental basis, we have no qualms
Gold Is But a Shiny Yellow Metal
June 5, 2019
Image shown: The performance of an ETF tracking the price of gold bullion, less the expenses to run the ETF, since 2011. “What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As ‘bandwagon’ investors join any party, they create their own truth – for a while.” — Warren Buffett (2011 annual letter to shareholders) By Brian Nelson, CFA Gold prices have been under pressure for years. I’m always uncomfortable talking about the investment prospects of gold (GLD). It’s a sensitive
