ETF Analysis: Healthcare and Pharma
September 11, 2018
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Our Report on Stocks in the Electronic Components Industry
September 10, 2018
Image Source: Mike Mozart Structure of the Electronic Suppliers Industry The electronic suppliers industry is composed of firms that provide services to companies that use electronic components. The industry is very cyclical, subject to rapid changes in technology, and highly competitive (from both rivals and customers). Participants generally do not have proprietary manufacturing processes, and performance is tied to the success of their customers’ products in the market. Significant pricing pressure and shifts in market share are common, and component supply shortages and rising commodity costs can pressure margins. We don’t like the structure of the group. Please select the image below to download the report on utilities in our coverage. It is pdf document. << Our Dividend Reports
Ford Facing Bumpy Road
September 7, 2018
Image source: Michael The second-largest US automaker is facing a number of challenges in its business, and Moody’s recently cut its credit rating to one notch above junk status. Let’s take a look at the factors at play behind the downgrade. By Kris Rosemann There are a number of moving parts at Ford (F) these days, and the uncertainty surrounding the uphill climb it is facing has resulted in speculation over a potential dividend cut and a credit downgrade from Moody’s. The company’s plan to cease nearly all production of cars for the US market caught many investors by surprise, and it continues to struggle in multiple international markets. The most recent headline it made was the release of its August
Dividend Increases/Decreases for the Week Ending September 7
September 7, 2018
Below we provide a list of firms that raised their dividends during the week ending September 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 American Tower (AMT): now $0.79 per share quarterly dividend, was $0.77. BHP Billiton (BHP): now $1.26 ADS semi-annual dividend, was $1.10. Delaware Investments Dividend&Income Fund (DDF): now $0.0968 per share monthly dividend, was $0.0961. Eastgroup Properties (EGP): now $0.72 per share quarterly dividend, was $0.64. Logitech International (LOGI): now $0.67 per share annual dividend, was $0.41. Macquarie Global Infrastructure Total Return Fund (MGU): now $0.42 per
In the News: Musk, Facebook, and GameStop
September 6, 2018
We’re not sure that Tesla has things figured out. Social media entities, including one of our favorites Facebook, have fallen on hard times given negative sentiment. GameStop could sell itself for a significantly higher price than what the market is currently willing to exchange shares. By Brian Nelson, CFA Let’s get one thing straight: we have a tremendous amount of respect for Elon Musk. He is a tremendously successful person and entrepreneur, but some of the things he has done during the past few months have been puzzling. We think we might be able to understand some of the pressures involved in running a business and trying to satisfy a growing list of customers (and skeptics), but what makes Elon
Verint Raises Guidance; Shares Surge After-Hours
September 5, 2018
Image Source: Verint Shares of simulated Best Ideas Newsletter portfolio idea Verint surged after hours September 5 following a strong fiscal second quarter report. By Kris Rosemann Simulated Best Ideas Newsletter portfolio idea Verint (VRNT) turned in an impressive second quarter report September 9, and shares leapt in after-hours trading after management raised its full year top- and bottom-line guidance. The company’s focus on actionable intelligence in customer engagement and cyber intelligence, which includes high-growth areas such as analytics, artificial intelligence, and automation technologies, is being met by strong demand as evidenced by its 11% year-over-year revenue growth reported in the quarter. Non-GAAP revenue in its ‘Customer Engagement’ segment (~66% of total revenue) advanced 10.6% from the year-ago period, and its
Dollar General Keeps Growing; Guidance Raised
September 4, 2018
Image shown: Dollar General’s share price performance since early 2017. It was first highlighted in the simulated Best Ideas Newsletter portfolio in April 2017. Simulated Best Ideas Newsletter portfolio idea Dollar General turned in a solid fiscal second quarter report and subsequently raised its top-line guidance. Shares have advanced nearly 60% since we first highlighted the company, and its business continues to be a model of consistency. Kris Rosemann Simulated Best Ideas Newsletter portfolio idea Dollar General (DG) continues to drive its top line higher, and its consistently positive same-store sales growth over the past nearly three decades has been nothing short of impressive. Its fiscal 2018 second quarter report, results released August 30, only reaffirmed such a notion. Strength
Near-term Optimism at Caterpillar and Deere
August 31, 2018
Caterpillar and Deere serve notoriously cyclical end markets, but both companies appear to be quite optimistic with their near-term outlooks, even as trade issues weigh on their international operations. Shares of Cat yield ~2.4%, while shares of Deere yield ~1.9%. By Kris Rosemann Caterpillar Raises Guidance Despite Tariff-Related Costs With trade issues casting a shadow of uncertainty for a number of multinational corporations, stocks such as Caterpillar (CAT) have attracted a notable amount of negative attention. Caterpillar’s operations source material amounts of inputs that are subject to tariffs, and the company serves markets and regions that may be most impacted by global trade tensions. Caterpillar is taking the pressure in stride, however. During in its second quarter report, released July
Stellar Keytruda Growth Powers Merck Higher
August 31, 2018
Shares of pharmaceutical giant Merck continue to accelerate thanks in large part to the growth of its key oncology asset Keytruda. Even though Merck is a well-established entity, future growth is highly correlated to the continued expansion of Keytruda as it continues to gain market share thanks in large part to superior clinical data and label expansion. By Alexander J. Poulos Key Takeaways Keytruda remains a star performer powering Merck’s quarterly performance. We remain big fans of Keytruda’s potential as the recent clinical data underscores the best in class potential of the molecule. The performance of Keytruda is critical for Merck as sales deceleration in former growth properties begin to weigh on overall sales of the company. Why are we
