Mutual Fund Tragedy, ROE, and the Time Horizon
January 8, 2018
Comparisons between growth versus value stocks may never go away, but President of Investment Research Brian Nelson explains why you should know better than to think stocks can easily be divided up as such. He talks about this, as well as the pitfalls of ROE (return on equity) and how to think about the time horizon. Running time: ~10 minutes.
Nelson: Is Visa the Best Company Ever?
January 8, 2018
Image Source: Visa’s fiscal fourth-quarter 2017 earnings slide deck.
Visa’s business model is phenomenal and its competitive advantages among the best in the world. The company’s free cash flow generation is remarkable, and it alone covers its cash dividend payment by more than 5 times. There are few companies with higher levels of profitability than Visa’s, and even fewer that also have as strong of growth potential. The company’s valuation is starting to get a little stretched, but it has the free-cash-flow generation to grow into it.
Dividend Increases for the Week Ending January 5
January 7, 2018
Let’s take a look at companies raising/lowering their dividends this week.
Markets Update: January 5, 2018
January 6, 2018
Image shown: The Dow Jones Industrial Average has performed incredibly since the news of the election of Donald Trump.
We’re off to a great start in the New Year. Let’s see how a few newsletter portfolio ideas are performing.
Admit It: You Know Nothing About the Dividend
January 5, 2018
President of Investment Research Brian Nelson talks about how the concept of a dividend is completely miscontrued due to societal and cultural reasons, but he also explains why he likes dividends. Warning: He’s going to bust out Monopoly pieces. You don’t want to miss this! Running time: ~15 minutes.
Intel Facing Selling Pressure Over Security Issue
January 4, 2018
Image Source: Intel.
Dividend Growth and Best Ideas Newsletter idea Intel is facing pressure after reports of a chip flaw surfaced. We’re not overreacting to what may be a transient issue, but we’re monitoring developments like a hawk.
SMART Global: A Leader in Specialty Memory Solutions
January 4, 2018
SMART Global is an interesting idea in the memory space, but obsolescence risk and overcapacity will always be two primary concerns. This one is still worth having on your radar.
The Fed’s Dislocation and Too Few Stocks?
January 2, 2018
President of Investment Research Brian Nelson talks about how central banks may be pushing savers into riskier assets than what might otherwise be warranted by their risk profiles, how interest rates should be viewed within the valuation context, and whether too few stocks to invest in is driving a ‘rising tide lifts all boats’ dynamic. A discussion about the severe limitations of the price-to-earnings ratio is included. Running time: ~14 minutes.
2018 Healthcare and Biotech Outlook
January 2, 2018
Image Source: Global Panorama.
2017 will undoubtedly go down as one of the most fabulous years for the stock market, and while we continue to warn of the dangers associated with the market continuing to trade at lofty valuations, we are intrigued by the outlook for big cap pharma and biotech in the near term. Changes in the US tax laws will likely have a profound impact on the industry.
Dividend Increases for the Week Ending December 29
January 1, 2018
Let’s take a look at companies raising their dividend this week.
