Brian Nelson

Sanofi: The First Victim in the Great Insulin Price War

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The steady growth expected from Diabetes products has come to an abrupt halt. Is Sanofi adequately prepared to replace the revenue loss of its top-selling product? By Alexander J. Poulos and Kris Rosemann The diabetes pandemic continues to expand at a rapid pace. Diabetes is a condition where the body is unable to regulate the amount of sugar found in the blood correctly, and it is differentiated into two distinct types. Type one diabetes is defined as a condition where the body does not produce any insulin, thus requiring regular supplementation to maintain proper regulation. The second and more common version is Type 2 diabetes where the body loses the ability to produce an adequate amount of insulin to regulate … Read more

Who’s Driving Who: The Future of the Automakers

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Image Source: HimmelrichPR Let’s dig into some recent developments surrounding the auto market, and how technological and strategic innovation could reshape the future of the space. By Kris Rosemann There have been a number of interesting developments related to the auto space recently, from Theresa May and the UK government triggering Brexit to pressure on the US used vehicle and auto lending markets to the seemingly inevitable proliferation of autonomous vehicles. Such progressions should not come as a surprise; in fact, we outlined some potential concerns with the long-term health of the US auto market in July 2016, “Sharp Curves Ahead for US Auto Market?” The cyclical US auto market may be plateauing after multiple years of tremendous sales levels … Read more

Analyzing Amgen’s Sudden Fall

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Amgen’s share price has run up in anticipation of positive results from its key pipeline product Repatha. Now that the results are out, doubt has crept in concerning the overall viability of the product. Let’s examine. By Alexander J. Poulos Amgen (AMGN) remains a biotech bellwether, as the company continues to profit from its legacy product line. The established product line enhances the equity’s appeal as the cash flow generated is returned to shareholders in the form of a generous dividend. The company currently yields ~2.8%. For many conservative, income-seeking investors Amgen remains a top consideration in what many perceive as a “risky industry.” Amgen’s Dividend Cushion ratio >> That said, what many hopeful investors may not realize is that … Read more

Is There Value in DaVita?

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With healthcare the primary focus in Washington, let’s evaluate the investment case for DaVita. We discuss how potential changes can impact the economics of the dialysis market. By Alexander J Poulos The healthcare sector remains in focus with the renewed emphasis on repealing/replacing the Affordable Care Act. The uncertainty that has crept into the industry may offer an appealing entry into the industry for those currently on the sidelines. The write-up below discusses the prospects of DaVita Inc (DVA), one of the largest providers of dialysis care in the United States. The Inelastic Demand for Dialysis The dialysis market mirrors the use of insulin, the classic economics example of inelastic demand. The demand for dialysis remains unfazed irrespective of market … Read more

Dividend Increases/Decreases for the Week Ending March 24

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Below we provide a list of firms that raised/lowered their dividends during the week ending March 24. 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 8point3 Energy Partners (CAFD): now $0.2565 per share quarterly dividend, was $0.249. Canadian Banc Corp (CNDCF): now CAD 0.10833 per share monthly dividend, was CAD 0.10458. Citizens Financial Services (CZFS): now $0.425 per share quarterly dividend, was $0.42. Cross Timbers Royalty Trust (CRT): now $0.089461 per share monthly dividend, was $0.061822. Enduro Royalty Trust (NDRO): now $0.040901 per share monthly dividend, was $0.017331. Fulton Financial (FULT): … Read more

Dividend Increases/Decreases for the Week Ending March 17

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Below we provide a list of firms that raised/lowered their dividends during the week ending March 17. 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 AirBoss of America (ABSSF): now CAD 0.07 per share quarterly dividend, was CAD 0.065. Ashford Hospitality Prime (AHP): now $0.16 per share quarterly dividend, was $0.12. CareTrust REIT (CTRE): now $0.185 per share quarterly dividend, was $0.17. CECO Environmental (CECE): now $0.075 per share quarterly dividend, was $0.066. Dollar General (DG): now $0.26 per share quarterly dividend, was $0.25. Federal Agricultural Mortgage (AGM): now $0.36 per … Read more

The “Year of Evangeline Adams” Continues

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Brian Nelson, CFA March 15th marked the 106th consecutive trading session that neither the Dow Jones Industrial Average (DIA) nor the S&P 500 (SPY) has declined 1% during any one day. The streak is now the seventh longest in stock market history for the Dow and the 10th longest for the S&P 500. The markets are now 49 days shy from tying the March 1, 1966, record for the Dow and 79 days shy from the November 21, 1963, record that ended the day before JFK was assassinated. What you see above is not a representation of the latest consecutive streak, but instead a visual of the upward trajectory of the S&P 500 since the March 2009 panic bottom, now more … Read more

Buffalo Wild Wings: It’s Time to Start Delivering?

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Best Ideas Newsletter portfolio holding Buffalo Wild Wings is battling a challenging operating environment. Management is searching for ways to shore up performance, but some shareholders are getting antsy. Is a BWLD-WING deal in the cards?  By Kris Rosemann It’s no secret that the restaurant industry has struggled of late, “Restaurant Traffic – What’s Going On?” “Examining Same-Store Sales in the Restaurant Industry.” Best Ideas Newsletter holding Buffalo Wild Wings (BWLD) was not spared the pain in 2016, as same-store sales fell more than 2% at both company-owned and franchised restaurants from 2015 levels, though management is optimistic for 2017 after a positive read on the measure through the first several weeks of the year, “Best Ideas Roundup: Visa, Facebook, … Read more

Intel Makes Strong Move into Autonomous Driving

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Image Source: Intel Newsletter portfolio holding Intel has agreed to acquire Mobileye, a leading provider for computer vision for Advanced Driver Assistance Systems (ADAS), for $15.3 billion in cash. “…we like what the deal brings for Intel. The company has effectively cut ties with its history as a PC chip behemoth, and is driving ahead full force into the broader connected devices market. The acquisition puts Intel at the forefront of the autonomous driving market, and its ownership of end-to-end solutions in the space not only gives it competitive advantages in the driverless car market, but also in the adjacent data center market.” — Kris Rosemann By Kris Rosemann Fresh off of a fourth quarter that its CEO called “a … Read more

Dow 21,000+; Forward P/E on S&P 500 ~18!!!

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By Brian Nelson, CFA To say that the broader equity market is “extended” is an understatement. After testing the 20,000 mark on the Dow Jones Industrial Average (DIA), stocks have now plowed through 21,000 in such a fashion that can only be compared to the euphoric trading activity of 1999 when the index surged to 11,000 from 10,000 over roughly the same time frame. Who remembers the days of the dot-com bubble? The market is clearly off its rocker, but the market isn’t always on its rocker. Stock prices under and overshoot intrinsic value all of the time. It’s a part of the markets, as much as oxygen is necessary for human life. The markets overshot to the downside during … Read more