Brian Nelson

Republic Services Looks to Strong 2015

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Best Ideas portfolio holding Republic Services (RSG) is a dominant player in the US non-hazardous solid-waste services industry. For those that may not be as familiar with the trash taker, the company is a powerful force within the industry thanks to its significant landfill ownership, the value of which continues to increase over time due to a variety of structural factors from citizen’s group opposition (Not-In-My-Back-Yard) to increasing regulatory and environmental hurdles. Waste Management (WM) and Waste Connections (WCN) round out the solid-waste industry’s oligopolistic, landfill ownership structure. During the fourth quarter, results released February 12, Republic Services generated annual revenue of $2.23 billion, up 3.9%, and exceeded consensus expectations by a couple pennies per share on an adjusted basis. … Read more

Intel Looks to Mobile to Overcome PC Weakness

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Intel (INTC) reduced its revenue guidance March 12, dropping expectations for the first quarter to $12.8 billion from $13.7 billion. The world’s largest semiconductor chip maker pointed to weaker-than-expected PC demand, as well as lower inventory levels in the PC supply chain. As far as Intel is concerned, management cited a lack of Windows XP refreshes from small and medium businesses, along with worsening macroeconomic conditions and currency headwinds as main factors in the decline.  Despite the reduction in revenue guidance, the mid-point gross margin expectations remain at ~60% for the period due to higher average selling prices offsetting any profit deleveraging caused by the lower expected volume of PC sales. The firm’s R&D and MG&A spending and depreciation expectations … Read more

When “Bad” News Is “Good” News…Take A Euro Trip?

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Pack the bags, kiss the grandkids, it’s time to do some traveling!!! Maybe to Europe? From a global perspective, for those whose wealth and income is generated in US dollars, you can arguably buy more with one US dollar today than at any other time in the past 12 years, according to a popular index that measures the value of the dollar versus a basket of other currencies. Expectations are being ratcheted up for impending interest rate hikes by the Fed, and this means that assets are flying into US greenbacks from all over the world. The dollar is strengthening against the euro, the pound, the loonie, the aussie, the rand, and the list goes on and on. This decade … Read more

Dividend Increases for the Week Ending March 13

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Below we provide a list of firms that raised their dividends during the week ending March 13. 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 Children’s Place Retail Stores (PLCE): now $0.15 per share quarterly dividend, was $0.1325. Discover Financial Services (DFS): now $0.28 per share quarterly dividend, was $0.24. Equity Lifestyle Properties (ELS): now $0.375 per share quarterly dividend, was $0.325. Equity Residential (EQR): now $0.5525 per share quarterly dividend, was $0.50. General Mills (GIS): now $0.44 per share quarterly dividend, was $0.41. Goldman Sachs (GS): now $0.65 per share … Read more

The Apple Watch

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Apple (AAPL) hosted a special event Monday, March 9, to show off its latest products and developments. The headliner of the event was the brand new Apple Watch, one of the most talked about gadgets in recent memory. Other topics for the recent addition to the Dow Jones Industrial Average index included iPhone momentum, growth in China, Apple TV updates, and the new MacBook development. Apple’s new MacBook Pro with Retina display looks to improve on the already solid foundation of Apple’s MacBook line. With several innovations, the lightest MacBook model has received solid reviews thus far. Despite the PC market being under pressure, Mac notebooks continue to experience growth. Another popular Apple product receiving an upgrade was Apple TV. … Read more

Dividend Increases for the Week Ending February 27

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Below we provide a list of firms that raised their dividends during the week ending February 27. 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 Albemarle (ALB): now $0.29 per share quarterly dividend, was $0.275. Canadian Imperial Bank (CM): now C$1.06 per share quarterly dividend, was C$1.03. Chico’s FAS (CHS): now $0.0775 per share quarterly dividend, was $0.075. Chubb (CB): now $0.57 per share quarterly dividend, was $0.50. Cohen & Steers (CNS): now $0.25 per share quarterly dividend, was $0.22. Comcast (CMCSA): now $0.25 per share quarterly dividend, was $0.225. Cubic Corp (CUB): … Read more

When the Facts Change

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The most valuable quality of any portfolio manager is the ability to change his or her mind, and not look back. When the facts change, so should the thesis. And the facts have changed with Dividend Growth portfolio holding Chevron (CVX). A look at the oil giant’s fourth-quarter results revealed a balance sheet that we flat-out were hoping to avoid, particularly for a commodity-producing entity. What was once a healthy net cash position just a few quarters ago has now ballooned into a $15 billion net debt position and a $27 billion total debt position overall. The pace of change has been incredible, and Chevron continues add more leverage as we write. Just last week, it sold another $6 billion … Read more