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Recent Articles
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Disney: Iger’s Back, Peltz Concedes, Thousands of Jobs Gone, Dividend Coming Back Soon
Feb 11, 2023
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Image Source: Valuentum.
Disney has a lot of work to do. The company’s Parks, Experiences and Products segment has recovered nicely from the worst of the COVID-19 pandemic, but pricing increases may put the experience out of reach for many. Disney+ subscribers may have peaked given that the company will begin to cut costs to the bone in an effort to stop the billions in cash burn. Disney ended the year with $8.47 billion in cash and equivalents and a massive $48.4 billion debt load. Investors are happy that Bob Iger is back and with the company’s plans to re-instate a modest dividend later this year, but we think former CEO Bob Chapek may have gotten a bad shake. Chapek took over the week of the huge COVID-driven market crash in February 2020 and led the firm through a once-in-a-century pandemic, only to be shown the door before his investments could ever be given a chance of bearing fruit. There’s more to this story than we’ll ever know, and we doubt that Disney or Iger will have much to say about it.
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Dividend Increases/Decreases for the Week of February 10
Feb 10, 2023
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Let's take a look at firms raising/lowering their dividends this week.
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Chipotle’s Fourth Quarter 2022 Results Not Bad, Has Incredible Long-Term Unit Restaurant Potential
Feb 9, 2023
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Image Source: Valuentum.
Long term, Chipotle has plans to expand to 7,000 restaurants, up from nearly 3,200 restaurants at the end of 2022. The company still holds the wild card of expanding into the breakfast daypart, which we believe is a huge source of upside potential for the burrito maker, especially as it adds more drive-throughs across its restaurant portfolio. We continue to like shares.
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Net-Cash-Rich Vertex Pharma’s Lucrative Cystic Fibrosis Franchise Continues to Power Performance
Feb 8, 2023
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Image Source: Vertex Pharma.
We’re huge fans of Vertex Pharma. We love its net-cash-rich balance sheet, strong free-cash-flow generating capacity and lucrative and established CF franchise. We also like its long-term potential in CRISPR gene-editing technology and pain management alternatives to opioids and believe the company has other opportunities that may eventually reach commercialization across its pipeline. Our fair value estimate of Vertex Pharma stands at $320 per share, and we continue like the company as our primary biotech exposure in the Best Ideas Newsletter portfolio.
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