|
|
Recent Articles
-
ASML Holding Retains Dominant Position in High-End Semiconductor Equipment Space
Aug 11, 2022
-
Image Shown: ASML Holding NV effectively has a monopoly on the high-end space of the semiconductor equipment industry as the Dutch company sells the only lithography systems that can produce the most advanced cutting edge “chips.” We are huge fans of the company’s business model. Image Source: ASML Holding NV – Second Quarter of Fiscal 2022 IR Earnings Presentation.
ASML Holding is a tremendous enterprise with a bright growth outlook, a healthy balance sheet, and an impressive business model. The company’s management team is incredibly shareholder friendly. We view both ASML Holding’s dividend growth and capital appreciation upside quite favorably, and think the market is “getting it wrong” on this company considering shares of ASML have sold off heavily year-to-date, even though its longer term free cash flow growth trajectory is as strong as ever.
-
Garbage Hauler Republic Services Beats Estimates, Raises Guidance
Aug 10, 2022
-
Image Shown: Shares of newsletter portfolio idea Republic Services have put up strong performance so far year-to-date in the face of volatile capital markets.
There is a lot to like about Republic Services as the waste management firm is a tremendous free cash flow generator with ample pricing power. Management is incredibly shareholder friendly, as seen through recent per share dividend increases, and the company has been firing on all cylinders of late. We continue to like Republic Services in our newsletter portfolios. Our recently updated fair value estimate for RSG sits at $132 per share and the top end of our fair value estimate range sits at $158 per share of Republic Services.
-
Best Idea Berkshire Hathaway Continues to Impress
Aug 10, 2022
-
Image Shown: Berkshire Hathaway Inc is a stellar cash flow generator in almost any operating environment. Image Source: Berkshire Hathaway Inc – 10-Q SEC filing covering the Second Quarter of 2022.
Berkshire Hathaway Inc reported second quarter 2022 earnings that saw its ‘operating earnings’ metric surge higher versus the year-ago level. This metric removes realized and unrealized gains/losses in its large equity portfolio from the picture to provide investors with a better understanding of the company’s underlying performance. Due to the downturn in equity markets seen during the first half of this year, Berkshire Hathaway’s GAAP net income swung to a large net loss last quarter. We include shares of Berkshire Hathaway Class B (ticker: BRK.B) in the Best Ideas Newsletter portfolio, and our fair value estimate sits at $320 per share with room for upside.
-
Exxon Mobil Surging Higher with Room for Upside
Aug 8, 2022
-
Image Shown: Exxon Mobil Corporation put up stellar results when reporting its second quarter earnings in late July 2022. Image Source: Exxon Mobil Corporation – Second Quarter of 2022 IR Earnings Presentation.
Exxon Mobil Corp posted second quarter 2022 earnings that flew past consensus top- and bottom-line estimates. The tailwind provided by elevated raw energy resources prices, rising oil & gas production volumes, ongoing cost structure improvement initiatives, and strong “crack spreads” (refining margins) more than offset headwinds arising from its decision to exit Russia in March 2022 and foreign currency headwinds due to a strong U.S. dollar. Exxon Mobil is one of our favorite energy ideas, and we include shares of XOM in several of the newsletter portfolios as it offers investors a nice combination of dividend growth and capital appreciation upside potential. Shares of XOM yield ~3.6% as of this writing, and our fair value estimate sits at $105 per share of Exxon Mobil.
|
