PBR

Not Doom and Gloom – But Just Cautious…

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You wouldn’t know it on the basis of the strong US market action January 26, but it wasn’t all quiet in overnight trading. Local markets in China (FXI) took another hit, with Shanghai and Shenzhen exchanges experiencing declines to the magnitude of 6%-7%+ on the session. Though some optimistically dismiss the local China markets as irrelevant, the implications on weakened Chinese banks, other Asian nations via trade, and interconnected financial institutions from Standard Charted to HSBC (HSBC) and even Citigroup (C) are material, in our view, and we’re paying close attention. Some may even say that China stocks represent less than 15% of household financial assets in the country — certainly not enough to cause a global calamity… Or is … Read more

China, Petrobras and the Circling Sharks

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The Federal Reserve meeting last week came and went, and now the markets are back to focusing on fundamentals, as they should. The problem for equity investors, however, is that the fundamentals aren’t great, and it is becoming increasingly more difficult for even the most bullish investors to find reasons for optimism, at least in the near term. The economic environment in China (FXI) continues to worsen. We outlined our grave concerns regarding the implications of its collapsing stock market on the health of the country’s property market, and the resulting consequences on China’s largest banks. Commodity-linked entities in China continue to feel pain, and the preliminary reading on the Caixin China manufacturing purchasing managers’ (PMI) index fell to Financial … Read more

La Decada Perdida Revisitado? Brazil’s Economy Is Teetering on Disaster

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The silhouette of Christ Redeemer in Rio de Janeiro. The 2014 World Cup and preparations for the 2016 Rio De Janeiro Olympic Games should have given a boost to Brazil’s (EWZ) economic health, but the country is facing its toughest times in decades. Once lauded for its tremendous economic growth prospects thanks to a rising middle class and a commodity boom, Brazil is now reeling from public discontent related to inflation, corruption, complicated regulations, and a burdensome debt load. The corruption scandal at state-run Petrobras (PBR) may only be the tip of the iceberg, and it has sent shockwaves within political circles going all the way to the top. Protests in the country have been recurring. Brazil, the world’s seventh-largest economy … Read more

This Just Feels Different…Mr. Brown

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We think the correction is coming. Here are 7 reasons why we plan to reduce exposure to cyclicals and add some protection to the portfolios. By Brian Nelson, CFA I hope you don’t mind my using baseball analogies. Baseball and investing are perhaps the only two endeavors where if you get more than half right, you’re at the top of the list. In any case, you don’t have to be a big baseball fan to appreciate the similarities. I used an example with Ted Williams in this piece about fat pitch investing, but there’s another analogy that is worth sharing. I’ve been to the Louisville Slugger Museum and Factory Tour a few times in the past couple years. My little … Read more

Yikes! Brazil’s Real Plunges; Protests in Hong Kong

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Recession worries in Brazil (EWZ) sent the Brazilian real to a five-year low after poll results showed President Dima Rousseff gaining a lead over candidate Marina Silva, according to Bloomberg. Dropping a couple percent versus the US dollar today, its biggest one-day drop in three years, the Brazilian real has fallen more than 10% during the third quarter. Many had hoped a new government would spur economic growth in the country. The Brazilian economy is an important one, a component of the faster-growing BRIC nations, and many firms in our coverage universe are dependent on its resilience. This could potentially compound problems in Latin America, with Argentina defaulting on its debt earlier this year. Fundamentals at PetroBras (PBR), Gol Linhas … Read more

ExxonMobil’s Great Earnings Report and Promising Growth Outlook

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Image Shown: An overview of ExxonMobil Corporation’s strategy to generate shareholder value going forward. Image Source: ExxonMobil Corporation – Second Quarter of 2021 Earnings IR Presentation By Callum Turcan We added shares of ExxonMobil Corporation (XOM) as an idea to both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios back on June 27 (link here) to gain greater exposure to the ongoing recovery in the global energy complex. On a day-to-day, month-to-month basis, raw energy resources pricing (crude oil, natural gas, and natural gas liquids) will bounce around (commodity prices are inherently volatile). However, what we have been interested in the most is the sharp recovery seen in raw energy resources pricing since the start of 2021. That includes … Read more

Dividend Increases/Decreases for the Week August 20

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Below we provide a list of firms that raised their dividends during the week ending August 20. 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 American Financial’s (AFG): now $2.24 per share annual dividend, was $2.00. Aptiv PLC 5.5% CNV PFD A (APTV.PA): now $1.375 per share quarterly dividend, was $0.22. Brigham Minerals (MNRL): now $0.35 per share quarterly dividend, was $0.32. Cable One (CABO): now $2.75 per share quarterly dividend, was $2.50. Cboe Global Markets (CBOE): now $0.48 per share quarterly dividend, was $0.42. Dean Foods (DF): now $0.10 per … Read more

Chevron Investing in Biofuels and Hydrogen

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Image Source: Chevron Corporation – August 2021 IR Presentation On June 27, 2021 (link here), we added Chevron Corporation (CVX) as an idea to both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. We are huge fans of the energy giant’s capital appreciation potential, with our fair value estimate standing at $115 per share of CVX, well above where Chevron is trading at as of this writing. Additionally, we are huge fans of Chevron’s dividend growth potential in the wake of the recovery seen in raw energy resources pricing year-to-date. Shares of CVX yield ~5.6% as of this writing, and we expect Chevron will steadily grow its payout going forward, aided by its promising free cash flow growth trajectory. … Read more

Dividend Increases/Decreases for the Week of May 27

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Below we provide a list of firms that raised/lowered their dividends during the week ending May 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      Ashland (ASH): now $0.335 per share quarterly dividend, was $0.300. Bank of Montreal (BMO): now CAD 1.39 per share quarterly dividend, was CAD 1.33. Bank of Nova Scotia (BNS): now CAD 1.03 per share quarterly dividend, was CAD 1.00. California Resources Corporation (CRC): now $0.17 per share quarterly dividend, was $0.16. Canadian Imperial Bank (CM): now CAD 0.83 per share quarterly dividend, was CAD 0.81 (post-split … Read more

Dividend Increases/Decreases for the Week of August 12

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Below we provide a list of firms that raised their dividends during the week ending August 12. 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                AirSculpt Technologies (AIRS): now $0.41 per share special dividend. Alpha Metallurgical (AMR): now $0.392 per share quarterly dividend, was $0.375. Badger Meter (BMI): now $0.225 per share quarterly dividend, was $0.20. Barclays (BCS): now $0.105 per share semi-annual dividend, was 4.0p. Barnwell (BRN): now $0.015 per share dividend. Berry (BRY): now $0.62 per share quarterly dividend, was $0.06. Broadridge Financial Solutions (BR): now $0.725 per … Read more