PSTG

There Will Be Volatility

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By Brian Nelson, CFA Last year, 2022, was a big test for equity investors, and the downside volatility that we witnessed during the year wasn’t comfortable, to say the least. Following the COVID-19 crash and rebound during 2020, and then the market surge in 2021, it wouldn’t be a stretch to say many investors’ heads are probably still spinning from all the volatility witnessed to start this decade. That said, part of what we’ve been warning about the past few years with respect to the equity market, especially in Value Trap, is that the proliferation of price-agnostic trading (e.g. quant, machine/algorithmic trading, etc.) will only lead to more and more market volatility, so while we were somewhat surprised by last … Read more

Cisco Systems Reduces Guidance After Noisy Quarter, Remains Free Cash Flow Giant Backed By Pristine Balance Sheet

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Image Source: Cisco Systems Inc – Third Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On May 18, Cisco Systems Inc (CSCO) reported third quarter earnings for fiscal 2022 (period ended April 30, 2022) that missed consensus top-line estimates but beat consensus bottom-line estimates (specifically for its non-GAAP performance). One of the biggest updates from this earnings report was that Cisco Systems reduced its full year guidance for fiscal 2022. The news initially sent shares of CSCO sharply lower, though Cisco Systems remains a free cash flow cow with a pristine balance sheet. It was an incredibly noisy earnings report for the firm for reasons we will cover in this article. We include Cisco Systems as an idea … Read more

Cisco Posts Great Earnings Update; Increases Dividend and Share Buyback Authority

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Image Shown: Cisco Systems Inc is a very shareholder friendly company. Image Source: Cisco Systems Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On February 16, Cisco Systems Inc (CSCO) reported second quarter earnings for fiscal 2022 (period ended January 29, 2022) that smashed past both consensus top- and bottom-line estimates. Shares of CSCO surged higher initially after its earnings were made public as the company offered up promising near term guidance, indicating that its positive momentum seen of late is expected to continue. We include shares of CSCO as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Cisco announced a 3% sequential increase in its quarterly dividend in conjunction … Read more

Cisco Systems Posts Solid Earnings Update; Supply Chain Hurdles Impacting Near Term Outlook

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Image Source: Cisco Systems Inc – First Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On November 17, Cisco Systems Inc (CSCO) reported first quarter earnings for fiscal 2022 (period ended October 30, 2021) that missed consensus top-line estimates but beat consensus bottom-line estimates. Shares of CSCO fell initially after its latest earnings update was published due to its near term guidance coming in a tad softer than expected, though we caution that this is primarily due to supply chain headwinds negatively impacting Cisco Systems and the networking hardware industry more broadly. As global health authorities work towards bringing the coronavirus (‘COVID-19’) pandemic to an end worldwide, the supply chain situation should improve going forward. We include Cisco … Read more

Public Storage Receives Interest from Activist Investor

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Image Shown: A look at Public Storage’s geographical footprint at the end of 2019, keeping in mind some of these properties are owned by its strategic partners. Image Source: Public Storage – 2019 Annual Report By Callum Turcan We are big fans of the self-storage industry and include Public Storage (PSA) in our High Yield Dividend Newsletter portfolio. One of the greatest things about Public Storage is the ability for this self-storage real estate investment trust (‘REIT’) to generate sizable positive free cash flows, a rarity in the REIT world. We have covered this dynamic in detail in the past (link here). Shares of PSA yield ~3.6% as of this writing and we see room for significant payout growth over … Read more

Public Storage Continues to Shine

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Image Shown: Shares of Public Storage have recovered from the depths of the COVID-19 pandemic and have been on an upward climb over the past few months.   By Callum Turcan On November 4, Public Storage (PSA) reported earnings for the third quarter of 2020. As expected, headwinds created by the coronavirus (‘COVID-19’) pandemic weighed on its financial performance during this period; however, that did not stop the self-storage real estate investment trust (‘REIT’) from being very free cash flow positive. The long-term outlook for the self-storage industry in metropolitan areas in the US and elsewhere remains quite promising given the desire for households to maximize living space within their housing unit at a given budget. We include shares of … Read more

CubeSmart Is One of Our Favorite REITs

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Image Source: CubeSmart – October 2020 Deluxe Storage Transaction IR Presentation By Callum Turcan On November 5, the self-storage real estate investment trust (‘REIT’) CubeSmart (CUBE) reported third quarter earnings for 2020 that missed consensus top-line estimates but beat consensus funds from operations (‘FFO’) estimates. The REIT’s financial performance has taken a hit from the ongoing coronavirus (‘COVID-19’) pandemic, though CubeSmart adjusted by launching its contactless online rental program SmartRental back in April. Furthermore, after suspending its normal schedule for rental rate increases earlier this year, CubeSmart resumed those increases in June and July. CubeSmart has also since resumed its normal delinquency process, on a jurisdiction by jurisdiction basis. We include shares of CubeSmart as a holding in our High … Read more

Public Storage Rebounds and Its Financials Remain Strong

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Image Shown: Shares of Public Storage have recovered a considerable amount of lost ground since the pandemic-induced drop in March 2020. We continue to like Public Storage as a holding in our High Yield Dividend Newsletter and are big fans of self-storage companies with significant exposure to the US. By Callum Turcan The self-storage real estate investment trust (‘REIT’) Public Storage (PSA) is included as a holding in our High Yield Dividend Newsletter portfolio. We strongly appreciate its free cash flows, which are relatively rare in the REIT industry given that the growth-related capital expenditures of most REIT’s tend to be enormous. Shares of PSA have rebounded strongly off their March 2020 lows and yield ~3.6% as of this writing. … Read more

CubeSmart Remains Rock-Solid

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Image Shown: An overview of CubeSmart’s core geographical focus. We continue to like CubeSmart as a holding in our High Yield Dividend Newsletter portfolio. Image Source: CubeSmart – September 2020 IR Presentation By Callum Turcan One of our favorite industries as it relates to locating high-quality high-yielding companies with promising dividend growth runways is the self-storage real estate investment trust (‘REIT’) space, particularly companies with operations primarily (if not entirely) in the US. Within this industry, CubeSmart (CUBE) is one of our favorites and remains a holding in our High Yield Dividend Newsletter portfolio. Shares of CUBE yield ~4.0% as of this writing. The self-storage REIT continued to make good on its dividend obligations during the initial stages of the … Read more

CubeSmart’s Financial Flexibility Will Come In Handy

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Image Source: CubeSmart – March 2020 Investor Presentation By Callum Turcan On May 7, High Yield Dividend Newsletter portfolio holding CubeSmart (CUBE)–5.0% yield–reported first-quarter 2020 earnings. The company pulled its full-year guidance for 2020 given the uncertainties caused by the ongoing coronavirus (‘COVID-19’) pandemic. We appreciate that the self-storage real estate investment trust (‘REIT’) remained comfortably free cash flow positive last quarter, which is one of the reasons why we like CubeSmart as a high yielding play in the REIT world. Quarterly Update As you can see in the upcoming graphic down below, one of the biggest operating expenses CubeSmart (and the self-storage REIT space at-large) faces is property taxes. Rising property values in major metropolitan areas in particular pushes … Read more