Use access key #2 to skip to page content.

April 2010

Recs

2

Compass Minerals still going strong, too

April 28, 2010 – Comments (0) | RELATED TICKERS: CMP

Compass Minerals is down by over 3% today on news that its costs were going up, that it had a strike at its major salt mine in Goderich, Ontario and that winter weather was weak.  [more]

Recs

1

Western Union still going strong

April 27, 2010 – Comments (0) | RELATED TICKERS: WU

Western Union's results apparently pleased the market enough that the stock is up 6% when the S&P was down by over 2%. Aside from the US, all the company's operating regions saw growth, especially Asia. If economic growth returns to normal in the developed world, WU will thrive. While the US-Mexico business will be important for a long time, the firm has a long growth trajectory. Operating margins have remained above 20% even during the recession.  [more]

Recs

2

Berkshire, derivatives and financial reform

April 27, 2010 – Comments (2)

It appears that Berkshire Hathaway has been lobbying for an exemption from proposed laws that would standardize derivative contracts and require parties to post collateral - they argued that existing derivatives contracts should be exempted. Berkshire would have to post up to $8 billion.  [more]

Recs

0

Genzyme is still going strong

April 24, 2010 – Comments (0) | RELATED TICKERS: GENZ.DL

The FDA released a proposed consent decree for Genzyme with a $175 million payment. This is fair. It's a large amount of money, but it's hardly crippling to the company. It's also worrying that its flagship products, Fabrazyme and Cerezyme, are experiencing supply shortages. But again, this is hardly crippling.  [more]

Recs

2

Goodbye, American Express

April 23, 2010 – Comments (0) | RELATED TICKERS: AXP

I just sold out of American Express. I was way early in this stock - I started buying it in the low $50s. I did keep buying it on the way down, for a total cost basis around $47 or $48. I actually came out very slightly ahead. I continue to think that Amex has a wide moat, but I don't think consumer spending will improve to the go-go days for quite some time. Amex definitely got ahead of itself and compromised its credit quality by moving downmarket to middle-class consumers, and this did hurt them in the crash. I used to think the stock was worth around $70, but I've reconsidered - its intrinsic worth is probably in the mid $50s. Given that there are other undervalued stocks like Lowe's, Abbott Labs, Apollo Group and Exelon, I'd rather put my money elsewhere.  [more]

Recs

0

Big banks indicate that credit quality is improving

April 21, 2010 – Comments (0) | RELATED TICKERS: AXP , USB

Several of the big banks recently reported earnings, and their investment bank performance eclipsed the issue that consumer credit quality is improving, both in terms of mortgages and credit cards. While the housing market could yet take a turn for the worse when the homebuyer credit ends, this would suggest to me that the American consumer is making a slow but steady comeback. American Express is due to report earnings tomorrow, and I expect that they too will report improvement, just as they did in the last quarter.  [more]

Recs

4

WSJ article on investors flocking to MLPs

April 12, 2010 – Comments (1) | RELATED TICKERS: EPE.DL2 , ETE

The Wall Street Journal had a recent article on how investors are flocking to Master Limited Partnerships. MLPs typically deal with natural resources, like gathering and processing and gas and/or oil pipelines. They're structured similarly with REITs in that they owe no corporate income tax but must pay most of their cash flows as distributions; additionally, they issue K-1 forms that are somewhat complicated at tax time (it's not a big problem if you use tax filing software; I use H&R Block).  [more]

Recs

0

Comments on Westar Energy: a solid utility pick in an uncertain environment

April 08, 2010 – Comments (0) | RELATED TICKERS: WR , MO

Westar Energy is a utility that supplies Kansas. I know, this is boring even for a utility, but there are several factors the market is overlooking. This makes the stock underpriced and a good long-term hold.  [more]

Recs

1

Realty Income Inc on a tear

April 07, 2010 – Comments (2) | RELATED TICKERS: O

As far as income stocks go, Realty Income (O) has been on a bit of a tear. The stock is at a nearly all time high of $31.66. I'd eyed this stock for quite some time before finally getting the opportunity to buy it in 2008 and 2009 under $25 a share. At those prices, the yield was a handsome 7%. Right now, I'm getting 5.5%.  [more]

Featured Broker Partners


Advertisement