Genuine Parts Company Stock Analysis – View the Pullback as a Buying Opportunity

Summary

  • GPC released Q3 results below expectations on October 19 which has resulted in a ~8.5% drop in stock price.
  • Two additional bolt-on acquisitions were announced October 19 with closings to occur November 1. No definitive closing date has been revealed regarding the acquisition of Europe’s Alliance Automotive Group.
  • GPC, established 1928, has previously successfully navigated challenging competitive conditions. Management is taking steps to expedite corrective action.
  • Industry dynamics presents an opportunity in that GPC is likely to be a consolidator of smaller competitors.
  • Amazon’s expansion into GPC’s automotive parts segment will appeal to the DIY/consumer market (25% of GPC’s business in that segment). Amazon is unlikely to be able to adequately service the commercial segment.

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Canadian Pacific Railway Stock Analysis – More Upside Potential

Summary

  • Canadian Pacific released its Q3 results on October 17. Despite the ~5% stock price increase subsequent to the earnings announcement, CP remains an attractive long-term investment.
  • Adjusted diluted EPS grew 6% to $2.90. CP has revised adjusted diluted EPS upwards to double-digit growth versus high single-digit growth from full year 2016 adjusted diluted EPS of $10.29.
  • Free Cash Flow for the 9 months of FY2016 and FY2017 amounted to $0.488B and $0.575B.
  • CP has recently expanded its geographic coverage through a new partnership with Genesee & Wyoming Inc.
  • CP has various expansion projects in the works and technological enhancements being implemented to improve efficiency levels.

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Constellation Brands Stock Analysis – I Like the Company But Not the Valuation

Summary

  • This Constellation Brands Stock Analysis is based on Q2 2018 results released October 5, 2017.
  • Constellation Brands has certainly rewarded long-time shareholders.
  • As an investor who currently has no position in the company I view the current valuation to be too rich to initiate a position.
  • The company released its Q2 2018 results at the beginning of October 2017. FCF projections and the current number of shares outstanding suggest the Share Price/FCF ratio is well above historical levels.
  • We are several years into a bull market. I suspect many investors have never experienced a dramatic market correction subsequent to becoming a self-directed investor.
  • Complacency appears to be the mindset of many an investor. I suspect geopolitical risks of the like we have not experienced in many years are being taken lightly.

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I Applaud J.P. Morgan Analyst For Downgrading 3M

Summary

  • JP Morgan’s analyst downgraded 3M to “Sell’ In September 2017. Some investors voiced their displeasure on blogs and message boards.
  • In a January 2017 post I indicated I thought MMM was expensive. The price has just ratcheted up subsequent to that post.
  • I am cautiously optimistic JP Morgan’s analyst’s call will be correct and the stock price will drop.

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My Recent Articles Posted on the Sure Dividend Blog

This is Thanksgiving weekend in Canada so I am somewhat pre-occupied with activities which have relegated work on my blog to the backburner. As a result, I only have a couple of articles for your reading pleasure which were recently posted on the Sure Dividend blog. Continue reading “My Recent Articles Posted on the Sure Dividend Blog”

Sure Dividend Blog – The Investor’s Toolbox: How To Analyze Financial Statements

I thought I would take a moment to bring to your attention the recent launch of The Investor’s Toolbox: How To Analyze Financial Statements. This is a wonderful online course by Sure Dividend. This course is not tailored for individuals who are pursuing their Chartered Financial Analyst (CFA) designation or who are enrolled in a Master of Business Administration (MBA) program. Rather, it has been created for individuals who wish to take control of their own investment decisions but who may require some education on how to properly read/analyze financial statements. Continue reading “Sure Dividend Blog – The Investor’s Toolbox: How To Analyze Financial Statements”

Charitable Donations – How to Make Donations in Kind

In December 2016 I wrote a post about How to Obtain Information on the Financial Transparency and Operating Efficiency of Canadian and US Charities. In this post I touch upon “donations in kind” and in particular the donation of shares in companies listed on a major stock exchange.

The definition of a “Share” can be found on the Canada Revenue Agency’s website.

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