General Electric – Selling Shares as Part of My RRSP Meltdown Strategy

Summary

  • GE released Q3 result on October 20th which fell far short of expectations.
  • The new Chairman and CEO and his senior leadership team are undertaking a rigorous analysis of all areas of the business in order to make major an urgent changes.
  • GE’s new cash flow from operating activities projection is $7B, a steep drop from the company’s previous view of $12B-$14B.
  • The ability to service the existing dividend, pensions, and capital investments is in jeopardy. GE has previously cut its dividend and another dividend cut is not beyond the total realm of possibility.
  • I am selling our GE shares as part of our Registered Retirement Savings Plan meltdown strategy.

Continue reading “General Electric – Selling Shares as Part of My RRSP Meltdown Strategy”

The RRSP Retirement Account Meltdown Strategy

This post appeared as a guest post at Sure Dividend on October 7th, 2017.

Recently I discussed my wife’s and my journey to financial freedom. I explained that we had diligently saved and invested in an effort to step away from the “rat race” earlier than most people.

In my recent Brookfield Asset Management – Calling All Long Term Investors post, however, I expressed concern about having accumulated too much money in tax advantaged accounts. Continue reading “The RRSP Retirement Account Meltdown Strategy”

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.

Continue reading “Genuine Parts Company Stock Analysis – View the Pullback as a Buying Opportunity”

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.

Continue reading “Canadian Pacific Railway Stock Analysis – More Upside Potential”

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.

Continue reading “Constellation Brands Stock Analysis – I Like the Company But Not the Valuation”

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.

Continue reading “I Applaud J.P. Morgan Analyst For Downgrading 3M”

My Recent Article 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 back burner. As a result, I only have one article for your reading pleasure which was recently posted on the Sure Dividend blog.

This post is a Q&A where I touch upon how we achieved financial freedom well before the typical retirement age bracket (mid 60s). It certainly helps when you make absolutely no investing related mistakes during your entire life. As you may suspect, there is a HUGE element of sarcasm when I say this. I am here to offer you hope! 🙂

I wish all fellow Canadian residents a wonderful Thanksgiving weekend and much success on your journey to financial freedom!

Thanks for reading.

My Amazon picks.