FedEx Stock Analysis – A Lesson in Long-Term versus Short-Term Thinking

Summary

  • This FedEx Stock Analysis is based on Q3 FY2016 financial results and outlook for the remainder of FY2017.
  • The integration of TNT is proceeding as planned but management has accelerated the implementation of activities which were to have taken place later in the integration process.
  • FedEx shares have increased dramatically in recent months but based on projected earnings they still offer some value.
  • I foolishly had short-term thinking when I first owned FDX in 1999. I do not intend to repeat the same mistake.

Continue reading “FedEx Stock Analysis – A Lesson in Long-Term versus Short-Term Thinking”

Kellogg Stock Analysis – An Overpriced Dividend Achiever

Summary

  • This Kellogg stock analysis is based Q4 and FY2016 results and forecast presented February 9, 2017 which reflects continued struggles.
  • It does not have an enviable Revenue, FCF, Gross and Operating margins, and Debt/Equity track record.
  • Kellogg has not had a wide economic moat for years.
  • Kellogg does not satisfy several of my Stock Picking Rules to Follow.

Continue reading “Kellogg Stock Analysis – An Overpriced Dividend Achiever”

Stock Picking Rules to Follow

I crafted the following list of stock picking rules to follow because selecting companies in which to invest can be a daunting undertaking.

There are so many companies from which to choose which is why it is wise to pay heed to what Warren Buffett wrote in the 1977 Berkshire Hathaway annual report. Berkshire Hathaway wants a business:

  • that we can understand;
  • with favorable long-term prospects;
  • operated by honest and competent people;
  • available at a very attractive price.

These rules address the four conditions Buffett mentioned. Continue reading “Stock Picking Rules to Follow”

Bank of New York Mellon Stock Analysis – Currently Too Expensive

Summary

  • This Bank of New York Mellon (NYSE: BK) stock analysis is based on Q4 and FY2016 results reported on January 19, 2017.
  • BK does not have a record of steadily increasing its dividends annually.
  • The number of shares outstanding as at FYE2016 exceeded that as at FYE2007!
  • Shares are currently overpriced. I would not consider acquiring additional shares unless they retraced to a level closer to $41.52.

Continue reading “Bank of New York Mellon Stock Analysis – Currently Too Expensive”

FFJ Portfolio February 2017 – Dividend Income Report

The purpose of this short post is to provide an update of the dividend income generated in the FFJ Portfolio during the month of February 2017. The total dividend income received was pretty meager but fortunately the vast majority of our investments are not held in this portfolio.

We generated CDN $152.15 from Smart REIT and USD $598.64 (after the 15% withholding tax) from AT&T, Verizon, and Colgate.

Year-to-date dividend income amounts to CDN $1,355.23 and USD $1,019.31.

Dividend income should pick up nicely in March. We will be receiving roughly CDN $450 from CNR, DH, and SRU.UN and USD $1,830 from CVX, JNJ, MMM, and XOM.

I have forecast our YTD dividend income at the end of March 2017. We should reach roughly CDN $1,805 and USD $2,849 which puts us on pace to exceed our FY2017 dividend income target of CDN $7,000 and USD $11,000.

Achieve Financial Freedom – Start By Asking Why and not How

The other day a reader asked me for some ideas as to how I go about selecting companies in which to invest. He had read other blogs which make extensive use of technical indicators and oscillators (Williams%R, MACD, Bollinger Bands, Stochastic Oscillator, etc.) and relied to a great extent on charting tools (SharpCharts, Point & Figure Charts, Candle Glance Charts, etc.). While he recognized these tools might work well for some investors, he acknowledged that his personality was such that he did not want to perform an indordinate amount of technical anlysis. Continue reading “Achieve Financial Freedom – Start By Asking Why and not How”

Wal-Mart Stock Analysis – Don’t Rule Out This Company

Summary

  • This Wal-Mart (NYSE: WMT) stock analysis is based on Q4 and FY2017 results released February 21, 2017.
  • WMT reported $4.38 Diluted EPS from continuing operations.
  • Total revenue of $485.9B increased 0.8% or 3.1% to $496.9B if currency adjustments are excluded.
  • Operating income decreased 5.6% to $22.8B or decreased 2.9% to $23.4B when currency adjustments are excluded.
  • $31.5B in operating cash flow and $6.2B in dividends and $8.3B in share repurchases.
  • WMT generated just under $21B in FCF!!!

Continue reading “Wal-Mart Stock Analysis – Don’t Rule Out This Company”