Home » Archives for January 2018

Stanley Black & Decker – Another Great Company That is Overvalued

Summary Stanley Black & Decker has grown dramatically in recent years through a strategy of organic growth and acquisition. It possesses a portfolio of well known brands and its two most significant recent acquisitions are Newell Brands and Craftsman. It is one of a handful of companies which has increased its dividend uninterrupted annually for [...]

By |January 31st, 2018|Equity Investing|Comments Off on Stanley Black & Decker – Another Great Company That is Overvalued

United Technologies – I Will Patiently Wait for a Pullback

Summary Rockwell Collins recently approved its $30B takeover by United Technologies. The transaction is expected to close later in 2018. The acquisition is a shrewd move although United Technologies appears to be paying slightly more than full price. The recently introduced US tax changes will enable United Technologies to repatriate funds held overseas which will [...]

By |January 30th, 2018|Equity Investing|Comments Off on United Technologies – I Will Patiently Wait for a Pullback

Union Pacific – I Am Buying After Recent Pullback

Summary UNP is North America’s largest publicly traded railroad. Its extensive rail network places it in an advantageous position. It continues to make progress in reducing its Operating Ratio (OR). In FY2017 its OR was 63%. Its 2019 target is ~60%. UNP rewarded shareholders with dividend payments and share repurchases totalling $5.995B in 2017. I [...]

By |January 30th, 2018|Equity Investing|Comments Off on Union Pacific – I Am Buying After Recent Pullback

CN Rail – Attractive Given Recent Pullback and Dividend Increase

Summary On January 23, 2018, CNR reported diluted EPS of C$7.24 for 2017, up 55% over 2016 diluted EPS of C$4.67 and adjusted diluted EPS of C$4.99, up 9% over 2016 adjusted diluted EPS of C$4.59. Q4 results were impacted by challenging operating conditions, including harsh early winter weather across the network which increased the [...]

By |January 29th, 2018|Equity Investing|Comments Off on CN Rail – Attractive Given Recent Pullback and Dividend Increase

Bank of New York Mellon – High Entry Barriers Work In Its Favor

Summary BK is one of the 10 largest asset managers in the world on the basis of assets under management (AUM). Technology spend is significant in order to remain at the forefront of the industry. This makes it difficult for smaller competitors to compete directly with BK in certain lines of business. BK’s earnings should [...]

By |January 21st, 2018|Equity Investing|Comments Off on Bank of New York Mellon – High Entry Barriers Work In Its Favor

Fastenal Company – Too Expensive at the Moment

Summary Fastenal reported Q4 and FY2017 results on January 17, 2017 reflecting double-digit sales and pre-tax earnings growth for the year. This is a very shareholder friendly company. FAST is aggressively growing its Onsite business in an effort to reduce rent related expenses. I intend to acquire FAST shares but am being cautious given current [...]

By |January 19th, 2018|General Investing|Comments Off on Fastenal Company – Too Expensive at the Moment

Becton Dickinson – Be Aware of the Elevated Risk in this Great Company

Summary Becton Dickinson closed the acquisition of CR Bard on December 29, 2017 thus resulting in projected FY2018 annual revenue of ~$16B versus ~$12B in FY2017. The company’s risk profile has changed dramatically as a result of the debt taken on to acquire CareFusion and CR Bard. Debt is now non-investment grade-speculative and lower medium [...]

By |January 10th, 2018|Equity Investing|Comments Off on Becton Dickinson – Be Aware of the Elevated Risk in this Great Company

Staying Motivated on the Journey to Financial Freedom

This post is a follow up to my recent Tips On Your Journey To Financial Freedom article. Unless you come into sudden wealth (eg. inheritance, lottery winnings), the journey will likely be lengthy and the manner in which you acquire your wealth may be varied. Not only will the manner in which you acquire your [...]

By |January 9th, 2018|General Investing|Comments Off on Staying Motivated on the Journey to Financial Freedom