Home » Archives for January 2019

CN Rail – Fairly Valued But I Think We Will Be Able To Do Better

Summary CNR has just released its Q4 and FY2018 results which reflect remarkable turnaround from early 2018. A ~18% increase in CNR’s quarterly dividend has just been announced together with details of a new normal course issuer bid. While CNR is already one of my largest holdings I am open to acquiring additional shares in [...]

By |January 31st, 2019|Equity Investing|Comments Off on CN Rail – Fairly Valued But I Think We Will Be Able To Do Better

3M – Wait For Another Dip

Summary MMM lowered its FY2018 EPS guidance when it released its Q3 2018 results in October. FY2019 EPS guidance provided at its November Investor Day been lowered to $10.45 - $10.90 which still represents a 17.5% - 22.6% YoY increase from the $8.89 earned in FY2018. The company consistently generates significant Free Cash Flow. Another [...]

By |January 31st, 2019|Equity Investing|Comments Off on 3M – Wait For Another Dip

W.W. Grainger – Patiently Waiting For Further Pullback

Summary GWW reported Q4 and FY2018 results on January 24th and it shares retraced ~11% from the previous day’s close. Many industrial companies to whom GWW supplies products have reported strong FY2018 results and are expecting to increase their revenue and earnings in 2019. Macro issues (trade tensions and tariffs) still exist and if the [...]

By |January 24th, 2019|Equity Investing|Comments Off on W.W. Grainger – Patiently Waiting For Further Pullback

United Technologies – Significant Transformation in Progress

Summary UTX released Q4 and FY2018 results on January 23 which exceeded analyst expectations thus resulting in a bump in UTX’s share price. While the total estimated cost of the Otis and Carrier spin-offs is significant, the long-term benefits should outweigh these one-time expenses. The Rockwell Automation acquisition closed November 2018. Integration is proceeding as [...]

By |January 23rd, 2019|Equity Investing|Comments Off on United Technologies – Significant Transformation in Progress

Stanley Black & Decker – Attractively Valued Following Pullback

Following the release of Stanley Black & Decker's (SWK) Q4 and FY2018 earnings on January 22, 2018, SWK's shares dropped ~15.5% in value. This drop is attributed to its FY2019 outlook being weaker than forecast. SWK has indicated it is extremely well positioned to hit its $22B revenue target by 2022; FY2018 revenue was just [...]

By |January 22nd, 2019|Equity Investing|Comments Off on Stanley Black & Decker – Attractively Valued Following Pullback

Goldman Sachs – Attractively Valued But Be Aware Of The $7.5B Risk

Summary GS is currently attractively valued but there is the $7.5B overhang the Malaysian government is seeking to recover from GS. Priorities are to focus on investments for growth, improve operating efficiency, and to enhance the durability of revenues and earnings. GS continues to shift its funding mix from unsecured long-term debt to deposits. The [...]

By |January 17th, 2019|Equity Investing|Comments Off on Goldman Sachs – Attractively Valued But Be Aware Of The $7.5B Risk

The Bank of New York Mellon Corporation – Think Buffett/Munger Are On To Something?

Summary BK’s Q4 and FY2018 results released January 16, 2019 reflected a mixed underlying performance. Revenue declined but BK maintained strong expense discipline and benefited from a lower tax rate. BK continues to reward shareholders with $3.3B in common shares repurchased and $1.1B in dividends distributed to common shareholders in FY2018. On December 10th, BK [...]

By |January 16th, 2019|Equity Investing|Comments Off on The Bank of New York Mellon Corporation – Think Buffett/Munger Are On To Something?

Constellation Brands – And This Is Supposed To Impress Me?

On January 9th, the day I posted my most recent article on Constellation Brands (STZ), the outgoing and incoming CEOs appeared on Mad Money following the release of a disappointing 2019 forecast. STZ's current CEO Rob Sands, who will step down in March, stated the response to his company's softer guidance is a "total overreaction" [...]

By |January 13th, 2019|Equity Investing|Comments Off on Constellation Brands – And This Is Supposed To Impress Me?

If It Looks Too Good To Be True It Probably Is

A recent article on a highly followed investor website suggests that two small cap TSX listed companies are appropriate investments for Tax Free Savings Accounts (TFSA). For long-term risk averse investors, neither company would be an appropriate investment. In this article I compare the extent to which both companies have rewarded shareholders with two extremely [...]

By |January 12th, 2019|Equity Investing|Comments Off on If It Looks Too Good To Be True It Probably Is

Constellation Brands – This Is What I Get For Speculating

Summary Constellation Brands (STZ) issued Q3 2019 results and provided lower guidance. Mr. Market did not react positively and STZ’s share price dropped ~12.40% on January 9th. In August 2018 when I purchased January 2019 2 Call $190 contracts I knew I was speculating. Those contracts are now of no value. With STZ’s superior valuation [...]

By |January 9th, 2019|Equity Investing|Comments Off on Constellation Brands – This Is What I Get For Speculating