Paychex, Inc. (PAYX) is currently experiencing challenges because of the low interest rate environment and because its primary target market (small businesses with ~17 employees on average) has been hard hit because of COVID-19. I have mentioned in several previous articles that the valuation of many companies has become detached from the underlying fundamentals and [...]
I was recently asked to provide a guest post on the Value of Stocks website and selected Intact Financial Corporation as the company to cover. My article can be found here. I wish you much success on your journey to financial freedom. Thanks for reading! Note: I sincerely appreciate the time you took to read [...]
Broadridge Financial Solutions, Inc. (BR) is a capital light business in which ~65% of its revenue is recurring. It has a track record of generating strong Free Cash Flow (FCF) although the second half of the fiscal year is when BR generates the bulk of its annual FCF. The bulk of a BR investor's long-term [...]
We are currently witnessing an environment in which the valuation of many companies has become detached from the underlying fundamentals. Even if you invest in a high quality company it is important to remember that if you grossly overpay you are most likely to experience substandard investment returns. Although I have indicated in recent articles [...]
Becton, Dickinson and Company (BDX) released Q1 2021 results on February 4th in which FY2020 guidance was increased. BDX has reduced its debt to the extent where Moody's has raised the company's senior unsecured long-term debt rating to an investment grade level after it had been downgraded following two major acquisitions in 2015 and 2017. [...]
There are several reasons to like Lockheed Martin Corporation (LMT) as a long-term investment. The company is growing, it is consistently profitable, it generates strong free cash flow, it is aggressively repurchasing shares, it has an attractive dividend yield, and it is attractively valued. As a long-term investor I see much to like about LMT [...]
Nike, Inc. (NKE) is a wonderful company. Shares, however, currently appear to be richly valued. I wish to retain my shares in perpetuity, and therefore, am not prepared to sell my shares at a profit, crystalize my gains, and incur the related tax liability. I am, therefore, employing a conservative short-term out-of-the-money covered call option [...]
I view Chevron Corporation (CVX) as the premier major integrated oil and gas industry participant. CVX is certainly experiencing headwinds but the company has a strong balance sheet and is being well managed to weather the difficult business environment. I anticipate that CVX's share price will trade within a narrow range in the short-term and [...]
