I periodically employ a conservative 'out of the money covered call' option strategy when I think I can generate some option premium income and I have a strong probability of retaining the underlying security. Within the last few months I have written articles in which I have disclosed that I have initiated short-term out-of-the-money covered [...]
Summary ITW released Q4 and FY2018 results and FY2019 guidance on February 1, 2019 and held its Investor Day on December 7, 2018. Excluding a one-time $0.658B charge associated with the passage of the ‘Tax Cuts and Jobs Act’ in FY2017, ITW grew EPS by 15%, expanded operating margin by 60 bps to a record [...]
Summary ADP reported Q2 2019 results on January 30th and raised its guidance for the remainder of FY2019. ADP continues to richly reward shareholders but shares appear to be overvalued. I plan to employ the conservative option strategy I successfully used in November 2018 to enhance my investment returns. Introduction Following Automatic Data Processing’s (NADAQ: [...]
Summary UPS reported Q4 and FY2018 results on January 31, 2019 and provided guidance for FY2019. In FY2018, UPS generated $6.1B of Free Cash Flow, reinvested $6.6B into its global network, and returned $4.2B to shareowners through $1B in share repurchases and $3.2B in dividends. In September 2018 UPS held its 2018 Transformation Conference in [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
