Summary Moody’s (MCO) and S&P Global Inc. (SPGI) command a ~80% market share of the ratings industry. I view these two companies much like I view the VISA and Mastercard oligopoly. MCO released less than stellar Q3 results on October 26th. Its share price has been taking a beating subsequent to the last week of [...]
Summary CNR released its Q3 results on October 23rd and reported quarterly revenue of $3.688B - the highest in its 99 year history. Net income was lower than in Q2 due to higher fuel prices, higher labour costs (increase in headcount and higher training costs for new employees), higher costs as a result of increased [...]
Summary While MMM reported Q3 results on October 23rd and revised FY2018 earnings downward, the revised FY2018 EPS projections are 11 % - 13% higher than FY2017 results. MMM will be holding its Investor Day on November 15th at which time management will lay out its 5-year plan and the framework for that plan. View [...]
Summary UTX released Q3 results on October 23 and provided an upward revision to its adjusted EPS for FY2018. The Rockwell Collins acquisition has received approval from the EU Commission and from the U.S. Department of Justice. The deal is currently under review in China and the acquisition is expected to close in 2 - [...]
Summary Following the 2017 Valspar acquisition, SHW is the leader in the highly fragmented coatings industry with the top 10 suppliers holding a ~55% market share. Goodwill and Intangible Assets now comprises over 64% of SHW’s Total Assets. SHW’s Long-Term Debt to EBITDA ratio upon completion of the Valspar acquisition rose to 4.5Xs. At its [...]
Summary Like the other BAM entities I have analyzed, BEP adheres to BAM’s 5 core principles. BEP has recently initiated a capital recycling program similar to other BAM entities in which it rotates its investment from mature assets with lower IRR potential to new opportunities in which it can generate superior returns. BEP’s current annual [...]
Summary BIP adheres to BAM’s 5 core principles and employs a capital recycling program in which it rotates its investment from mature assets with lower IRR potential to new opportunities in which it can generate superior returns. BIP’s capital allocation model has three priorities of which the 3rd is to distribute ~60 – 65% of [...]
Summary The BAM group of companies held their Investor Day on September 26th. BPY, the real estate arm within the BAM group of companies, operates and develops one of the largest portfolios of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage, student housing and manufactured housing assets. What sets BPY apart from most members [...]
Summary After the market closed on September 25th, NKE reported Q1 FY2019 results and its share price pulled back ~4% in afterhours trading. The share price rebounded to close down only 1.25% on September 26th. The Federal Reserve increased rates 25 basis points on September 26th and a further increase is anticipated in December. If [...]
Summary Korn/Ferry released Q1 results on September 6 and reported a loss of $0.70/share. This included a one-time $106.6 million trade name write-off which management had communicated in June 2018. Other than the one-time write-off, results were positive and I view the price plunge has having brought shares into fair value territory. I view KFY [...]
