Summary This CDK Global stock analysis is based on Q2 2017 results and its outlook for the remainder of fiscal 2017. CDK’s stock price has doubled to almost $64 since it was spun-off from ADP in 2014. CDK’s sub 1% dividend yield will not appeal to investors seeking income from their investments. CDK is expensive [...]
Summary This MasterCard (NYSE: MA) stock analysis is based on Q4 and FY 2016 results reported January 31, 2017. MA continues to perform well but lofty expectations resulted in a small pullback in the stock price. While MA's PE is just shy of 30, I am willing to pay up for high growth and will [...]
Summary This United Parcel Service stock analysis is based on Q4 and FY2016 results reported on January 31, 2017. UPS reported its results and the stock dropped roughly 8%. Results were impacted by a Mark-to-Market Pension Charge which resulted in EPS falling short of expectations. UPS continues to grow its business and FCF is still [...]
Summary This Colgate-Palmolive stock analysis is based on Q4 and FY2016 results and outlook for fiscal 2017 reported on January 27, 2017. Colgate reported its third year in a row of declining global sales. Diluted EPS, FCF, and NI increased relative to FY2015. Positive results are attributed to company initiatives and because FY2015 results were [...]
Over the years I have read articles which ask "Which is better? Automatic dividend reinvestment or cash?" I think both stategies are dependent on your personal preference and financial requirements. What might be an appropriate course of action for one investor may not be wise for another. Furthermore, one strategy may be appropriate during one [...]
Margin is a double edged sword. Your gains are magnified when the value of the related assets rise. Losses, however, are magnified when they decline. [...]
For the last several months I have become increasingly concerned that stock valuations are too high for many publicly listed companies on North American stock exchanges. In fact, the last time I made equity investments of any significance, valuations were much, much more favorable. I admit it has been increasingly frustrating to watch stock prices [...]
Summary This Canadian National Railway stock analysis is based on Q4 and FY2016 results and outlook for 2017 reported January 24, 2017. Revenue dropped but net income, operating income, and diluted EPS increased. Record Free Cash Flow (FCF) of $2.520B was reported which permitted the repurchase C$2B of shares vs. C$1.75B in 2015. The annual [...]
Summary This 3M stock analysis is based on Q4 and FY 2016 results and outlook for fiscal 2017 released January 24, 2017. 3M reported strong result in FY2016 thus enabling it to return $6.431B to shareholders via share repurchases or dividends. 3M has been taking advantage of favorable interest rates and has increased LTD from [...]
Summary This McDonald's stock analysis is based on Q4 and FY 2016 results and outlook for fiscal 2017 released January 23, 2017. McDonald’s FY2016 results reflect a drop in revenue but a corresponding larger drop in expenses. It has been repurchasing its share at a torrid pace using LTD under attractive terms. I am prepared [...]