- Hormel held its Investor Day June 15, 2017 wherein it provided a great overview of the company`s growth opportunities.
- HRL`s long-term targets are 5% top-line growth, 10% bottom-line growth, and margins in the top quartile of its peers by 2020.
- It is one of a few companies which have increased the annual dividend for 50+ consecutive years thus placing it in the exclusive Dividend King group of companies.
- HRL`s stock price has retraced from a high set in August 2016. Current valuation levels are now reasonable.
I am constantly amazed at how so many people look for the quick and easy way to get rich without truly understanding both the RETURN and the RISK aspects of an investment opportunity. It doesn’t take long to perform a quick internet search to come up with examples of investors who overlooked the inherent risks of the investments they made because they focused on the “supposed” returns. Continue reading “Know The Investment Risks You Are Assuming”
Have you ever heard the term “Money is the root of all evil”? Ever notice the people with no money, little ambition, or little desire to become financially free are those who use this term? In my opinion the term “The love of money is the root of all evil” is more appropriate.
There is nothing wrong with making and having money as one of your key priorities in your life on the condition your relationship with family/friends does not suffer at the expense of creating wealth and your morals/ethics are not messed up. Think of it, if you are a genuinely good person don’t you think you can help a whole lot more people if you have money as opposed to being in a position where you are struggling to makes ends meet?
In this regard, I am providing the following list of wealth building habits that have worked for my wife and me. Continue reading “Millionaire Wealth Building Habits”
Inflation really impacts you so prepare yourself!
On June 14, 2017, US Federal Reserve Chairwoman Janet Yellen and all but one of her central bank colleagues voted to raise its benchmark federal-funds rate by a quarter percentage point to between 1% and 1.25% thus representing the 3rd increase in the past year and a half. (See Federal Reserve Press Release). In addition to lifting this key U.S. interest rate, the Fed laid out a plan to shrink its massive $4.5 TRILLION balance sheet starting “this year”.
- This Manulife Financial Corporation stock analysis is based on Q1 2017 results.
- Manulife is the largest life-insurance company in Canada and ranks among the top 5 globally.
- Manulife has either been a wonderful or a terrible investment with much dependent on when you acquired shares subsequent to it being demutualized in 1999.
- I suggest readers take a “pass” on Manulife. There are far better investment opportunities in the universe of publicly listed companies.
- This The J.M. Smucker stock analysis is based on Q4 and FY2017 results released June 8, 2017 and its 2018 forecast.
- I have been looking to increase my exposure in the Consumer sector and view the Non-Cyclical Consumer Goods space as one likely to experience a lower level of volatility.
- SJM has been on my radar but I have viewed the stock as overpriced. The price has retraced to a level where I now view SJM as fairly priced.
- It has been in business for 120 years, has several iconic brands in its portfolio, and meets my criteria for a company in which I want to invest for the long-term.
- SJM generates strong free cash flow which will enable management to deleverage while making astute “bolt-on” acquisitions thus resulting in strong stock price appreciation over the long-term.
Subsequent to the US Presidential election in early November 2016, I have become “uber cautious”. My rationale for becoming this way is that:
- Corporate debt levels are growing exponentially despite sputtering profit growth.
- High-yield debt with “thin compensation” relative to increasing risk of default.
- Political turmoil in various parts of the world appears to be escalating.
- Subprime auto-loan default rates in the US now match those seen just before the 2007-2009 recession.
- The number of retail outlets expected to close in 2017 will exceed that of 2008.
- Almost half of certain emerging-market debt (the sovereign and quasi-sovereign variety) is below investment grade.
- Canadians’ household debt (watch videos) at elevated levels.
- Consumer debt levels in the US rivals those just prior to the Financial Crisis in 2008.
- The quality of the leadership in Washington (not just at the Presidential level but his entire entourage). I suspect countless Americans who voted Trump into office held out hope that his “business prowess” would improve their lot. Had they read The Art of the Deal, a biography about Trump, they would have realized his “business prowess” is highly suspect. In my opinion, this man has few morals, is unethical, and is essentially a con artist. I recommend you listen to this 9 minute interview with The Art of the Deal ‘s “ghostwriter”.