Yesterday, I visited the Chris Spangle Show on the We Are Libertarians Network to discuss the Gamestop (GME) short squeeze, Robinhood keeping users from buying GME and related securities like Blackberry (BB), Bed Bath and Beyond (BBBY), and Nokia (NOK), what all this means for the market and the public, and how the government might intervene.
- Infrastructure operations can be a great source of income by moving people, dry goods, energy liquids, and other essentials.
- This fund provides a 5% yield from a global equity portfolio.
- Infrastructure can provide income from the energy sector with less exposure to commodity price volatility.
When you hear the word infrastructure, building roads, bridges, and tunnels might be the first thing to come to mind. Infrastructure can be so much more, and it can be a great source of steady cash flow. Continue reading…
- Transaction-free trading platforms can be a powerful tool for compounding dividend returns.
- Concentrating on undervalued stocks that pay high dividend yields and growing dividends can reap high returns.
- Straying into investments that are difficult to understand for the sake of diversification can be a drag on returns.
In the beginning of 2017, I set out to create a total return portfolio for my long-term savings. At that time, I had learned through self-study about value investing, high-yield dividend investing, and dividend growth investing. Seeking Alpha was a wonderful inspiration, as was Get Rich with Dividends by Marc Lichtenfeld and the wisdom of Warren Buffett.
What Seeking Alpha authors helped me realize is that dividend investing can be about much more than income. It is a powerful mechanism for compounding wealth. Continue reading…
My latest article for Seeking Alpha forecasts Nike, Inc.’s earnings and determines its intrinsic value.
- Nike is a strong brand showing consistent revenue growth and excellent financial health.
- Nike’s revenue and earnings outlook for the next 5 years shows a continued ability to generate superior growth and dominate the industry.
- An estimated intrinsic value for shares of Nike based on best- and worst-case scenarios for the company, industry, and economy.
In analyzing stock valuations, people often use the price-to-earnings ratio as a shortcut. The problem is, it is just that a shortcut. It is the stock price divided by the trailing 12 months’ earnings per share. It is a simple measurement of past performance in a complex system that cannot be reduced to one number. P/E is a screening tool at best. It does not tell us enough about the most important factors of stock ownership: future earnings and cash flows.
Nike (NKE) has a P/E ratio of around 65, so investors are currently paying 65 times the last 12 months’ earnings per share to buy the stock. If the last 12 months’ earnings per share were to continue indefinitely, it would take 65 years to make your money back. So, initially, Nike looks extremely expensive. Thankfully, the appropriate price of a stock is based on a lot more than current EPS. Let’s conduct a more detailed assessment of Nike’s current earnings and project its future earnings to get a more accurate assessment of Nike’s intrinsic value. Continue reading…