Thus Trump can destroy the Kansas City Southern or damage its operations severely. Plus, Trump could quickly sink the KSU’s stock price because I base the railroad’s value on its cross-border operations.Read more
Thus there are gold miners losing money right now. Yet the potential for profit is there; for instance, Newmont records a gross profit of $731 million for 3rd Quarter 2018.Read more
Thus, Fiat Chrysler Automobiles has created a platform for autonomous driving technology.
Obviously, other self-driving vehicle systems can use Chrysler‘s platform. Examples of such systems include the Apple Car and NVIDIA’s Drive processor for autonomous vehicles.
Tellingly, neither Apple (NASDAQ: AAPL) or NVIDIA (NASDAQ: NVDA) owns a car factory. On the other hand, Fiat Chrysler Automobiles owns auto factories in Europe, China, North America, and elsewhere.
Therefore, Fiat Chrysler Automobiles (FCAU) could be a value investment for autonomous vehicles.Read more
BestBuy (BBY) needs more partnerships because it is not making that much money.
For instance, BestBuy recorded an operating income of $335 million and a net income of $244 million for 3rd Quarter 2018. However BestBuy recorded a gross profit of $2.229 billion on revenues of $9.379 billion for the same period.
Beyond that BestBuy reported an operating cash flow of $904 million, an investing cash flow of $127 million, and a free cash flow of $710 million in 3rd Quarter 2018. Thus, BestBuy has a cash rich business.
On the other hand, BestBuy needs to keep more of that cash. The partnerships are important because they could give BestBuy more cash flow without costly expansion.
You can think the NAMPOF of as a FANG for value investors. Holdings in NAMPOF are more diversified than FANG and some of them generate dividend income.
It diversifies NAMPOF because NVIDIA and Apple are hardware makers and PayPal is in finance. FANG scares me because it is almost all software based. Something I dislike about FANG is the lack of a financial stock.
Containing six stocks further diversifies. Four NAMPOF stocks; Apple, NVIDIA, Oracle, and Microsoft, are proven moneymakers.
I consider PayPal and Facebook speculative because they base their businesses on growth. However, both companies have showed the capability to generate vast amounts of cash.
I designed the NAMPOF to offer a little more than safety and income than FANG at a comparable rate of growth.Read more
Verizon is a classic value stock for another reason – it is neither sexy nor popular. Even though almost everybody uses its products, few of them think about Verizon.
That keeps the stock price low, and shields the company from media attention. Verizon is definitely a stock for you if you hate drama.
Most importantly, Verizon has a very lucrative business that is not going away. Americans love their smartphones; because of that simple fact, Verizon is most definitely a value investment for today.Read more
By then TJX will be America’s dominant department store and a pretty good value investment. The experience at TJX proves that retail apocalypse is actually good for some brands. One has to wonder why more retailers are not copying TJX’s business model of deep discounting, and taking over from dying competitors.Read more
Buffett loves to invest in “toll-booth companies;” such as Coke and Pepsi, that control the gateway to an industry. A gateway company does not have to worry about next-generation competitors; because it can simply charge them a toll, if they want to sell through its market channels.Read more
Currently, I’m leery of both UPS and FedEx because of the danger they are in, in a changing retail market. Threats to these companies abound from both new businesses and new technologies.Read more
The Republicans efforts at “tax reform” are likely to make the tax code even more confusing and cumbersome, creating more demand for Intuit’s tax-preparation software. That means Intuit will end up selling more copies of Turbo Tax and Quick Books next year.Read more