The dividend is troubling in itself because the company simply cannot afford it. The money would be better spent on expansion or better technology. Instead, it looks as if the company is trying to buy shareholders off with a high dividend.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
Local banks are usually small in size and as such, it is easy to develop a personal relationship with the bank if you choose to work with them. The interest rates charged by such banks, however, are usually high as they may not have diversified their sources of income and the interest rates charged on loans could be their only source of income.
Large banks, on the other hand, have branches across the country and even internationally. Such banks have favourable rates for their loans and if this is what you are looking for in a bank, such banks are perfect for you.Read more
Allstate faces an uncertain future because of a changing media and insurance landscape. A major challenge for the company in the years ahead will be maintaining brand recognition in a changing media environment.Read more
It goes without saying that Ford will be in a great position to buy up the remains of Tesla when it finally collapses.
Until then Ford and its competitors are enjoying some great auto sales. Americans purchased 17.4 million vehicles in November 2017, down slightly from 18.1 million in vehicles in October and 18.6 million in September, The Detroit Free Press reported.
More importantly, Ford’s sales rose by 6.7% in November while those at competitors fell. Fiat Chrysler’s (NYSE: FCAU) sales fell by 4% and General Motors’ (NYSE: GM) slid by 2.9%.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
Jeep is planning to bring out a plug-in hybrid version of its iconic Wrangler in 2020, The Free Press reported. The Wrangler is the basic four-wheel-drive Jeep modeled on the iconic off-road vehicle that served America’s military in three wars.
The Alphabet (NASDAQ: GOOG) alliance is vital to Chrysler’s future, because it provides access to autonomous vehicle technology, data, and expertise, without a lot of risks. Another alliance that Fiat Chrysler should seriously consider is one with Tesla Motors (NASDAQ: TSLA) which has vast amounts of expertise in electric and autonomous vehicle technology.Read more
The decision to buy 21st Century Fox (NYSE: FOX) will have many observers wondering if the Walt Disney Co. (NYSE: DIS) is making money. The financial data indicates Disney is making money, but it also shows why the company’s CEO Bob Iger wants Fox.Read more
Square has the ability to dramatically increase the amount of cash flowing through the till but a hard time maintaining that cash from operations. The danger here is that cash flow is not steady, which makes it hard to generate flow, or keep the moneyRead 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