I own a ton of the stock and bought every time it has tanked. The dividend is good and the current CEO has a plan to go national. I am in this for the long term. Just saying that there are too many things to go wrong in the short term. As a small cap stock that is thinly traded a few idiots can send this up or down pretty quick. i agree with the CEO. On one of his quarterly conference calls he was forecasting over $55 per share.
Most of the Starbucks I have seen are all in strip malls or inside other stores like Kroger, Target etc.
It also looks like some competing investments have been taking some of the money going into this space in the last 6 months. Notably MCD and PNRA have increased earnings and are beating the average Street estimates while SBUX is only making the estimate. When SBUX hit $64 it also became pricey compared to it's growth rate. The valuation looks more reasonable at $54. Over the last two years the stock tripled and needs to build a new base. It is an $80 billion company making it difficult to have those huge gains necessary to support a high PE.
Not if general market news is not good. In the January/February swoon the stock traded under $25 and was still under $28 when earnings were announced. We are too dependent on a federal reserve that has pretty much screwed up everything they have ever done for over 100 years. Janet Yellen is just as clueless as those who preceded her. They are a bunch of academics who belong to one school of economics or another and do not have the ability to change their thinking. Small cap stocks get hammered the worst in these idiot induced down turns. The only thing that helps is good earnings. Let us hope that when TIS reports for the 2nd quarter the rest of the market is not in a funk.
Lowe's Cos. LOW, +0.24% announced on Friday at its annual shareholders meeting that it is raising its dividend 25% to 35 cents per share. The dividend is payable on Aug. 3, 2016 to shareholders of record as of July 20, 2016. The company says it has declared a cash dividend ever year since going public in 1961.
They raised the dividend 7 cents per quarter. They must be confident in current and future business.
I would not worry about the debt since interest rates are lowest in 100 years. It is a pittance compared to the size of cash flow. The total dividend payout is only $1.25 billion while they are buying back an average of $3.5 billion in stock over at least the last 3 years.
He exercised and option. It was granted at around $20 and he simultaneously bought the stock and sold. Unless he was going to put up about $1 million to buy the shares and hold them. he already owns about 195,000 shares. Although not starving he isn't making the same kind of bucks as Wiseman and Salzburger. It is also not a capital gain so he makes the difference between $66 and $20 and then pays a ton of taxes all at the highest rates as regular income.
The Scabs are mangers from all over the company including the engineering force. They are all still there and will be there for the next strike.
I know you have followed this company for a long time. I sold all my shares a couple years back because i did not like a utility drilling for oil and gas. There are some businesses that utilities have no business getting involved in. I recently read that they finally realized that is true and they dumped all of the E&P properties.
My question: Is this now a buy. Both construction businesses should do well as the US needs to rebuild roads and the FERC has mandated the replacement of old gas mains. If you think it is a good investment at what price would you buy or add.
The interesting thing is that PEP's growth rate over 2016 & 2017 is an average of less than 6% while AMGN'S is over 8%. So you pay a multiple of 3.5X the growth in PEP but for AMGN only pay a multiple of less than 2X their growth rate. The growth rates calculated by using analysts" average earnings estimates for 2016 & 2017 and the actual results for 2015. In addition for the last 3 quarters AMGN has beat the estimates buy at least 30 cents per quarter. It looks like AMGN may be entering a new growth phase that takes earnings gains into the 10+ % range. This is a classic growth and income stock that is moderately priced. I have been buying!!
Sentiment: Strong Buy
I just created a 2 year chart of PSX vs. OXY and VLO. Over the last 2 years as oil dropped (as shown by OXY), PSX and VLO both rallied and did the best when oil was the lowest. I choose OXY because it is primarily a pure oil play and although they have cut CAPEX they have low debt, lots of cash flow and increasing volumes so it really defines what has happened to oil.
VLO is primarily a refiner/marketing company so you would expect it to be most sensitive to oil prices. PSX on the other hand has less than half of their investment in refining and even with marketing and lubricants is only a little more than 1/2 the business. Almost all of their CAPEX is going to midstream operations and of coursw they have 1/2 of CPChem. They also have commodity risk from the DCP partnership.
So for the most part as oil goes down refining margins go up plus the product is cheaper due to the commodity cost so consumers are willing to buy more.