Never trade on the headline news. It always come back to bite you in the #$%$. I see we were down about $3 out of the gate and are now up about $2.50. Someone threw away about $5.50. Wish i was that rich that I could throw away $5.50 per share.
The problem is not necessarily AMGN but the ETF's in which it resides and there are 21. Some are small however XLV (AMGN = 4.5%) trades over 12 million shares per day and IBB (AMGN = 8.3%) trades about 2.25 million per day. So when the market does not like biotechs or in some instances healthcare in general AMGN still gets the #$%$ kicked out of it by being in a bad neighborhood. In addition, this spooks others to dump the stock because they are unaware that the downturn does not necessarily reflect how investors think about AMGN as an individual stock. Only ETFs I have ever owned are commodities and currencies which allows you to trade them without having a commodities broker.
Agree. I am a customer of the gas distribution company. This is the perfect company in terms of growth because of the need to replace the pipes. The gas business is projected to be bigger than the electric (distribution + generation). They have also been building new houses again. Not at the pre-2008 rate but are filling in all the subdivisions that had lots left. Once that is done there is plenty of farmland close to the city. Indy is also a midwest hub for shipping (think distribution of on line purchases). New warehouses are being built all the time. Finally this is a takeover candidate. Duke has operations adjacent to VVC and might be interested into acquiring gas assets.
It was the second part of "The Trader" column". To summarize the stock was recommended in this column back in Sep 2015 and was a followup. Bank stocks generally down and BBT is boring but could still give a double digit return this year. BBT's business is doing well. Stock down on microeconomic concernes not the about BBT's business. $206M increase in energy related non performing loans however total energy loans are $1.6B out of $134B total loans. BBT just bought a bunch of banks while investors are disenchanted with M&A in banking. Management is committed to "peer leading" dividend so another increase in 3rd quarter is possible. The 2016 EPS estimate is $2.82 or a P/E of only 11.7 compared to historic 13 - 14. Conclusion: BB&T won't be a home run. But it's a Steady Eddie bank "that gives time to wory about your kids and lets you sleep at night" with an attractive income stream compared with alternative equities.
BB&T was also in the Research Reports section. FIG Partners expects shares to trade $39 - $40 in next 9 months. They think the stock could exceed that and they recommend further accumulation of shares by new and existing investors.
Sentiment: Strong Buy
SE has been hurt by a number of things. First being included in MLP's with a bunch of weak companies is a problem as is SEP which also trades with a bunch of losers and gets killed price wise due to association. Since a lot of the big capital budget is in the SEP ( MLP) it becomes difficult to raise capital especially SEP units. This puts the whole operation in a bind. Secondly there was a lot of problems with DCP midstream which has been now straightened out. As they complete projects we should see the price move back toward $40.
I am generally do interested in retail stocks but knowing about the boycott I thought i would see how TGT is doing. They are getting the you know what kicked out of them. The CEO is going to go down with the ship by not retracting the policy.
You are right I also did not sign but will never go there again. There is usually a multiplier effect to these boycotts so it could be as high as 10 million and probably centered in particular conservative area which can put individual store locations out of business. Their entire HQ segment will be chasing their tails trying to respond to these pockets of total discontent.
I looked back at the last few increase and it appears that the declaration date is the last Friday in May or the last business day in May so look for either May 27 or 31 for the announcement. As far as the amount the last two increase were 5 cents per so i look at that as a minimum. It also looks like the current dividend is about 35% of the 2016 earnings. Earnings estimate per LOW is $4.13 up from the analyst's consensus of $4.00. 35% of the new estimate is around 7 - 8 cents. I know they still want to buy back a lot of shares so it depends on how management wants to split return money to us. So look at 5 cents/quarter as a base case with 8 cents as a reach. My prediction is 7 cents/quarter which is a 25% increase. With housing stable, LOW expanding # of stores and a new emphasis on the Pro, I'll take a years worth of capital gains plus a nice dividend increase all year long.
Maybe if it was a utility but they are buying shares back to restrict the float. A split means you have 2 $40 dollar pieces of paper worth $80.
Earlier in the year MetLife predicted that due to the severity of the 2008 - 2009 financial crisis it would be 10 years or more for interest rates to get back to what one might consider normal. It is really the long rates that cause problems for utilities but those rates are not going to challenge utility returns, QE has never stopped because any bonds that were purchased by the FED that come due are rolled into more bonds plus all the interest. Besides the rest of the world has such low 10 year rates that foreigners will be also buying thus keeping rates low. There are too many alamists on Wall Street and most have no idea what they are doing.
30 minute presentation by D. N. Bible (CFO) on the company's investor website.
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.
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 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 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.
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.
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.
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.