About the portofolio:
To enter the Small/Mid-Cap Model Portfolio, a stock must
have a market capitalization of $4 billion or less, a 4-STARS
or 5-STARS ranking, and good long-term prospects in the
opinion of the S&P Capital IQ equity analyst who follows
it. S&P Capital IQ’s Senior Portfolio Group may replace any
stock in the portfolio with another stock at any time for
reasons that can include a downgrade in STARS ranking
or other factors, though a stock will not necessarily be
removed for changes to its market capitalization. This
portfolio was launched on May 23, 2003. From inception
through January 31, 2015, the portfolio rose at an average
annualized rate of 12.88% excluding dividends, compared
with 10.33% for its benchmark, the S&P Mid-Cap 400.
Well, one thing is quite evident ......... you have never owned a business and had to pay on a triple net lease.
Reading up on escalators might prove enlightening to you.
FYI: If there was not a $ 50M impairment charge for Monroe, that same amount of money would have equaled a 5 cent dividend increase per share ( 25% increase )
Of course if you believe an impairment of that amount will be made by the company each year and that none of the future purchases/leasebacks will be successful ................. then selling now would be a prudent decision.
However, not all stock holders are of that belief.
The current market cap is $ 3B and the underlying assets are over $ 4B - doesn't appear to be overvalued to these eyes.
The key to AMD's future success lies within heterogeneous computing and networking.
There is no question that Intel DOMINATES the x86 space, but as the performance levels of mobile devices becomes even greater due to the dominance of ARM Holdings RISC processors, the amount of data that will grow tremendously from these devices and the need for servers in cyberspace to store this data will grow proportionally.
While CISC processors dominate in PC shipments currently, the future will be a combination of RISC & CISC processors, not only in data servers, but PC's as well as the telcom network platforms that will interface with these more powerful mobile devices.
AMD is on record as stating they will be in 25% of data servers by 2019 with their RISC/CISC processors.
In 2010 Microsoft bought an ARM architectural license and in that time frame from then to now MSFT has developed the software for an ARM server using both 32 & 64 bit processors. Linaro, a company formed by ARM - which is now independent, was started to take fragmentation out of individual company's proprietary devices to allow for seamless interoperability.
With over 300M PC's sold yearly, mostly in the U.S. by Dell & HP, the future growth numbers will come out of China by Lenovo, who bought the IBM line years ago.
Recent buyout claims by China companies most likely will not occur for obvious reasons, but a cash infusion into AMD should not be ruled out.
The reason is simple. China wants to benefit from their country's growth in internet devices, whether wired or unwired, and will back their companies ( perhaps fastrack ) in this endeavor.
Time and consumer demand are the pull throughs that will make this occur - when is always the deciding factor in monetizing this upcoming event.