Burke Financial Strategies
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This is really 2 companies in one. One that he loves, and one that he doesn’t love so much. The one he loves is the timeshare business, a very profitable and stable business, where they build timeshares, and then sell them and collect the fees they are paid to maintain the properties. A very lucrative and steady business and one that benefits from the growth of Asians, especially those that are looking to invest money overseas. The other half of the business is a hotel business, and the reason the stock has been somewhat of a laggard this year. This has tremendous free cash flow yield of 9%, which he thinks is enough to sustain them. Dividend yield of 2.8%. (Analysts’ price target is $82.69.)
Markets. Lots of investors sold in May and went away or when Brexit happened, but a lot came back in. It is all about yield. People in Europe have been forced to pay to have their money invested. These investors are investing elsewhere, buying stocks just to get yield. He is afraid central banks will pull the rug out from under us. He is not focused on a rate hike so much as the rates themselves. European buyers are coming in and buying our treasuries. Pretty well fully invested but is avoiding high beta stocks. Sees opportunities in the utilities sector although it has no growth so he would not want to own it now. Oil stocks are cheap. They've rallied, but are well below their peaks. The financial sector is cheap and he likes it although it is high beta.
Markets. Lots of investors sold in May and went away or when Brexit happened, but a lot came back in. It is all about yield. People in Europe have been forced to pay to have their money invested. These investors are investing elsewhere, buying stocks just to get yield. He is afraid central banks will pull the rug out from under us. He is not focused on a rate hike so much as the rates themselves. European buyers are coming in and buying our treasuries. Pretty well fully invested but is avoiding high beta stocks. Sees opportunities in the utilities sector although it has no growth so he would not want to own it now. Oil stocks are cheap. They've rallied, but are well below their peaks. The financial sector is cheap and he likes it although it is high beta.
A Master Limited Partnership, meaning they pay no taxes. Cemetary business. Own it if you are income oriented, because it has a high dividend. It has not been a growth company, so he prefers higher income companies. Dividend growth is the surest way to make money. He prefers 3% dividend and 6%-8% earnings yield, expecting that some of that earnings would translate into dividend growth.
A Master Limited Partnership, meaning they pay no taxes. Cemetary business. Own it if you are income oriented, because it has a high dividend. It has not been a growth company, so he prefers higher income companies. Dividend growth is the surest way to make money. He prefers 3% dividend and 6%-8% earnings yield, expecting that some of that earnings would translate into dividend growth.
They make the machines that make semiconductors. It is a tough industry to follow. Don’t own second derivative companies like this one. At any given point in the cycle it could come down hard. You will lose a lot of money when this cycle comes to an end.
They make the machines that make semiconductors. It is a tough industry to follow. Don’t own second derivative companies like this one. At any given point in the cycle it could come down hard. You will lose a lot of money when this cycle comes to an end.
The founder is 93 years of age and is reluctant to give up control even though he is far from capable of running the company. If he passes on then you could make a lot of money in the company. It is a cheap stock.
The founder is 93 years of age and is reluctant to give up control even though he is far from capable of running the company. If he passes on then you could make a lot of money in the company. It is a cheap stock.
Sold off a lot. They have a trial going on with a lung cancer drug. This is the drug that caused them to do so well. This is an expensive drug stock and he would prefer to own cheaper ones. These companies are hard to dissect and value. The European companies are cheaper.
Sold off a lot. They have a trial going on with a lung cancer drug. This is the drug that caused them to do so well. This is an expensive drug stock and he would prefer to own cheaper ones. These companies are hard to dissect and value. The European companies are cheaper.
He argues all the time within his company about this. He doesn't like it while others like it because they are such an iconic company. They've been good about product innovation. Expensive considering profit margin. Watch iPhone sales in the fall.
He argues all the time within his company about this. He doesn't like it while others like it because they are such an iconic company. They've been good about product innovation. Expensive considering profit margin. Watch iPhone sales in the fall.
Largest pipeline operator in the US. He likes it in general. He is worried that they are only interested in growing the size of the company. He prefers others.
Largest pipeline operator in the US. He likes it in general. He is worried that they are only interested in growing the size of the company. He prefers others.
(Top Pick May 11/16, Up 9.12%) Consumer discretionary. There were fears that Netflix was the new model and so the stock was down. The content creators were still going to do fine. Great numbers and it should grow over the next couple of years at least 20%. PE is 10-15% below the market.
(Top Pick May 11/16, Up 9.12%) Consumer discretionary. There were fears that Netflix was the new model and so the stock was down. The content creators were still going to do fine. Great numbers and it should grow over the next couple of years at least 20%. PE is 10-15% below the market.
(Top Pick May 11/16, Up 0.91%) Speculators focused too much on the crude and the gasoline inventories. There is record short interest right now. You get a nice dividend. He discovered recently that published inventory levels are not always that accurate.
(Top Pick May 11/16, Up 0.91%) Speculators focused too much on the crude and the gasoline inventories. There is record short interest right now. You get a nice dividend. He discovered recently that published inventory levels are not always that accurate.
(Top Pick May 11/16, Up 2.68%) 3% dividend also. They benefit from rising rates but for the most part give out investment advice for fees. 9 % earnings growth.
(Top Pick May 11/16, Up 2.68%) 3% dividend also. They benefit from rising rates but for the most part give out investment advice for fees. 9 % earnings growth.
Spectra Energy Partners (SEP-N) or Spectra Energy (SE-N)? He likes both stocks. These MLP structures are quite complicated. There is generally the General Partner and a Limited Partner. In this one they are separate, and has SE as a general partner and SEP is the Master Limited Partnership. Being separate, the market prefers a company with enterprise products where they are rolled into one company, which it feels eliminates a conflict of interest. This one has outperformed SEP by quite a bit over the past year, so SEP is probably more of the bargain.
Spectra Energy Partners (SEP-N) or Spectra Energy (SE-N)? He likes both stocks. These MLP structures are quite complicated. There is generally the General Partner and a Limited Partner. In this one they are separate, and has SE as a general partner and SEP is the Master Limited Partnership. Being separate, the market prefers a company with enterprise products where they are rolled into one company, which it feels eliminates a conflict of interest. This one has outperformed SEP by quite a bit over the past year, so SEP is probably more of the bargain.
MCK-N vs. CAH-N. He likes them. Those running for election are talking limits of drug prices. He likes all but Cardinal health is the best.
MCK-N vs. CAH-N. He likes them. Those running for election are talking limits of drug prices. He likes all but Cardinal health is the best.
MCK-N vs. ABC-N. He likes both, but prefers Cardinal Health (CAH-N). Those running for election are talking limits of drug prices.
MCK-N vs. ABC-N. He likes both, but prefers Cardinal Health (CAH-N). Those running for election are talking limits of drug prices.
In the REIT sector, rather than retail. The market is looking for yield. He is worried about this because of Amazon and because REITs have had a lot of a run up.
In the REIT sector, rather than retail. The market is looking for yield. He is worried about this because of Amazon and because REITs have had a lot of a run up.
This is really 2 companies in one. One that he loves, and one that he doesn’t love so much. The one he loves is the timeshare business, a very profitable and stable business, where they build timeshares, and then sell them and collect the fees they are paid to maintain the properties. A very lucrative and steady business and one that benefits from the growth of Asians, especially those that are looking to invest money overseas. The other half of the business is a hotel business, and the reason the stock has been somewhat of a laggard this year. This has tremendous free cash flow yield of 9%, which he thinks is enough to sustain them. Dividend yield of 2.8%. (Analysts’ price target is $82.69.)