Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
August 8, 2016

Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is going to be more of a somewhat stable profit and dividend payer. The drug companies all have phenomenal cash flows. To him, there are better places to look for value.

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Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is going to be more of a somewhat stable profit and dividend payer. The drug companies all have phenomenal cash flows. To him, there are better places to look for value.

DON'T BUY
DON'T BUY
August 8, 2016

Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is clearly going to be more of a cyclical business, tied to the economy. To him, there are better places to look for value.

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Glaxo Smith (GSK-N) or BMW (BMW-GR)? Two entirely different companies. A global drug company and an automobile company. This is clearly going to be more of a cyclical business, tied to the economy. To him, there are better places to look for value.

TOP PICK
TOP PICK
August 8, 2016

This has suffered along with all the global investment banks. They don’t have any serious regulatory issues, but are all suffering from low interest rates as well as regulatory oversight issues, having to pull capital out of trading businesses. The great news is that while everybody else is reducing exposure to trading businesses, this bank is not. There is going to be, and already is, a lot less competition in those trading businesses that they run so well and so shrewdly. Trading at about 10X earnings, a slight discount to tangible BV. Dividend yield of 1.6%.

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Goldman Sachs (GS-N)
August 8, 2016

This has suffered along with all the global investment banks. They don’t have any serious regulatory issues, but are all suffering from low interest rates as well as regulatory oversight issues, having to pull capital out of trading businesses. The great news is that while everybody else is reducing exposure to trading businesses, this bank is not. There is going to be, and already is, a lot less competition in those trading businesses that they run so well and so shrewdly. Trading at about 10X earnings, a slight discount to tangible BV. Dividend yield of 1.6%.

TOP PICK
TOP PICK
August 8, 2016

Finally spun off its lighting business into an IPO, called Philips Lighting. They own 75%, and got a great price for it. The lighting business accounts for about $3 per share of the value of the stock. They also got about $750 million from the IPO. They are now really a medical technology company, and are in some great niches that are growing. In fact, earnings growth for the next 3 years should be in a 10%-20% level, probably closer to 20%. Has not been well-managed in the past, but as a medical technology device business, they are incredibly well positioned. #1 globally in several of their areas. They will be cleaning up their balance sheet and probably making some more bolt-on acquisitions. Dividend yield of 3.36%.

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Finally spun off its lighting business into an IPO, called Philips Lighting. They own 75%, and got a great price for it. The lighting business accounts for about $3 per share of the value of the stock. They also got about $750 million from the IPO. They are now really a medical technology company, and are in some great niches that are growing. In fact, earnings growth for the next 3 years should be in a 10%-20% level, probably closer to 20%. Has not been well-managed in the past, but as a medical technology device business, they are incredibly well positioned. #1 globally in several of their areas. They will be cleaning up their balance sheet and probably making some more bolt-on acquisitions. Dividend yield of 3.36%.

TOP PICK
TOP PICK
August 8, 2016

A 75-year-old Japanese company that is the best in the world in some very niche electronic component businesses, like specialized sensors. Like so many Japanese companies, it is trading for basically it’s working capital. You are basically getting the entire business for free. It has no debt. Dividend yield of 3.49%.

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A 75-year-old Japanese company that is the best in the world in some very niche electronic component businesses, like specialized sensors. Like so many Japanese companies, it is trading for basically it’s working capital. You are basically getting the entire business for free. It has no debt. Dividend yield of 3.49%.