Re: Unique financial nuggets
Sat wsj zweig
Europe looking interesting. Stay away from south Europe. But Germany France look good. Mutual funds hold banks with exposure to s Europe. So buy individual stocks article says. ( I disagree)
Companies with high dividend and strong balance sheet recommended. ( well this should hold true in any market!).
One unique nugget -
Re: Unique financial nuggets
Companies for whom cost to protect 10000 dollars bonds is < $90- about same as insuring German govt bond. For example. Unilever 3.7 pct yield and $32 to protect 10000 in bonds. Novartis 4.6% $39. Siemens 4.6 $88.
Nice list I might add.
As always do your own homework and invest for long term. Never buy stocks unless you know what you are doing.
Re: Unique financial nuggets
Never buy stocks unless you know what you are doing.
Re: Unique financial nuggets
Sat may 19 wsj
Stocks with high free cash flow yield have high upside potential.
Stocks whose bonds yield less than their dividends have high upside potential. In other words ones with rock solid balance sheet.
My two praise - combination of above two would be more better
Re: Unique financial nuggets
Gold has returned 470 % since 2000 while gold mining stocks returned 233%. Several pundits have been suggesting move into these stocks such as newmont mining goldcorp barrick gold. Not so fast says wsj June 4 issue.
Re: Unique financial nuggets
Yes higher gold price have increased margins tron 12% to 43% in ten years. The above companies and newcrest mining had $47.5b operating cash flow the last 10 years. But their Capex spending was $43.5 b.
They also spent $19b in acquisition and gave $6 b in dividends. So spent $68.5 billion vs $47.5 b cashvflow!
So how did they raise the additional cash?
Re: Unique financial nuggets
Their share count jumped 117% in the last decade. Shareholder dilution. What is to like? The experts wont let you in on this secret.
So go to pay attention to free cash flow - opt cash floe - capex. And to share count. And of course to balance sheet among other metrics. Dig under the hood.
Re: Unique financial nuggets
The readers of this column inquired about the ousting of barrick gold Ceo Regent. They wanted to know if this event is a related to the recent posts. I am glad you asked.
Re: Unique financial nuggets
As discussed earlier the mining companies outspent their cash flow with capex dividends. They also increased share count.
Barrick did one better - or worse. They bought equinox minerals a copper mining company when Cu price was at its peak. Noe Cu has fallen 30%. Barricks share count rose 25% and debt percshsre balloned to 10.6 $ from 3.5$
Hope this addressed hour concerns. Glad to help.
Re: Unique financial nuggets
This has been a tough couple of weeks for our dedicated staff. First there were rumors (totally unfounded) that Interactivity is virtually non- existent. But we have demonstrated an acceptable annual response rate of 12. Second the morale of the staff nosedived when the work was compared with CNBC. But the staff has come back stronger and more boring than ever. Please stay tuned for the latest on low US Treasury rates
Re: Unique financial nuggets
wow. Uncle in action 
Re: Unique financial nuggets
It is Saturday again. Today's wsj zweig
So why are us treasury yields so low? In the past majority owners were private investers. They would sell if overpriced and buy if underpriced. Of late a new class of investors have arrived - they buy irrespective of price.
Foreign holders -mainly central banks - own 34% of treasury debt. 10 yrs ago it was 18%. The Federal Reserve holds 11% - up from 5% in 2008! Treasury's are priced like " fire insurance" after a fire!
Re: Unique financial nuggets
In addition the derivative market is a mind boggling 700 TRILLION MARKET! under a new law buyers and sellers will have to post collateral. 0.2% equals 1.4 TRILLION DOLLARS if us treasury used as collateral. So zweig claims this will keep price higher of treasuries.
My opinion - why would investors post treasuries as collateral? Knowing they could drop in price. Why not pick cold hard cash.
IMO as treasuries get bid up in prices pundits offering new explanations to justify bubble. I like Jason zweig though.
Re: Unique financial nuggets
Fri June 15 wsj foreign investment in US surges. $29 billion invested jan-mar - 12 consecutive quarters of growth. This include acquisitions and real estate but not purchase of us treasuries and other securities. Last year $235 billion invested -14% increase over prev yr. 2/3 from Europe. In 2012 so far:
Nestle paid $12b for pfizer nutrn unit. Sap $4.3 for ariba
ABB $4b for Thomas and bett
So us bring viewed as safe harbor
My view- more value in europe
Re: Unique financial nuggets
The Sunday junex17 Consuelo mack show featured Richard Bernstein and bill wilby. One of the best shows I have seen. Richard emphasized ling term meant 10-12 years. Short term time frame for him is 2-3 years.
Check out wealthtrack.com and click on archives I thinkbto find junex17 show. Gives one an excellent perspective and allow one to not be free of daily noise (including the useless nugget thread)
Next week the guest is touted as a Contrarian. Show is available next Monday in the internets. Those in US can watch on Tv at ur local Pbs station at 1030am I think on silunday
Re: Unique financial nuggets
Sat June 23 ssj
BRIC have sunk a lot. Look cheap based on profits and dividend yield. Have seen outflows 43 of 52 weeks.
Classic example of valuation matters. Investors piled onto Bric funds 2009 and 2010 seduced by emerging market growth. Now they are leaving in droves as growth slows.
So if growth story long term is in tact as Brics fall in price they get more attractive.
Personally India market still much higher than 8000 sensex set a few years ago.
Re: Unique financial nuggets
Brics. P/e 8.9 div yld 3.6% us 13.8 and 2.3% respectively.
As always intent is not to goad folks to trade short term. Just pointing out potential inflection points.
Re: Unique financial nuggets
Our office has been inundated with suggestions that Brit we should state c stands for Brazil Russia India china
Re: Unique financial nuggets
Sat Jun 30 WSJ
Earnings pre-announcement is underway. Sehshrysh earlier had pointed out stock (near term) discount expectations. And if they beat them they rally. And fall if they underwhelm expectations.
Since June beginning guidance has been bad per Goldman Sachs. Companies have "given new earnings guidance 2-20%below analysts" predictions. Median was -4%.
So short term at least per this hypothesis some pain expected. Mytake invest constant amt each month. Pay no attention to swings.
Re: Unique financial nuggets
Our office has been inundated with suggestions that Brit we should state c stands for Brazil Russia India china
Wanted to clarify there is no office no staff - no readers have. Been contacting our office - 1) no readers 2) no office.
I was trying to poke fun at myself - for inability to get participation.
It appears GS management is none too happy with this approach ( and I have no complaints - this is their forum and I am glad to be a guest)
Hope this clears things up.