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Ideas and Strategies on Investing.

Previous Articles

Chevron

5/30/2017

0 Comments

 
Chevron Corp is Big Oil. Very Big Integrated Oil. It's a multinational energy corporation and one of the successor companies of Standard Oil. It's headquartered in San Ramon, California, and active in more than 180 countries all around the world. The Company is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production, refining, marketing and transport, chemicals manufacturing and sales, and power generation.

The Company's downstream operations manufacture and sell fuels, lubricants, additives and petrochemicals. It's
 alternative energy operations include geothermal, solar, wind power, biofuel, fuel cells, and   hydrogen. It's most significant operations are in the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South Africa.
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Chevron Corporation engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, and fuel and lubricant additives, as well as plastics for industrial uses. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. Further, the company holds interests in power plants, as well as operates geothermal plants; and engages in the transportation of refined products primarily in the coastal waters of the United States. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.
(Summary) (Company) (Chart)
29 May 2017
Price $
1yr Target $
Analysts 
Dividend $
Payout Ratio %

1yr Cap Gain %
Yield %
1yr Tot Return %

P/E 
PEG 
Beta 

EPS (ttm) $
EPS next yr $
Forward P/E 
EPS next 5yr %
1yr Price Support $

Market Cap $ Bil
Revenues $ Bil
Earnings $ Mil
Profit Margin %

Quick Ratio 
Current Ratio 
Debt/Equity 

1yr RevGR %
3yr RevGR %
5yr RevGR %

1yr EarnGR %
3yr EarnGR %
5yr EarnGR %

1yr DivGR %
3yr DivGR %
5yr DivGR %

ROA %
ROE %

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Chevron Monthly Chart
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Chevron Dividend History
It's easy to see on any price chart that oil has been under significant pressure for at least the last two years. It all seemed to start when technology was developed to fracture the oil deposits in such a manner that new deposits of oil could be brought to the surface cheaply. Out of fear of losing control of the oil markets, the OPEC nations dropped the price of oil and cratered the sector. Fracking companies hooked on expansion and credit were soon destroyed and the price of oil stabilized. Today it's starting to creep back up and is now expected to remain between $40 and $60 per barrel for many years into the future. 

Today oil companies are adjusting to the new equilibrium and are cutting costs to survive and excel in this new paradigm. The stocks are also carving out new support and resistance levels in which to operate. For Chevron, it now looks like the company is finding support near $100 per share. I also expect it to find moderate resistance near $120 per share and then again near $130 per share.

This is now setting up a nice win-loss ratio where it becomes beneficial to enter into, or add to, a position in Chevron. At about $105 per share, there's the possibility of losing $5 per share or making $15 per share at the first resistance level for a 3/1 ratio. If held through that there's potential for a $25 per share at the second resistance level for a 5/1 ratio. All this while collecting a dividend yielding over 4%.

Based on screens I've been doing it's beginning to be apparent that the entire Energy Sector may be looking up over the next couple of years. This may just be the time to add to my Chevron holdings. 
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0 Comments

Microsoft

5/24/2017

0 Comments

 
No one should need an explanation of who or what Microsoft Corporation is, but for the one or two people who have been living on an island in the south pacific somewhere, here goes.

Microsoft Corporation is an American 
multinational technology company headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Its best known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Edge web browsers.

​Its flagship hardware products are the 
Xbox video game consoles and the Microsoft Surface tablet lineup. As of 2016, it is the world's largest software maker by revenue, and one of the world's most valuable companies.
​

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​Microsoft Corporation
, a technology company, develops, licenses, and supports software products, services, and devices worldwide. The company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, and Skype, as well as related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform with computing, networking, storage, database, and management services; and enterprise services, such as Premier Support and Microsoft Consulting that assist in developing, deploying, and managing Microsoft server and desktop solutions, as well as provide training and certification to developers and IT professionals on Microsoft products. The company's More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system, as well as patent licensing, Windows Embedded, MSN display advertising, and Windows Phone licensing system; devices, including Microsoft Surface, phones, and PC accessories; and search advertising, including Bing and Bing Ads. This segment also provides gaming platforms, including Xbox hardware, Xbox Live, video games, and third-party video games. The company markets and distributes its products through original equipment manufacturers (OEM), distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.
(Summary) (Company) (Chart)
21 May 2017
Price $67.69
1yr Target $74.13
Analysts 32
Dividend $1.56
Payout Ratio 68.72%

1yr Cap Gain 9.51%
Yield 2.30%
1yr Tot Return 11.81%

P/E 29.85
PEG 3.19
Beta 1.00


EPS (ttm) $2.27
EPS next yr $3.32
Forward P/E 20.39
EPS next 5yr 9.35%
1yr Price Support $31.04

Market Cap $522.76 Bil
Revenues $87.25 Bil
Earnings $17.81 Mil
Profit Margin 20.41%

Quick Ratio 2.80
Current Ratio 2.80
Debt/Equity 1.20


1yr RevGR -8.83%
3yr RevGR 3.07%
5yr RevGR 4.05%

1yr EarnGR 41.89%
3yr EarnGR -6.57%
5yr EarnGR -4.84%

1yr DivGR 16.12%
3yr DivGR 15.93%
5yr DivGR 17.60%

ROA 8.30%
ROE 25.40%


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Microsoft Monthly Chart
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Microsoft Dividend History

My Strategy Going Forward

While Microsoft isn't a Dividend Aristocrat, it's been delivering an increasing dividend for about 12 years now and that's a pretty significant achievement. It's also one of the pillars of the computer industry and belongs in most Dividend Growth Investors portfolios. 

Microsoft Corporation's stock isn't cheap, but it usually isn't. I've owned shares of this company for a very long time and I add to that position whenever the stock is on sale or when their outlook brightens. Recently things have brightened, in a weird sort of way. Leaked computer viruses by the Federal Government's Intelligence Agencies are causing more and more companies and individuals to upgrade their operating systems and application software. That's got to be a boom to software sales.

The Company is expanding in other areas too. The Surface Pro continues to sell well and the Company has taken the largest share of the game console market. The future continues to look bright for Microsoft and the dividend is growing at a very fast pace. 

I plan to continue to grow my position in these shares because I just don't see an end to this story. It just keeps getting better.
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Momo

5/22/2017

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Chinese technology stocks have become so mainstream within the vast and growing population of China that even someone as US centric as me has to finally start paying attention to, and investing in, them. And so I have. 

Momo is a location based mobile social networking and entertainment platform launched in August, 2011. Momo enables users to connect with each other in a personal and lively way through short-form videos and live streaming. Users can check out people nearby and discover nearby groups, message boards as well as events. An enriched conversation experience allows users to send out their geographical locations as well as emojis during chat.


Momo was founded by Mr. Yan Tang. All co-founders and senior team members are alumni of China’s top internet companies such as NetEase, Phoenix New Media and Sina.
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​Momo Inc. operates as a mobile-based social networking platform in the People's Republic of China. The company's platform includes its Momo mobile application and various related features, functionalities, tools, and services that are provided to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations and interests; and Hani, a live video application. The company also offers games, which are designed with various themes, cultural characteristics, and features to appeal to various segments of the game player community; paid emoticons, and mobile marketing services; and live video, value-added, and other services. The company was formerly known as Momo Technology Company Limited and changed its name to Momo Inc. Momo Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
(Summary) (Company) (Chart)
21 May 2017
Price $43.58
1yr Target $41.46
Analysts 12
Dividend ---
Payout Ratio ---

1yr Cap Gain -4.87%
Yield ---
1yr Tot Return -4.87%

P/E 61.55
PEG 0.89
Beta ---


EPS (ttm) $0.71
EPS next yr $1.94
Forward P/E 22.42
EPS next 5yr 69.20%
1yr Price Support $134.24

Market Cap $8.11 Bil
Revenues $553.10 Mil
Earnings $145.30 Mil
Profit Margin 26.27%

Quick Ratio 5.40
Current Ratio 5.40
Debt/Equity 0.00


1yr RevGR ---
3yr RevGR ---
5yr RevGR ---

1yr EarnGR ---
3yr EarnGR ---
5yr EarnGR ---

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 22.60%
ROE 26.80%


​Corporate History

2011
  • Launched our first iOS version in August
  • Launched our first Android version in December

2012

  • 22.50 Million Registered Users
  • Awarded with the " Most buzzed mobile app in China " in February
  • Added our Location-based nearby groups function in October
  • Our B round of investment closed at a valuation of USD 100 million
  • Editor' s Choice for Top 20 Apps in Apple App Store

2013

  • 84.23 Million Registered Users
  • Added nearby message board and friends' feed function in January
  • Added premium membership service and sticker shop in June
  • Launched Windows Phone version in September
  • Launched our first in-app game in November

2014
  • Added short video and ephemeral image function in March
  • Launched our fourth in-app game in April
  • In December 2014, Momo had 69.3 million MAUs
  • Momo Inc. (Nasdaq: MOMO) commenced on The Nasdaq Stock Market on December 11

2015
  • Added Gifting Service in January
  • Launched the first in-house-developed game Momo Xiong Xiong Xiao in February
  • In March 2015, Momo had 78.1 million MAUs

2016
  • March. Launch of Hani live streaming app
  • April. Launch of Momo’s in-app live streaming feature
  • August. Launch of Momo’s in-app short-form video feature “Moments”

​2017
  • January. Held Momo Live 2017 Annual Celebration at the renowned Beijing National Aquatics Centre (“Water Cube”)
  • March. Release of Momo Fourth Quarter Financial Results. Highlight: MAU (“Monthly active uses”) of Momo has reached 81.1 million by December 31, 2016

​My Strategy Going Forward


Investing in foreign stocks can always be tricky because extensive information is not always available and if it is, it's usually difficult to find. So finding the right company can often be a very difficult endeavor. So often in these cases I'm very reliant on information provided in articles written by others who have a first hand knowledge of the product, services or management team. And that's not always a very comfortable position to be in. At least for me.

So in these cases, I'm forced to rely more heavily on the technicals for clues on when to trade these stocks. For me, the chart of MOMO looks historically great and I'm a firm believer in inertia in investing. The stock has been rising for quite a long time so I've decided to invest a very small portion of my funds into these shares. 

In investments like this, however, I'm forced to monitor the chart more closely simply because of the shortage of fundamental information available. I also have to monitor the news associated with this company more closely. 

All in all, foreign companies are more difficult to invest in primarily because of the difference in the time zones. Often they're trading when most people here are asleep. As the world becomes more and more of a continuous trading pool things may change but today this is a serious consideration when investing in foreign shares. 

That said, I do already have a small investment in this company and expect to continue to add to this position as long as the technicals indicate an upward movement. 

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0 Comments

Big 5 Sporting Goods

5/18/2017

2 Comments

 
Big 5 Sporting Goods is a sporting goods retailer headquartered in El Segundo, California with 420 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. It operates in a fragmented industry but it operates in an area in which the world in infatuated with. Unfortunately it also operates in a very competitive environment but with 420 stores it's not a small company and therefore is able to compete with the bigger chains.

The Big 5 name is derived from its start in 1955 as five Army-Navy surplus stores in Southern California. In 1988, Sportswest and Sportsland were acquired from Pay 'n Save.
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​Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure; and licensed trademarks, including Beach Feet, Bearpaw, Body Glove, Morrow, and The Realm. As of January 1, 2017, it operated 432 stores and an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.
​(Summary) (Company) (Chart)
14 May 2017
Price $13.80
1yr Target $17.60
Analysts 5
Dividend $0.60
Payout Ratio 56.07%

1yr Cap Gain 27.53%
Yield 4.34%
1yr Tot Return 31.87%

P/E 12.91
PEG 0.86
Beta 0.01


EPS (ttm) $1.07
EPS next yr $1.27
Forward P/E 10.89
EPS next 5yr 15.00%
1yr Price Support $19.05

Market Cap $314.64 Mil
Revenues $1.04 Bil
Earnings $23.30 Mil
Profit Margin 2.21%

Quick Ratio 0.20
Current Ratio 1.90
Debt/Equity 0.12


1yr RevGR -0.78%
3yr RevGR 0.92%
5yr RevGR 2.50%

1yr EarnGR 10.00%
3yr EarnGR -15.23%
5yr EarnGR 7.75%

1yr DivGR 31.25%
3yr DivGR 9.38%
5yr DivGR 11.84%

ROA 5.40%
ROE 11.60%


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Big 5 Sporting Goods Monthly Chart
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Big 5 Sporting Goods Dividend History

History

  • 1955: Big 5 is founded operating as "Big 5 Stores", under the original corporate name United Merchandising Corp.
  • 1963: Trade name is changed to "Big 5 Sporting Goods" as the chain specializes in sporting goods
  • 1971: Thrifty Drug Stores acquires Big 5 Sporting Goods
  • 1992: Big 5 is acquired in a management-led buyout financed by Leonard Green & Partners
  • 1997: The Company is recapitalized, with majority ownership passing to employees
  • 2002: Big 5 goes public
  • 2010: Big 5 turns 55

Big 5 Founded in 1955. Big 5 was founded in September 1955 by Maurie I. Liff, Harry A. Liff and Robert W. Miller, father of current Chief Executive Officer (CEO) Steven G. Miller. The Company originally operated five stores in downtown Los Angeles, Burbank, Inglewood, Glendale, and San Jose, California under the trade name "Big 5 Stores."

During the early years, Big 5 concentrated on World War II army surplus items, as well as tents and air mattresses the Company manufactured itself, plus assorted house wares and hand tools. From the earliest days of the chain Big 5 used print advertisements. Consistently advertising on the back page of the main news section of the Los Angeles Times, customers grew accustomed to looking there for weekly specials. Sporting goods soon became part of the product mix, a natural for the highly active population of Southern California. In fact, sports merchandise became so popular that management decided to specialize in it, and in December, of 1963 the Company changed its trade name to "Big 5 Sporting Goods."

Thrifty Drug Stores Acquires Big 5 in 1971. By March 1971, Big 5 had grown to 19 stores, at which point the Company was acquired by Thrifty Drug Stores, the West Coast's largest chain of drug stores. Big 5 operated as a subsidiary of Thrifty for the next 21 years. With Robert Miller still leading the Company he helped found, Big 5 continued to prosper. By 1992, Big 5 had grown to 140 stores in California, Nevada, and Washington. To support the Company's growth, the company built a 440,000 square foot distribution center in Fontana, California that was twice the size of their previous facility.

Big 5 Is Acquired By Leonard Green & Partners in 1992. In 1992, Company management acquired Big 5 in conjunction with Leonard Green & Partners, a Los Angeles private equity firm. Robert Miller continued as CEO and Chairman of Big 5, while his son, Steven, was named President and Chief Operating Officer. During the first year following the change of ownership, Big 5 opened ten stores, followed by 15 in both 1993 and 1994, and 19 units in 1995. In the process of expansion, the chain entered the new markets of Arizona and Idaho in 1993, and New Mexico, Oregon, and Texas in 1995.

Management Acquires Controlling Stake in 1997. In November 1997, the Millers led a management effort to acquire a controlling interest in the company by raising $250 million. With this transaction, many of the chain's employees had a financial interest in the company and a renewed commitment to make Big 5 Sporting Goods prosper.

Big 5 Goes Public in 2002. In June 2002, Big 5 held an initial public offering (IPO), resulting in over $100 million being raised to finance future growth. Management planned to continue their strategy of controlled expansion, especially in markets beyond California. To accommodate this growth, in 2005 Big 5 opened a nearly one million square foot automated, state-of-the-art distribution center in Riverside, California. Today, Big 5 Sporting Goods continues to grow and prosper by maintaining their core strategy of providing convenient shopping and low prices.


My Strategy Going Forward

Although this is a highly competitive industry, the fact that Big 5 has been in business and successful for so many years tends to convince me that this company will be around for years. In addition, the company is in only 11 states so there's plenty of room for continual expansion. 

I have to admit that the fundamentals haven't always been the best and that has been reflected in the stock chart. But estimates going forward look a lot better so it comes down to whether its more prudent to project forward base on past performance or rely on the analysts expectations. Personally I wouldn't 100% of my trust in either one. But if the earnings estimation of 15% going forward is accurate and next year projected earnings is $1.27, then it's quite easy to see this stock rising to $19 per share next year. That would be an almost 38% gain in the next 12-18 months. 

Looking at the price chart it's also easy to see that Big 5 could be on the verge of making another run at its previous highs near $19 per share. That would be a triple high. Resistance would be expected to arrive as the stock approached that level so that might be a great area to take profits or sell options. Either way, there's a pretty good strategy based on the stock chart. 

With support just below $14 per share (about where it is now) and resistance near $19, there's little downside risk and the potential $5 gain. That's a area that could provide a nice return. 

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2 Comments

RCI Hospitality Holdings

5/16/2017

0 Comments

 
RCI Hospitality Holdings s an American operator of strip clubs, nightclubs, and adult entertainment websites founded in 1983. Based in Houston, Texas, the Company operates clubs under the names Rick's Cabaret, Jaguars Club, Club Onyx, Tootsie's Cabaret, Temptations Cabaret, Downtown Cabaret, Cabaret North, Cabaret East, Silver City, Vivid Cabaret, and XTC Cabaret. Nightclub & restaurant brands include Vee Lounge, Bombshells (an emerging breastaurant chain), and Ricky Bobby Sports Bar & Saloon. It also operates the websites NaughtyBids.com, an auction site; CouplesTouch.com, a dating site for swingers; and pornography website xxxpassword.com. The company's Media Group publishes the strip club trade publications Exotic Dancer and Club Bulletin, and operates 25 industry websites.
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​​RCI Hospitality Holdings, Inc.
 engages in the hospitality and related businesses in the United States. It operates in two segments, Nightclubs and Bombshells Restaurants/Sports Bars. The company owns and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Vivid Cabaret, Tootsie's Cabaret, Club Onyx, Jaguars Club, XTC Cabaret, Hoops Cabaret, Downtown Cabaret, Temptations, Silver City Cabaret, Foxy's Cabaret, Cabaret East, and The Seville brands. It also operates four restaurants/sports bars under the Bombshells brand; and a bar under the Studio 80 brand. As of December 13, 2016, the company operated 41 units that offers live adult entertainment, and/or restaurant and bar operations. In addition, it owns a national industry convention and tradeshow; 2 national industry trade publications; 2 national industry award shows; and approximately 25 industry Websites. The company was formerly known as Rick's Cabaret International, Inc. and changed its name to RCI Hospitality Holdings, Inc. in August 2014. RCI Hospitality Holdings, Inc. was founded in 1982 and is based in Houston, Texas.
(Summary) (Company) (Chart)
7 May 2017
Price $18.96
1yr Target $29.00
Analysts 2
Dividend $0.12
Payout Ratio 10.43%

1yr Cap Gain 52.95%
Yield 0.63%
1yr Tot Return53.58 %

P/E 16.47
PEG 0.41

Beta 0.32
EPS (ttm) $1.15
EPS next yr $1.70
Forward P/E 11.15
EPS next 5yr 40.00%
1yr Price Support $68.00

Market Cap $185.62 Mil
Revenues $135.10 Mil
Earnings $11.40 Mil
Profit Margin 8.43%

Quick Ratio 1.10
Current Ratio 1.20

Debt/Equity 0.82
1yr RevGR -0.44%
3yr RevGR 6.25%
5yr RevGR 10.06%

1yr EarnGR 22.22%
3yr EarnGR 4.59%
5yr EarnGR 6.84%

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 4.10%

ROE 8.90%
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RCI Hospitality Monthly Chart
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RCI Hospitality Dividend History

​My Strategy


I continually scan the markets for companies that are both improving their fundamentals and increasing their share price. And as I research the markets for these kinds of companies, I'm finding fewer and fewer that fit these conditions. One exception is RCI Hospitality Holdings. 

I own shares in this company and I have been a proponent of owning these shares primarily based upon an eventual expansion of their Bombshells Restaurants. For some time I've been buying shares anywhere above $16 per share and below $18 per share. It's now moved beyond that level which pains me but I still see this company as a winner going forward. Therefore, regretfully I'll continue to buy shares but I really wish it was still below $18. Unfortunately investors are starting to understand the story here and obviously they are pushing the shares higher. I believe shares of RCI Hospitality could easily move higher than $40 per share once the rollout begins. 

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0 Comments

Ryman Hospitality Properties

5/11/2017

0 Comments

 
Ryman Hospitality Properties is a hotel, resort, entertainment, and media company named after the National Historic Landmark - the Ryman Auditorium. The auditorium was originally built as a tabernacle by Captain Thomas G. Ryman in 1892 but later it became the home of the Grand Ole Opry (1943-1974).

Facilities currently owned and operated by Ryman Hospitality Properties include:
  • Grand Ole Opry
  • Ryman Auditorium
  • WSM, a Nashville radio station
Facilities owned by Ryman Hospitality Properties, but managed by Marriott International, include:
  • Gaylord Hotels
    • Gaylord Opryland Resort & Convention Center, in Nashville, Tennessee
    • Gaylord Palms Resort & Convention Center, near Orlando, Florida
    • Gaylord Texan Resort & Convention Center in Grapevine, Texas Dallas/Fort Worth area.
    • Gaylord National Resort & Convention Center, at National Harbor, Maryland
  • Gaylord Springs Golf Links
  • General Jackson Showboat
  • Inn at Opryland
  • Wildhorse Saloon
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​Ryman Hospitality Properties
owns and operates hotels in the United States. Its Hospitality segment operates a network of meetings-focused resorts, including the Gaylord Opryland Resort and Convention Center in Nashville, Tennessee; the Gaylord Opryland Resort and Convention Center in Kissimmee, Florida; the Gaylord Texan Resort and Convention Center in Grapevine, Texas; and the Gaylord National Resort and Convention Center in Prince George's County, Maryland. As of February 15, 2013, this segment's network of resorts had 7,797 rooms. It also owns and operates the Inn hotel with approximately 303 rooms at Opryland. The company's Opry and Attractions segment owns and operates Nashville-based tourist attractions, including the Grand Ole Opry, a live country music show; the Ryman Auditorium, a venue with approximately 2,300 seats for concerts and musical productions; the General Jackson Showboat, a 300-foot, four-deck paddle wheel showboat on the Cumberland river; the Gaylord Springs Golf Links, a clubhouse, which provides meeting space for approximately 500 guests; and the Wildhorse Saloon, a country music performance venue. This segment also operates WSM-AM, a radio broadcasting station. Ryman Hospitality Properties, Inc. qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ryman Hospitality Properties, Inc. was founded in 1955 and is headquartered in Nashville, Tennessee.
(Summary) (Company) (Chart)
9 May 2017
Price $61.99
1yr Target $65.38
Analysts 8
Dividend $3.20
Payout Ratio 99.07%

1yr Cap Gain 5.46%
Yield 5.16%
1yr Tot Return 10.62%

P/E 19.20
PEG 1.24
Beta 1.17


EPS (ttm) $3.23
EPS next yr $3.51
Forward P/E 17.68
EPS next 5yr 15.51%
1yr Price Support $54.44

Market Cap $3.14 Bil
Revenues $1.16 Bil
Earnings $165.60 Mil
Profit Margin 14.22%

Quick Ratio ---
Current Ratio ---
Debt/Equity 4.30


1yr RevGR 5.21%
3yr RevGR 6.32%
5yr RevGR 3.83%

1yr EarnGR 43.98%
3yr EarnGR 19.55%
5yr EarnGR 73.11%

1yr DivGR 11.11%
3yr DivGR 14.31%
5yr DivGR ---

ROA 6.90%
ROE 46.20%


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Ryman Hospitality Monthly Chart
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Ryman Hospitality Dividend History
My Strategy

My strategy for shares of Ryman Hospitality Properties is to continue to add to the position I already have during periods when the shares pullback in price. These shares are currently priced higher than I would like based on the estimated 5 year earnings projections, but they have been worth buying and holding in the past. These shares have been very good to me over the years and I expect the business will continue to increase well into the future. 

​Therefore, I will add to my position on any pullback closer to $60 per share while continuing to reinvest the dividends and any funds received from the sale of options. 
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0 Comments

Churchill Downs

5/10/2017

0 Comments

 
Churchill Downs Incorporated is the parent company of Churchill Downs. The company is best known for, and has evolved from, one racetrack in Louisville, Kentucky to a multi-state, publicly traded company with racetracks and casinos. It is also the leading online wagering company. That wagering part of the company is the part that's the fastest growing part of this successful businesses.
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​Churchill Downs
operates as a racing, gaming, and online entertainment company. It operates through Racing, Casinos, TwinSpires, Big Fish Games, and Other Investments segments. The company operates racing facilities, such as Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 10 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 12 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida. It also operates five casinos, which provides brick-and-mortar real-money casino gaming services with approximately 9,030 gaming positions; and operates 2 hotels. In addition, the company through TwinSpires.com operates mobile and online wagering business; and offers streaming video of live horse races, replays, and an assortment of racing and handicapping information. Further, it offers reports, statistical information, handicapping information, pedigrees, and other data for the thoroughbred horse industry. Additionally, the company produces and distributes social casino, casual and mid-core free-to-play, and premium paid games for PC, Mac, and mobile devices. It also manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses; and provides totalisator and Internet-based interactive gaming services, as well as operates a multimedia poker periodical. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky.
​(Summary) (Company) (Chart)
7 May 2017
Price $167.52
1yr Target $171.00
Analysts 3
Dividend $1.32
Payout Ratio 19.58%

1yr Cap Gain 2.07%
Yield 0.78%
1yr Tot Return 2.85%

P/E 24.86
PEG 2.07
Beta 0.84


EPS (ttm) $6.74
EPS next yr $7.49
Forward P/E 22.36
EPS next 5yr 12.00%
1yr Price Support $89.88

Market Cap $2.76 Bil
Revenues $1.30 Bil
Earnings $111.50 Mil
Profit Margin 8.53%

Quick Ratio 0.50
Current Ratio 0.50
Debt/Equity 1.41


1yr RevGR %
3yr RevGR %
5yr RevGR %

1yr EarnGR %
3yr EarnGR %
5yr EarnGR %

1yr DivGR %
3yr DivGR %
5yr DivGR %

ROA 5.00%
ROE 16.20%


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Churchill Downs Monthly Chart
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Churchill Downs Dividend History

​My Strategy

My strategy for shares of Churchill Downs is to continue to add to the position I already have during any pullback in the price of the shares. There's no doubt that these shares are expensive but they have been worth buying and holding in the past. These shares have been very good to me over the years and I expect they will continue to increase well into the future.

​Therefore, I will add to my position on any pullbacks while continuing to reinvest the dividends and any funds received from the sale of options. 
​
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Trinity Industries

5/8/2017

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Trinity Industries, Inc. is a diversified industrial company that owns complementary, market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group.

The Company's businesses play an important role in the overall economy by supplying essential, infrastructure-related products and services ranging from barges, storage and distribution containers, construction aggregates, and highway products to wind towers, utility structures, railcars, railcar parts, and railcar leasing, management, and maintenance services. 
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Trinity Industries, Inc. provides various products and services to the energy, chemical, agriculture, transportation, and construction sectors in the United States and internationally. Its Rail Group segment offers railcars, including autorack, box, covered hopper, gondola, intermodal, tank, and open hopper cars; and tank cars, as well as railcar maintenance services. This segment serves railroads, leasing companies, and industrial shippers of various products. The company's Railcar Leasing and Management Services Group segment leases tank and freight railcars to industrial shippers and railroads; and provides management, maintenance, and administrative services. As of December 31, 2016, this segment had a fleet of 85,110 owned or leased railcars. Its Construction Products Group segment offers highway products, such as guardrail, crash cushions, and other barriers; aggregates, including expanded shale and clay, crushed stone, sand and gravel, asphalt rock, and other products, as well as other steel products for infrastructure-related projects; and trench shields and shoring products for the construction industry. This segment offers aggregates to concrete producers; commercial, residential, and highway contractors; manufacturers of masonry products; and state and local municipalities. The company's Energy Equipment Group segment manufactures structural wind towers; utility steel structures for electricity transmission and distribution; storage and distribution containers; cryogenic tanks; and tank heads for pressure and non-pressure vessels. Its Inland Barge Group segment provides deck barges, and open or covered hopper barges to transport grain, coal, and aggregates; and tank barges to transport chemicals and various petroleum products, as well as fiberglass reinforced lift covers for grain barges. Trinity Industries, Inc. was founded in 1933 and is headquartered in Dallas, Texas.
(Summary) (Company) (Chart)
7 May 2017
Price $27.12
1yr Target $29.83
Analysts 6
Dividend $0.44
Payout Ratio %

1yr Cap Gain %
Yield %
1yr Tot Return %

P/E 14.20
PEG 1.42
Beta 2.20


EPS (ttm) $1.91
EPS next yr $1.11
Forward P/E 24.43
EPS next 5yr 10.00%
1yr Price Support $

Market Cap $4.12 Bil
Revenues $4.28 Bil
Earnings $284.40 Mil
Profit Margin %

Quick Ratio ---
Current Ratio ---
Debt/Equity 0.77


1yr RevGR %
3yr RevGR %
5yr RevGR %

1yr EarnGR %
3yr EarnGR %
5yr EarnGR %

1yr DivGR %
3yr DivGR %
5yr DivGR %

ROA 3.10%
ROE 7.30%


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Trinity Industries Monthly Chart
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Trinity Industries Dividend History
Trinity Industries (TRN) declares a $0.13/share quarterly dividend which is an 18.2% increase from its prior dividend of $0.11. The forward yield is now 1.92% and is payable on July 31 for shareholders of record July 14. The ex-div date is July 12.

​My Strategy


This would be a tough stock to own the last two years because the the stock it a high in 2014 of $45 per share and then spent the next year and a half loosing two thirds of its value. But on the way down it found support at $25 per share before falling to it ultimate low. Now, as it recovers, it's found resistance near $30 per share but support at the $25 level once again. That could be the key to the trade in this security. 

​What makes an investment in Trinity Industries for me most interesting is its increasing dividend. It's been increasing its dividend, with the exception of 2010, since 2004. That's a pretty good track record. Now that the dividend is $0.13 per quarter the dividend is approaching 2%. By buying shares as close as possible to $25 per share the yield rises to 2.08% which is a level that's quite acceptable to me. 

My strategy on these shares will be to sell puts with a strike price of $25. A beta of 2.20 will allow for a very nice return even if the puts are never exercised. Once ownership is taken, covered calls can easily be sold at a higher level for additional income. Done correctly these shares could produce a very nice return over time.

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Pepsico

5/3/2017

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Pepsico needs little introduction to most investors. It's one of those rock solid consumer companies that everyone has in their kitchen or pantry. But what most don't realize is that Pepsico is more than simply a beverage company. In fact, it's more of a snack food company than a beverage company and the majority of their profits come from the snack food business. 

With the markets at all time highs, it may just be time to load up on some of the consumer companies that tend to make money in good times and bad. If the markets and the economy does slow, it may be a good idea to be in companies like Pepsico.
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PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, granola, and oat squares; and Aunt Jemima mixes and syrups, Quaker Chewy granola bars, Cap'n Crunch cereal, Life cereal, and Rice-A-Roni side dishes. Its North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Tropicana Pure Premium, Mist Twst, and Mug brands; and ready-to-drink tea and coffee, and juices. The company's Latin America segment provides snack foods under the Doritos, Cheetos, Marias Gamesa, Ruffles, Emperador, Saladitas, Sabritas, Lay's, Rosquinhas Mabel, and Tostitos brands; cereals and snacks under the Quaker brand; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, 7UP, Gatorade, Toddy, Mirinda, Manzanita Sol, H2oh!, and Diet Pepsi brands. Its Europe Sub-Saharan Africa segment offers snack foods under the Lay's, Walkers, Doritos, Cheetos, and Ruffles brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods under the Pepsi, 7UP, Pepsi Max, Mirinda, Diet Pepsi, and Tropicana brands; ready-to-drink tea products; and dairy products under the Chudo, Agusha, and Domik v Derevne brands. The company's Asia, Middle East and North Africa segment provides snack foods under the Lay's, Kurkure, Chipsy, Doritos, Cheetos, and Crunchy brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina, and Tropicana brands; and tea products. The company was founded in 1898 and is headquartered in Purchase, New York.
(Summary) (Company) (Chart)
2 May 2017
Price $112.29
1yr Target $122.40
Analysts 20
Dividend $3.01
Payout Ratio 64.87%

1yr Cap Gain 9.00%
Yield 2.68%
1yr Tot Return 11.68%

P/E 24.22
PEG 3.78
Beta 0.60


EPS (ttm) $4.64
EPS next yr $5.55
Forward P/E 20.25
EPS next 5yr 6.41%
1yr Price Support $35.57

Market Cap $160.35 Bil
Revenues $62.99 Bil
Earnings $6.71 Bil
Profit Margin 10.65%

Quick Ratio 1.10
Current Ratio 1.30
Debt/Equity 3.30


1yr RevGR -0.41%
3yr RevGR -1.84%
5yr RevGR -1.14%

1yr EarnGR 18.80%
3yr EarnGR 0.30%
5yr EarnGR 1.58%

1yr DivGR 7.16%
3yr DivGR 9.38%
5yr DivGR 7.88%

ROA 9.10%
ROE 55.80%


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Pepsico Monthly Chart
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Pepsico Dividend History
PepsiCo (PEP) declares an $0.805/share quarterly dividend, which is a 7% increase from its prior dividend of $0.752. The forward yield is now 2.87%, payable June 30 for shareholders of record on June 2 Ex-dividend date is May 31.

My Path Forward

Pepsico may not have the most aggressive fundamentals but it does has a history of paying a very healthy and consistent dividend. And that's music to a Dividend Growth Investor like me. So my path forward seems obvious to me. I need to have a position in this company.  

Unfortunately this company never seems to be on sale so at some point, if I want to own it, I'll just have to ignore the P/E ratio and just buy the stock. On the other hand, there's really no compelling reason to buy the shares today so I'll instead wait for the best opportune time that I can find. For me that would be a price near its lower Bollinger Band or when the MACD is showing over sold but beginning to turn up. Today that means a price near $111 per share. 

While this would only be a small pullback, it would increase the one year capital gain to just above 10%. Add in the recently increased dividend yield of 2.87% and the one year estimated total return would be approximately 13%. That's a nice return for a consistent dividend grower. 

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    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


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