November 13, 2019 Groceries and e-commerce will be big drivers of Walmart's growth. Walmart's e-commerce sales grew 37% in the last quarter. Walmart is challenging Amazon Prime with a new delivery service. Walmart expects to offer same-day delivery from three times as many stores as Whole Foods. As competition from Amazon.com (AMZN) forces retail stores to close across the nation, Walmart (WMT) is challenging the Seattle behemoth at its own game, e-commerce, and succeeding. Year...
September 18, 2019 E-commerce is growing at a faster rate than traditional retail. Industrial REITS provides warehouses for e-commerce companies. E-commerce companies account for 20% to 30% of industrial leasing. Industrial REIT Prologis will grow as demand for e-commerce grows. The reason the place you buy retail goods is called a store is because that's where they store stuff. But, there's a paradigm shift occurring in the retail sector. Shoppers are moving online to places...
July 19, 2019 The payments industry is being driven by two trends: contactless credit cards and the move to a cashless society. MasterCard has been riding that wave to higher revenues and big gains in stock price. MasterCard's return on equity is four times that of Visa. Two merging trends, the increased use of contactless credit cards and the growing belief that society will become cashless, have propelled MasterCard's (MA) stock to new heights. The...
April 29, 2019 The Madison Square Garden Company plans to split in two. One unit, MSG Entertainment owns and runs venues, and produces shows. MSG Sports owns the New York Knicks and New York Rangers. The current valuation give no value to many of the assets. The spinoff will unlock value that could boost the stock by 13%. The New York Knicks may be perpetual losers, but the company that owns them, The Madison Square...
March 19, 2019 NextEra Energy has consistently outperformed the S&P 500 Index over the past decade. NextEra is up much more than the broad market benchmark over the past six months. Like all utilities, NextEra is a defensive stock, but it stands out for growing earnings and free cash flow. NextEra has increased dividend payouts on a yearly basis. When thinking about growth stocks, utilities are not at the top of the list. Think of...
Berkshire Hathaway is undervalued by 17% Berkshire owns Burlington Northern Santa Fe, the nation's largest railroad. BNSF will be a major driver of earnings. The stock should rise to $251 by 2020. I think Berkshire Hathaway's Class B stock (BRK.B) is undervalued and has the potential to rise 17% to $251 by 2020. Berkshire Hathaway has two classes of stock. The original A-shares (BRK.A), which closed at $320,000 a share on Sept. 28, and the...
August 16, 2018 The Financial Times says the new tech leaders are MAGA not FAANGs. Microsoft is turning into a services company, producing lots of cash flow. Apple is also turning into a services company, and is insanely cheap. Amazon.com continues to fire on all cylinder and throw off cash flow. With the recent blowups of Facebook and Netflix, the Financial Times said the stock market’s technology leaders are no longer the FAANGs, but have...
June 5, 2018 Hedge Fund Manager Says Apple Will Go To $300 Click here to read the story in Forbes.com.
May 31, 2018 China is the largest e-commerce market in the world. In April, American Express became one of the only U.S. companies to get permission to enter the Chinese financial services market. AmEx has a joint venture with China's fourth largest mobile payments provider, putting it in a great position to enter China's electronic payment market. The loosening of Dodd-Frank regulations will give AmEx a cash windfall, which can be spent on stock buybacks...
May 21, 2018 Phillips 66 is a great way to play the rising price of oil. The refining company can take advantage of the $8 differential between West Texas Intermediate crude oil and Brent crude. The company is a money printing machine. First-quarter earnings surged 86% beating analysts expectations. Shareholders are receiving the benefits. It's in the middle of a large share buyback program and the dividend was just hiked 14%. The price of oil...
