Pat McKeough responds to many personal questions about specific stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve …read more »
BCE INC. $41.99 (Toronto symbol BCE; Shares outstanding: 774.6 million; Market cap: $32.5 billion; TSINetwork Rating: Above Average; Dividend yield: 5.4%; www.bce.ca) recently failed to win regulatory approval for its $3.4- billion deal to buy Astral Media (Toronto symbols ACM.A and ACM.B).
Montreal-based Astral owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as the …read more »
BAXTER INTERNATIONAL INC. (New York symbol BAX; www.baxter.com) makes medical products, such as intravenous pumps and kidney dialysis equipment. It also makes vaccines and drugs. Half of its sales come from single-use products that need to be continually reordered.
Demand for the company’s products continues to improve, particularly as an aging population needs more medical devices and drugs. Baxter’s sales rose …read more »
The Merriam-Webster dictionary defines jargon as the “technical terminology” of a special activity or group. But it also defines it as “confused unintelligible language.”
Every industry and group has its own special jargon. This specialized language always has the same purpose. It simplifies communications within the industry, and helps make insiders feel they are part of a tightly knit community. It …read more »
On October 1, 2012, the old Kraft Foods Inc. (old Nasdaq symbol KFT) broke itself into two publicly traded companies: Mondelez International and Kraft Foods Group.
Kraft shareholders received one share of the new Kraft Foods Group for every three shares they held. This was a tax-free transaction: shareholders will not have to pay capital gains taxes until they sell …read more »
NVIDIA CORP. $12 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 624.9 million; Market cap: $7.5 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.5%; TSINetwork Rating: Average; www.nvidia .com) is down 20% in the past year. That’s mainly because slowing sales of traditional computers are hurting demand for its graphic chips, which make computer video run more …read more »
Like Kraft (see page 111), Sara Lee Corp. recently split into two separate companies: U.S.-based Hillshire Brands and Holland-based D.E. Master Blenders.
Both stocks have stayed in a narrow range sincethe split in June 2012. That’s partly because investors often dump new shares they didn’t want. As well, few brokers cover these new companies.
However, spinoffs tend to pay off for …read more »
DUN & BRADSTREET CORP. $76 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 44.6 million; Market cap: $3.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.dnb.com) shot up to around $84 in August 2012 on speculation that the company may sell itself. However, reports that it has stopped looking for a buyer caused the …read more »
ALCOA INC. $8.27 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.1 billion; Market cap: $9.1 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.alcoa.com) has completed the sale of its Tapoco hydroelectric dams in Tennessee and North Carolina. These facilities supply power to Alcoa’s nearby aluminum smelter. The company recently shut down parts of …read more »
SONY CORP. ADRs $10 (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.0 billion; Market cap: $10.0 billion; Price-to-sales ratio: 0.1; Dividend yield: 3.1%; TSINetwork Rating: Average; www.sony.com) has agreed to buy 11% of distressed Japanese camera maker Olympus for $640 million. In addition, the companies will work together on new medical-imaging equipment that includes …read more »