Stocks and Dollars

By Crunching Numbers:

Frontier Communications (FTR) recently released fourth quarter and full year earnings. At the same time, the company slashed its annual dividend from $0.75 to $0.40. The dividend cut had been priced into the share price by the market for several months, as evidenced by a dividend yield in the high teens. However, during the entire time, management and the board steadfastly reiterated that the dividend was secure.

Furthermore, management also stated that the dividend coverage ratio was where management expected it to be when the company first acquired a significant amount of Verizon’s (VZ) local business in 14 states more than a year and a half ago.

A somewhat lengthy chronological history of the board and management’s statements follows. These statements addressed the payout ratio, sustainability and attractiveness of the dividend. Those less interested in the specifics can scroll down to the section “Why was the Dividend Cut?“

A press

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By Helix Investment Management:

It is only natural that certain stocks elicit more emotion from investors than others. Companies that are a presence in the day to day lives of people are particularly subject to this. Apple (AAPL), Netflix (NFLX), Amazon (AMZN), and Microsoft (MSFT) are just some of the companies that people get emotional about. On Seeking Alpha, we have seen statements along the lines of “I don’t like iPhones, therefore Apple is a bad investment”, or “I love Netflix’s service, the stock is a fantastic buy.” Emotion has little place in investing. Personally attacking critics of a stock you invest in because they bring up diverging viewpoints is the wrong way to approach investing.

One of the stocks that is most subject to such heated debate is Sirius XM (SIRI). Bulls and bears of the stock battle it out on an almost daily basis. We have casually followed the stock for some

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By Jeff Taylor:

Activision Blizzard (ATVI) is a great company. It has fantastic growth potential, a popular lineup of games, and a history of capitalizing on strong franchises. This year will continue the trend for the gamemaker, which, at its current price, offers a cheap buying opportunity.

In the short term, profit growth will be driven by the large lineup of major titles that are to be released this year. In the long term, this growth will be protected by the creation of new franchises.

Short Term Growth

Growth this year will be driven by one of the largest release lineups in the history of ATVI. Activision will release two major games – Skylanders: Giants and Call of Duty 9 – while continuing to build and support Call of Duty: Elite (as well as a lineup of smaller games that will not be discussed). Blizzard will release two games - Diablo III and

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By Brad Thomas:

These days, there appears to be a continued flight to quality in commercial real estate – especially the triple net sector. Due to the risk-aligned fundamentals of the single-tenant assets, the triple net sector provides investors with a sound vehicle in which to intelligently bear risk for profit. Unlike the other asset sectors, the triple net model is distinguished by a well-balanced platform of sustainability that is also the essence of the brand differentiation.

Conversely, it is the uninterrupted income characteristics that draw investors towards the triple net REIT sector. One of the most persuasive tests of high-quality is an uninterrupted dividend supported by consistent profits and earnings. Realty Income (O) and National Retail Properties (NNN) have provided decades of sustained income performance with a combined forty years of consistent and increased dividends paid. That remarkable record of repetition is best explained by Chris Zook and James Allen in co-authors

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By Rocco Pendola:

I attended undergrad at one of the nation’s more so-called “liberal” schools, San Francisco State University. Some of my fondest memories center on the rivalry, for want of a better word, between the College of Business and the College of Behavioral and Social Science.

You could tell that business students hated taking general education courses in the behavioral and social sciences. That came through most clearly in philosophy, sociology, social work, urban poverty and touchy-feely psychology classes. The business students wanted no part of the “useless crap” we learned in those disciplines. They just wanted to fulfill requirements so they could get into Berkeley’s MBA program or somesuch.

Admittedly, social science geeks, serious psychology majors and even the more politically-active policy wonks dreaded business class. For them, a George Bush fundraising rally would have represented better time spent.

Many of us, particularly those headed to graduate school, considered ourselves embarked

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By Stephen Simpson:

Commercial aerospace has moved from a state where investors worried about whether orders would materialize to worrying about the profitability and delivery timelines for those orders. More recently, though, the CEO of a major aircraft leasing company has sounded a warning that aircraft order rates may be unsustainable and suggested that the rich order books at Boeing (BA) and Airbus may end up being something of a mirage.

Warnings From Someone Who Ought To Know

Late in February, Aengus Kelly, the CEO of AerCap Holdings (AER), warned in an interview that the order books at Boeing and Airbus may never be fully realized. For those not familiar with AerCap, it’s the third-largest aircraft lessor in the world and presently the largest publicly-traded lessor.

Put very simply, AerCap is in the business of buying commercial aircraft and leasing them to airlines that cannot afford (or otherwise don’t want) to take possession

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By Frank Voisin:

Staples, Inc (NASDAQ: SPLS) is the world’s largest provider of office supplies, which sells through its 1,908 superstore locations in United States and 377 locations abroad, as well as via its online and direct delivery system. On Wednesday, the company reports its Q4 and full year results for fiscal 2011, which is a time when many companies see their shares move quite dramatically. I thought it would be worth pausing now to consider SPLS in order to provide some context for Wednesday’s results.

SPLS has two main competitors: Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX). For a bit of background, the business supplies industry was highly fragmented until the late 1980s/early 1990s, when the superstore concept emerged with SPLS, ODP and OMX emerging as dominant players. In 1996 SPLS and ODP announced their intention to merge. The FTC blocked this transaction, noting that the combination of the top two

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By Igor Novgorodtsev:

I believe that the Australian economy will face a very rough landing and I am short iShares MSCI Australia Index Fund (EWA).

Prologue

About a year ago, I met an Australian pharmacist in Hawaii on board a whale-watching ship. He introduced me to his family — a strong Australian currency made it possible for them to come on this distant trip. We struck up a conversation about his business, life in Australia in general, and the booming Australian real estate.

This gentleman, in his early 50s, was thinking of retiring soon because he had re-invested most of the proceeds from his business in several Sydney condos that had almost doubled in price. He said he needed to work for a few more years as the cash flow from tenants was too short to cover his mortgage. But, not to worry, the great real estate capital appreciation will more than make

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