by Michael Keane
A few things happened in the last couple of weeks in the IPO arena that strengthens the desire to having decentralized value more prominent. The not so wonderful feelings of fear and greed were (and are) currently present in the WeWork, Peloton, and Saudi Aramco IPO process and it hurt all three companies.
The closely guarded and deeply centralized IPO process did not work well. Conversations in the media like Sonali Basak from Bloomberg are picking up on this topic. First, the IPO of We Work was pulled with the drama of its financials and the CEO. The IPO of Peloton fell flat on its face. Some feel it got taken on the idea that the valuation is for a tech company. The government of Saudi Arabia is doing more than a few things not in its normal behavior in order to get the IPO of Saudi Aramco done. They seem to be rushing through to the IPO, ignoring the security issues as well as the stagnation and possible downward momentum in the price of oil.
One improvement may be the idea of the Dutch auction model that Google
used. It just seems that there is a better deal out there for investors
when it comes to IPO's. Firms not associated with the company going
public like Morningstar and other analyst firms can and likely should be
the driver behind how an IPO should be analyzed and sized up for
investors.
Possible investors in all three companies would be served better in its goals of investment with a more visible and transparent IPO process. Sometimes, it can be a bad combination when you have private company investors looking to profit from their investment by having an IPO and investment bankers hungry for that fee. Taken separately, both are fine. But together, the above mentioned issues show up on a regular basis. If a less biased look at the company can happen, new investors, the company, and the market will be better served.
Good luck in all your trading and investing matters!
**All
posts on this blog are information and opinions only. They are not to
be considered recommendations to buy or sell any security. Please do
your due diligence first before trading and investing. Please direct all
questions and comments to the blog, kdkfund@gmail.com, or on
twitter @kdkfund.
Showing posts with label Bloomberg. Show all posts
Showing posts with label Bloomberg. Show all posts
Sunday, September 29, 2019
Tuesday, July 30, 2019
Rate Cuts Are For Buybacks
by Michael Keane
In an earlier story (link here), our partner KeaneVCC documented how corporations used the tax cut to buyback their shares. The biggest beneficiaries of this process were the executives as bonuses are regularly tied to stock prices. We like to call this process the executive bonus protection plan based on the idea of higher stock prices equal higher bonuses.
Now that it is shown that the tax cuts didn't do enough for those outside the executive area, they are gunning for rate cuts.The lower cost of borrowing is needed to continue to buyback shares at a profitable level for corporations.
A cnbc.com article (here) on the topic from Jeff Cox addresses this exact issue. Bloomberg TV also spoke about this topic with David Levovitz from JP Morgan Asset Management.
This is a warning sign for the economy. Be careful out there.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog, kdkfund@gmail.com, or on twitter @kdkfund.
In an earlier story (link here), our partner KeaneVCC documented how corporations used the tax cut to buyback their shares. The biggest beneficiaries of this process were the executives as bonuses are regularly tied to stock prices. We like to call this process the executive bonus protection plan based on the idea of higher stock prices equal higher bonuses.
Now that it is shown that the tax cuts didn't do enough for those outside the executive area, they are gunning for rate cuts.The lower cost of borrowing is needed to continue to buyback shares at a profitable level for corporations.
A cnbc.com article (here) on the topic from Jeff Cox addresses this exact issue. Bloomberg TV also spoke about this topic with David Levovitz from JP Morgan Asset Management.
This is a warning sign for the economy. Be careful out there.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog, kdkfund@gmail.com, or on twitter @kdkfund.
Sunday, March 26, 2017
Week In Review (Ford Shares Purchase)
Ford was busy this week.
It announced an earnings warning (Bloomberg link here). The drop in the share price allowed KDK Fund to purchase more shares (link here).
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
It announced an earnings warning (Bloomberg link here). The drop in the share price allowed KDK Fund to purchase more shares (link here).
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Wednesday, September 30, 2015
Terrible Year For Investors????
By: Michael Keane
There was a recent article published on Yahoo! Finance and Bloomberg that had the headline "2015 Is turning out to be a terrible year for investors" (link here). This caught the fund's attention for a couple of reasons. We disagree with the assertion that it has been a terrible year for investors. The fund also feels that this kind of headline mismanagement should be checked when needed.
While the fund agrees that 2015 continues to be a tough year for those investors looking to sell shares, those investors looking to actually invest are not really complaining about the downturn. The fund was able to pick up shares of MFA, Ford, and AT&T in the past six months at wonderful valuations. Without the downturn, this could not have happened.
The importance of a headline cannot be understated. KDK Fund is always looking to maximize the message to its readers when thinking about the proper headline. While reading a headline like the article has might gain short term reading, it actually does long term damage to the brand of news outlet delivering it. Seasoned investors know to avoid articles with these types of headlines because they know the content of the article will probably be just as worthless. While KDK Fund is aware that sometimes the writer (in this case Wes Goodman) does not have any control of the headline printed for the story, he or she should make it clear to the editors that the headline should match their quality of writing. Seeing Bloomberg at the headline game is kind of weak and more the norm of its main competitor.
Well rounded investors know that there is ample opportunity in all markets. Seeing this type of headline screams for new investors and those consumed with knee jerk reaction emotions towards the market. Not only is the headline wrong in regards to the message, it shows a priority on gaining readers eyes instead of educating its readers brains.
Happy Investing!
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
There was a recent article published on Yahoo! Finance and Bloomberg that had the headline "2015 Is turning out to be a terrible year for investors" (link here). This caught the fund's attention for a couple of reasons. We disagree with the assertion that it has been a terrible year for investors. The fund also feels that this kind of headline mismanagement should be checked when needed.
While the fund agrees that 2015 continues to be a tough year for those investors looking to sell shares, those investors looking to actually invest are not really complaining about the downturn. The fund was able to pick up shares of MFA, Ford, and AT&T in the past six months at wonderful valuations. Without the downturn, this could not have happened.
The importance of a headline cannot be understated. KDK Fund is always looking to maximize the message to its readers when thinking about the proper headline. While reading a headline like the article has might gain short term reading, it actually does long term damage to the brand of news outlet delivering it. Seasoned investors know to avoid articles with these types of headlines because they know the content of the article will probably be just as worthless. While KDK Fund is aware that sometimes the writer (in this case Wes Goodman) does not have any control of the headline printed for the story, he or she should make it clear to the editors that the headline should match their quality of writing. Seeing Bloomberg at the headline game is kind of weak and more the norm of its main competitor.
Well rounded investors know that there is ample opportunity in all markets. Seeing this type of headline screams for new investors and those consumed with knee jerk reaction emotions towards the market. Not only is the headline wrong in regards to the message, it shows a priority on gaining readers eyes instead of educating its readers brains.
Happy Investing!
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Friday, April 10, 2015
GE Gaps Up On Real Estate Unit Sale
KDK Fund stock GE continues its move to focus on its industrial business by announcing the sale of most of its Real Estate business. The link to the Bloomberg story is here. This has provided a gap up on the stock. The fund wishes this announcement could have been announced after the dividend payment in a couple of weeks as the dividends are currently reinvested ;).
One of the things that KDK Fund is getting assistance on from KeaneVCC is that focus is extremely important to your mission's success. GE seems to be headed that way with their industrial businesses.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
One of the things that KDK Fund is getting assistance on from KeaneVCC is that focus is extremely important to your mission's success. GE seems to be headed that way with their industrial businesses.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Realty Income Joins S&P 500 Index
Last week it was announced that KDK Fund owned Realty Income will be joining the S&P 500 Index (Bloomberg story link here). This action will allow more mutual funds and other funds focused on the S&P to invest capital into the company. We are thinking this might be part of the reason as to why the company released 5+ million more shares into the market. But that is just speculation (as is everything else ;)). KDK Fund also owns S&P 500 Index members Sysco, GE, Ford, and AT&T.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Monday, February 9, 2015
Week 2/6 In Review (Nuveen, AT&T, Ford, more)
There were no new purchases or sales during the week. Dividends from Nuveen and AT&T were received during the week (post link here). The next scheduled purchase will be in the next 1-3 weeks. Bullet points for the week are below.
- Ford reports great January (Bloomberg story here).
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
- Ford reports great January (Bloomberg story here).
| Company | Current Price | Purchase Dates (not including dividend reinvestment purchases) | Cost Basis (includes dividend purchases | Dividends Received Per Non Dividend Share Since Purchase | Dividends Received from Reinvested Dividends | Current Profit/Loss | Date Sold |
| Realty Income | $50.83 | 1/14/2014, 7/29/2014 | $43.39 | $1.4365 | $0.07 | 17.15% | Current Holding |
| Ford | $15.85 | 2/11/2014, 1/13/2015 | $15.17 | $0.3750 | $0.01 | 4.48% | Current Holding |
| AT&T | $34.87 | 3/28/2014, 9/12/2014 | $34.87 | $1.3800 | $0.12 | 0.00% | Current Holding |
| Sysco | $40.26 | 5/7/2014 | $36.66 | $0.8850 | $0.01 | 9.82% | Current Holding |
| Powershares BAB | $30.60 | 6/23/2014 | $29.06 | $0.9300 | $0.03 | 5.30% | Current Holding |
| Nuveen Comm | $16.65 | 10/22/2014 | $14.77 | $0.5400 | $0.05 | 12.73% | Current Holding |
| GE | $24.52 | 12/3/2014 | $26.10 | $0.0000 | $0.00 | -6.05% | Current Holding |
| Average | 7.23% |
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Friday, January 9, 2015
Ford Goes Crazy With 20% Div Increase
There was a surprise with the recent dividend increase by Ford. The company decided to increase their dividend by 20%. The new quarterly dividend for 2015 will be $0.15 per share. The fund was expecting the raise to be in the $0.13-0.135 range. This increase puts the yield at about 4%. The Bloomberg story about the increase can be read here.
This completes the list of expected dividend increases for KDK Fund that was detailed in this previous post (link here). A future post will cover what the expectations were and what the results were.
If you have any stocks that you think KDK Fund would be interested in researching, let us know at kdkfund@gmail.com or twitter @kdkfund.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com**
This completes the list of expected dividend increases for KDK Fund that was detailed in this previous post (link here). A future post will cover what the expectations were and what the results were.
If you have any stocks that you think KDK Fund would be interested in researching, let us know at kdkfund@gmail.com or twitter @kdkfund.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com**
Monday, December 15, 2014
GE Raises Dividend for 2015, Now Back at Precrisis Levels
GE has just announced that they have increased their quarterly dividend from $0.22 to $0.23 per share. Getting a 4.5% increase in the dividend is very positive for shareholders. This also puts the dividend back to the level it was at before the financial crisis. The Bloomberg story link is here.
This is the third company in the fund's portfolio to hike their dividend in the last six months (Realty Income and Sysco being the others). Current dividend hikes will add 1.5% to the dividends received in 2015 compared to 2014. More dividend hikes for 2015 are expected. Investing capital into companies that are able to continue to increase their dividend payments is one way to build lasting wealth.
If you have any stocks that you think KDK Fund would be interested in researching, let us know at kdkfund@gmail.com or twitter @kdkfund.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com**
This is the third company in the fund's portfolio to hike their dividend in the last six months (Realty Income and Sysco being the others). Current dividend hikes will add 1.5% to the dividends received in 2015 compared to 2014. More dividend hikes for 2015 are expected. Investing capital into companies that are able to continue to increase their dividend payments is one way to build lasting wealth.
If you have any stocks that you think KDK Fund would be interested in researching, let us know at kdkfund@gmail.com or twitter @kdkfund.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com**
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