Checkmate – more kings to have on the radar for dividend cuts

My longer time readers know that dividend cuts have been one of my favorite topics. It is of high importance for me to ring the bell in order to help investors get more cautious with their investments. There are no risk-free stocks. The same applies to proclaimed “bond-proxy” dividend stocks, no matter which useless title they hold in connection with their dividend series. Today, I’m presenting two more kings I have on my radar for a cut.

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Raspberry going public – cheap under-the-radar opportunity?

Hobbyist computer company Raspberry – known for its small single board devices of the size of a credit card – will become a publicly traded company in a few weeks. In fact, Raspberry is more than just a hardware company for do-it-yourselfers. It’s targeted 500 mn. GBP IPO looks cheap on the surface with a (debt-free) PE of 20x and a growth story attached to it. I took a closer look into the prospectus – the stock will likely be way more expensive than you might think. Caution is advised.

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Burberry – closed at a loss + what to take home

As is with investing, from time to time, there will be losing positions in a portfolio in company to big winners. This is what happened among my ideas for my Premium PLUS members. Last week, I threw out Burberry after I lost patience due to deteriorating fundamentals. Today, I am looking back at how I formed my thesis, what happened in the meantime and I explain why I finally pulled the brake as well as why this decision was necessary.

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Is Boeing’s stock now ready for a turnaround?

Who doesn’t know the saying to buy stocks when sentiment is bad? Anti-cyclical investing with the goal to fetch potential turnarounds near the bottom can be quite lucrative. The stock of Boeing has experienced a gigantic rollercoaster ride over the last decade. With the current quality issues likely somehow solvable and Boeing being a company in a duopoly plus of national security, it could be tempting to speculate on a steep climb back up.

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What most investors get wrong about gold stocks + new research report

There are three things the majority of investors fail to understand with regards to gold stocks. The first is gold is NOT THE hedge against inflation and thus gold stocks not even better hedges. The second is with higher gold prices, NOT ALL gold stocks go up exponentially. The third is the evergreen that all gold stocks are heavily undervalued by the stupid market and great buying opportunities. I am going to take these beliefs apart. My Premium PLUS members receive on top my best gold stock idea after I have already had a golden hand with my silver pick (for all my members). If you read until the end, I have a small gift for you.

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Back to 2012 after the blocked acquisition – is Capri Holdings a buy?

Last year in August, struggling Capri Holdings, known for its brands Michael Kors, Versace and Jimmy Choo, received a bid from competitor Tapestry. Capri’s stock surged by 50%. However, the Federal Trade Commission (FTC) wants to block this deal in fear of market concentration. As the deal still hasn’t closed and court hearings are ongoing, the stock lost now the complete bid premium. It fell even back again to 2012-levels. Is the stock a buy now?

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The untold risks of average returns

This headline might sound confusing at first sight, but behind it is a topic worth thinking about. As one understands what’s behind “average returns”, a portfolio check-up could be appropriate, especially if one is overweight in stocks with past above average performances paired with high valuations. A few thoughts on risk-adjusted investing.

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Uncle Sam as tenant? Two stocks with government exposure – Part I

While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part one.

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Quitting at a loss to free up capital and the mind

Today, I’m writing about one of my (former) best stock ideas which didn’t play out as initially thought. Besides describing the case and the reason that led me to throw in the towel, I also want to use it to show why it’s important to regularly go over one’s portfolio and to cut the weeds.

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Paypal – despite –80%, I think it can fall another 50%

PayPal’s stock was without a doubt one of the highfliers during the 2020–2021 tech mania. At its top, PayPal was valued at around 15x sales, having a market cap of more than 350 bn. USD, despite only 6 bn. USD in free cash flow. Not so surprisingly, the stock came back from this unsustainable level, though many likely didn’t expect to see less than 15x earnings after a drop of 80%. Time for a turnaround? I think this is still a strong value trap, good enough to fall another 50%.

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