Tag Archives: debt

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Update to my first silver Weekly + new research report

Almost exactly a year ago I published a Weekly with the question whether it was the right time back then to buy silver. I rather referred to silver in physical form, respectively via ETFs which hold it in physical form, as I had difficulties in finding an investable stock of a producer that fit my strict quality filter. This industry is still a mess, as many miners are actively destroying shareholder value and / or are having difficulties with their costs, but also declining reserves.

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Invest in businesses with net cash or net debt?

During the last one and a half decades, it nearly didn’t matter to look at a company’s balance sheet. The reason was quasi non-existent interest rates – a historically unprecedented scenario, not only for the younger generation. Hence, it is no wonder that those who held too much cash in their books even got punished by not receiving any income on their deposits. On the other hand, debt-hungry entities got subsidized. However, the winds have changed. Interest rates are up dramatically. What are the consequences?

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Unibail-Rodamco-Westfield – A steel at 0.3x property value?

Who does not dream of owning at least part of a city’s most valuable properties? And what about several prime locations? Unibail-Rodamco-Westfield is Europe’s biggest owner of mainly shopping malls, but also offices, in many metropolitan areas with high foot traffic. The stock is currently valued at a third of its “net reinstatement value”, i.e. its replacement or asset value as an investor would call it. 33% is less than Buffett’s famous “dollar for 50 cents” – is URW a buy?

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A silver lining for Argentina? A look at YPF + new research report

Argentina is mainly known as a nation being in perpetual crisis mode. Besides beef, wine and tango, among the first thoughts that likely come to one’s mind are debt, economic hardship and hyperinflation. Needless to say that in such an environment you won’t find a booming economy. However, many Argentine stocks or those with a vast exposure to this market, have been rising over the last months. Is a (massive) turnaround in sight?

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The dice are cast – 3M will have to cut its dividend

My long-time readers know that I have pointed my shotgun at candidates with likely coming dividend cuts. I even made two Weeklies out of this topic, as I am still convinced that dividend cuts will be one of the mega trends of this decade, and a fairly underestimated one! There are several companies where I am seeing massive operating and financial issues. In this latest episode, I am targeting again the famous industrial conglomerate and inventor of post-it stickers, 3M.

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Turnaround-bet: Is Vodafone’s 10% dividend yield a no-brainer?

The British red telecom giant announced not only a CEO-change, but also a strategic shift (both often come as one). Meanwhile, the share price is advancing its year-long decline, reaching even a fresh quarter-century low (!), as investors seem totally unimpressed. In the past, Vodafone has been a reliable dividend payer, although the payout was cut in 2019 and not raised again since then. The 10.7% yield seems tempting. Can it get worse or is it worth a shot?

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Deep Dive into Offshore Energy Drilling – coming back from the near-dead + new research report

Not only being one of the most cyclical, but also most hated energy sub-sectors, offshore drilling has been a secure investment grave for the last nearly 15 years. There is barely any investment topic where you could have sunk money more reliably. However, there are really interesting developments that make it worthwhile to risk a look into it, again. Especially, as along as it is perceived a no-go area for ESG-promoters – although offshore drilling tends to be the best choice in this regard.

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Earnings quality the worst in three decades – look at free cash flow!

Operating or net income, adjusted operating or net income, earnings per share (EPS), adjusted EPS and the price to earnings (PE) ratio are commonly used to assess a company’s business results and to value it. They are also often used as headline numbers and proof of performance by the companies themselves. However, there is a rising trend of decreasing “earnings quality” – an indicator that neither the economy is doing pretty well, nor many companies.

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Big Pharma to destroy shareholder value? + new research report for Premium Members

Stocks of big pharmaceutical companies have been core holdings in many portfolios for as long as I can remember, probably even beyond that. The reasons are crystal-clear: an ever aging population, more chronic diseases also among younger generations, stable to slightly rising demand throughout the business cycle, relative price stability of those stocks and reliable dividends. What’s not to like?

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Megatrend of this decade: Dividend cuts + an update to my most popular article so far

Even though I know that I certainly won’t make many new friends with this article, especially not from the ranks of dividend investors, it is a duty for me to address this topic. I also think, it’s no coincidence that my most popular article to date has been about looming dividend cuts. Simply put, it’s too important to be ignored.

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