Please Watch My New YouTube Video: Quick Pick Cheniere Energy

Please Watch My New YouTube Video: Quick Pick Cheniere Energy

Today’s Quick Pick is Cheniere Energy (LNG). Cheniere is a liquified gas supplier  and the stock was down about 7.5-8% this year. Much of that drop was a reaction to the Biden administration’s decision to delay permits for new LNG export facilities in order to put pressure on the industry to decrease their methane emissions. However, this is essentially a non-issue for Cheniere since the company’s most recent expansion had already been permitted. The company is on track to go from a capital-intensive/debt heavy stage to putting billions into new sites and export facilities to a generator of free cash flow from those completed facilities.  The current dividend is only 1.05% but the total yield, (dividends plus stock buybacks) is about 6.05%. Management has said they believe there will be enough free cash flow to raise the dividend rate by 10% a year from now until the mid to late 20s. In my opinion, demand for LNG is shifting as markets like Japan and China are transitioning to nuclear or solar and wind, but there is still growing demand from places like India, which is looking to transition away from coal. Cheniere is predicting 3% annual revenue growth and I think that’s reasonable and enough to keep the cash flow and dividends moving. I will be Cheniere to my Dividend Portfolio on those future yield prospects.

Please Watch My New YouTube Video: Quick Pick CVS

Please Watch My New YouTube Video: Quick Pick CVS

Today’s Quick Pick is CVS Health (CVS). CVS owns a unique combination of healthcare delivery channels. Drugstores, yes–9,000 of them. But the company also owns health insurance company, Aetna, and Caremark, the largest pharmacy benefit manager. And recently it moved into the primary care marketplace through its acquisition of Oak Street. The company reported earnings on Wednesday, February 7, and the stock was up about 3.25% after that. While the earnings were good, (they beat by $0.13) the guidance is what is important here. The company projected higher costs for 2024 and cut guidance for GAAP earnings ($7.06) and adjusted earnings ($8.30). The reason the stock went up despite these cuts is that everyone was expecting DEEPER cuts to guidance. CVS has been signaling for weeks that rising costs in 2024 could be painful for the healthcare sector as a whole, and the relatively minor cuts in guidance led to a rally in the stock. Morningstar calculates a fair value for CVS Health of $103 a share. The stock closed at $76.32 on February 9. The stock also pays a 2.36% dividend. The stock is a member of my Dividend Portfolio. That position is up 31.25% since October 28, 2020.

Please Watch My New YouTube Video: Pick of the Week HAS

Please Watch My New YouTube Video: Pick of the Week HAS

Today’s Quick Pick is Hasbro (HAS). This stock isn’t terribly exciting or groundbreaking. There’s no big new tech connected to this pick. Hasbro makes toys and traditional toys are considered a declining industry. The stock is indeed ,60% off of its 2019 high. This is not a growth stock, but it is a reliable, high yield, dividend stock. Cash flow from toy sales is consistent enough to keep the 5.5-6% coming Sales may be flat this year but licensing with brands like My Little Pony and Transformers keep the company’s toys top of mind with kids and in the media. Hasbro is one of three major toy brands that make up 40% of the traditional U.S. toy market and 30% of the global market. The industry may not be exciting, but the high dividend yield makes this worth a look. I’ll be adding this to my Jubak Picks Dividend Portfolio next  week.

Step #8 in my Special Report: Sell DE, CAT and BHP tomorrow

Step #8 in my Special Report: Sell DE, CAT and BHP tomorrow

Today I posted Step #8 in my Special Report: 8 Steps to Protect Your Portfolio from the Global Debt Bomb. I recommended selling Deere (DE), Caterpillar (CAT), and BHP Group (BHP) out of portfolios ahead of rising yields i the bond market. (In the case of Deere, I said I would keep my position in my long-term portfolio but sell the position in my 12-18 month portfolio.) Here’s what I posted in my Special Report

Exxon Mobil in talks to acquire Pioneer Natural Resources for $60 billion–I’m selling my position on Monday

Exxon Mobil in talks to acquire Pioneer Natural Resources for $60 billion–I’m selling my position on Monday

The Wall Street Journal has reported that Exxon Mobil (XOM) is in advanced talks to buy Pioneer Natural Resources (PXD) in a deal valued at $60 billion. Pioneer currently has a market cap of $55 billion. Through in th debt that Exxon would be buying and there’s not a lot of extra upside here, in my opinion. Today’s 10.45% jump in pioneer shares to care of a lot of any potential deal premium. (I’m assuming that the report is accurate. Today’s news story follows on earlier speculation that the two companies were talking.) Unless you think another bidder will emerge–difficult but not impossible at this deal size, I’d sell my shares here. I like Pioneer as an independent big dividend paye

Please Watch My New YouTube Video: Quick Pick Iron Mountain

Please Watch My New YouTube Video: Quick Pick Iron Mountain

Today’s Quick Pick is Iron Mountain (IRM). Iron Mountain has been around since the 1950s. It started off as a corporate document storage repository and has gradually moved into shredding, security and digitalization (they digitize and store important documents) and a full cloud storage and management offering. The company has 93 million square feet of storage around the world in 56 countries. It acquired about 29 companies in the last three years as the company looks to consolidate a still rather fragmented industry. It has had an average 5.6% revenue growth over the last three years. Morningstar calculates the shares trade at a 3% discount, with a PE of 31, and they pay a 4.2% dividend. I think Iron Mountain is riding a number of o-gern The long-term trends that include corporate and cyber security, as well as the need for document backup in a age of climate change. I’ll be adding this to my JubakPicks and Dividend portfolios on Monday, July 24..

10 Stocks for the AI Gold Rush–and WHY these picks

10 Stocks for the AI Gold Rush–and WHY these picks

Artificial intelligence really is a paradigm-breaking, transformative technology. Right now, investors are so enthusiastic about the sector, especially the obvious leader Nvidia (NVDA), that we’re looking at a potential bubble that will collapse with much gnashing of teeth and I-told-you-so “wisdom” casting doubt on the reality of the entire endeavor. I think a bubble is indeed possible. Nvidia did trade at a trailing twelve-month price-to-earnings ratio of 196 on May 31, after all. But I think you do want to own the sector now–because the breaking of the bubble, if it does break is, in my opinion, two quarters or more away. And you want to own the sector for the long run–say, 10 years or more–because it is such a game changer for so much of the economy. But what to own? I’ve put together a list of the 10 stocks that I think are the best way to participate in the AI gold rush.