Glad you thought there is opportunity with Newell also. I'm not sure I see as much earnings upside as you but hope you are right. I did like how the price had moved closer to book value and how proceeds of the dispositions were applied toward debt reduction, also I thought there was a good chance for improvement in net cash flow going forward over this quarter. I haven't followed the company very long and don't know what the story is about the Jarden acquisition and the dissenting shareholders, it looks like there are only a few left. I'm hoping the improved cash flow gets put to good use and that most of the downside risk has been dealt with.
I see people focusing a lot on growth estimates and am trying to stay wary of growth estimates. I'm still in a losing position with KHC after 18 months but learned a few things in their latest quarterly financials. I've been trying to buy good value as represented by management looking after the company, the shareholders, and providing the return I expected. I bought KHC as I wanted a major food provider in the portfolio, although not happy with the total return so far I am still happy with the ongoing dividend return on my cost and knew when I made the expenditure that managements guidance was that they were going to spend '16 and '17 digesting the merger so I'm not looking to sell. I think I'll be watching net cash flow more in the coming year and believe there might be more than a few caught off guard focusing on operating cash flow.
I think I have a tax liability now in the portfolio that I'm not even sure can be dealt with which is a shame as it looks like an excellent company. As a Canadian I think I am going to need to get some legal advice just to confirm if the liability exists, and if so to whom. Should be educational anyway, depending on what I learn I might sell this listing to limit a growing liability.
I still have some cash I can put to use and although I am not trying to find a Graham target but just looking for value income balancing have been considering VZ, OMC or ETN.
I have a few portfolio positions where I have lightened up yield expectations hoping for growth, Kroger, Visa and Comcast as I really like the businesses, the earnings and the cash flow the companies have. I don't like the insane PE I bought Visa at after watching it for a few years, and I don't like the number of shares weighing on Comcast's PE growth, and I knew my very first buy of Kroger was way to high. I like the companies and think they will be around for a long time so would like them in the portfolio - think more than 18 months is going to be required to find out if they were good buys though. |
