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What did you buy? What might you buy??

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  • Oct 20th, 2018 8:54 pm
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Deal Addict
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Feb 3, 2011
1913 posts
338 upvotes
boyohboy wrote:
Nov 8th, 2017 9:35 am
The "King of Graphics" Raja resigned from AMD.
I don't think this is a big surprise to anyone. Everyone predicted he wasn't coming back from sabbatical because he was pushed out by the CEO.
Baaaaaaaaa!
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Dec 6, 2006
4070 posts
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Toronto
sharpshooter88 wrote:
Nov 8th, 2017 9:41 am
I don't think this is a big surprise to anyone. Everyone predicted he wasn't coming back from sabbatical because he was pushed out by the CEO.
Was he pushed out? He kinda took over half the company tho for the last couple of years. I was thinking it may have been related to the Intel partnership? The timing seems related.
So ~3% drop now...
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Feb 3, 2011
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boyohboy wrote:
Nov 8th, 2017 9:54 am
Was he pushed out? He kinda took over half the company tho for the last couple of years. I was thinking it may have been related to the Intel partnership? The timing seems related.
So ~3% drop now...
The rumour was that he was quietly being pushed out, the whole sabbatical was just allowing him to save face. Who knows though. The rumour now is that he's going to Intel and announcement will be coming soon.
Baaaaaaaaa!
Sr. Member
Feb 26, 2017
748 posts
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KEY is up after an earnings miss and revising guidance down. I own KEY and shouldn't complain, but I don't understand...
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Nov 9, 2013
2421 posts
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Edmonton, AB
sfrancis wrote:
Nov 8th, 2017 8:54 am
Was looking into adding on SBUX, LOW, DIS. Probably will add LOW. Concern with SBUX is if they can maintain growth rate to justify current PE. I guess very difficult to predict as with any other growth stock.
Let's make the following assumptions - 1) EPS growth rate of 10% and 2) Dividend yield stays constant at ~ 2%. Based on the TTM EPS of 1.97, 5 years from now the EPS would grow to 3.17.

If the P/E remains fixed at 29, that's a 9.85% annualized return plus ~ 2% dividend (so, ~11-12% total return).
If the P/E contracts to 25, that's a 6.65% annualized return, plus ~ 2% dividend (so, ~8-9% total return)
If the P/E contracts to 20, that's a 2% annualized return plus ~ 2% dividend (so, ~4% total return)

I think the P/E will contract as growth slows, although I don't think it will contract to 20 unless there is a substantial bear market. I also think a 10% growth rate is on the conservative side. I think something like 6-8% annualized is probably most likely over the next 5 years, which I think is pretty decent for a wide moat company. Assuming SBUX remains strong moving forward, the longer I hold the better I'll do. As always, time will tell.
Sr. Member
Feb 26, 2017
748 posts
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muhammadfarooq wrote:
Nov 8th, 2017 10:12 am
Why is Linamar down 12%?
From TDDI:

Linama (LNR.TO), Canada's second-largest auto-parts maker, missed third-quarter profit expectations, as weakness in North American light vehicle demand hit the company's bottom line, BNN TV noted Wednesday. Its shares at last look were down 12%.

BNN noted volumes in the North American light vehicle market fell 7.7% in the quarter, and noted the company was hit by unfavourable currency exchange impacts. BNN said the weak quarter comes at a sensitive time for the North American automotive sector, which has found itself in the crosshairs at the NAFTA negotiating table.

BNN noted the U.S. Department of Commerce is pushing for a 'Made in America' requirement of up to 50% of every vehicle produced on the continent. Currently, there is a quota for overall NAFTA content in order to qualify as North American-made, but no country-by-country requirement, BNN said.
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Jun 27, 2007
3890 posts
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treva84 wrote:
Nov 8th, 2017 10:09 am
I think the P/E will contract as growth slows, although I don't think it will contract to 20 unless there is a substantial bear market. I also think a 10% growth rate is on the conservative side. I think something like 6-8% annualized is probably most likely over the next 5 years, which I think is pretty decent for a wide moat company. Assuming SBUX remains strong moving forward, the longer I hold the better I'll do. As always, time will tell.
what's the historical PE for SBUX? Multiples often collapse in corrections and expand in bull markets. While 29 is somewhat high, there is no other global brand in restaurants industry that is as recognizable as SBUX. They are in every major airport and locations are always busy. They have pricing power and folks would still come back...
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
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Nov 9, 2013
2421 posts
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Edmonton, AB
dlhunter wrote:
Nov 8th, 2017 10:41 am
what's the historical PE for SBUX? Multiples often collapse in corrections and expand in bull markets. While 29 is somewhat high, there is no other global brand in restaurants industry that is as recognizable as SBUX. They are in every major airport and locations are always busy. They have pricing power and folks would still come back...
I agree - brand recognition is huge.

Median PE over the last 10 years has been 29.
Newbie
Oct 1, 2011
86 posts
11 upvotes
Georgetown
White Comet wrote:
Nov 8th, 2017 10:52 am
AIM has Q3 earnings report tomorrow, anyone going to take a flier on this?
All news should be positive for AIM's Q3 results. I'm skeptical that it'll jump huge, but at the same time I don't see it going down.

At the $10 level I'm going to be buying some ZCL. Almost 5% yield with good potential upside now, sell off of this stock has been a little ridiculous.
Member
Apr 21, 2010
228 posts
18 upvotes
Any thoughts on Alaris Royalty Corp, may be oversold a bit ? They just wrote off one of their loan books (or a while back) and took that hit this Q

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