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Genuine Parts Company (GPC) Dividend Stock Analysis

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Linked here is a detailed quantitative analysis of Genuine Parts Company (GPC). Below are some highlights from the above linked analysis:

Company Description: Genuine Parts Co. is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products...

AM Stock Screener – Stocks Appearing in Abrams, Greenblatt, Price Portfolios

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  • One of the new weekly additions here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios.
  • Top investors who currently hold positions in Barnes & Noble include:
  • Joel Greenblatt – 20,116 total shares

AM Stock Screener – Undervalued Fortuna Silver Mines Inc (NYSE: FSM)

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  • The company’s latest balance sheet shows that Fortuna has $218 Million in total cash and cash equivalents.
  • If we consider that Fortuna currently has a market cap of $889 Million, when we subtract the net cash totaling $178 Million that equates to an Enterprise Value of $711 Million.
  • If we move over to the company’s latest income statements we can see that Fortuna has $117 Million* in trailing twelve month operating earnings which means that the company is currently trading on an Acquirer’s Multiple of 6.08, or 6.08 times operating earnings.

Should You Compare GIC Rates with Dividend Yield?

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  • “A 2-year GIC currently yields about 2.6%.
  • But I’m not sure it’s fair to compare investing $10,000 in Microsoft (MSFT) at 1.66% vs investing in a GIC for 2 years at 2.60%.
  • In other words, they rather have a portfolio paying 6% yield and showing a total return of 7% than having a portfolio paying a 2.85% yield but showing a total return of 10%.

Alibaba Is A No Brainer

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  • Being an industrial country, the majority of Chinese businesses are small to medium sized factories and companies related to trade.
  • Sellers register on Alibaba because that’s where the buyers are, and buyers go on Alibaba because that’s where the sellers are.
  • The more Amazon grows ecommerce, the more Alibaba grows.

Paul Hartmann AG (DE0007474041) – Back to my (boring) roots

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  • What I like about the company:
  • Interestingly, Hartmann’s Swiss subsidiary has its stock listed on the Swiss stock exchange.
  • Maybe the Swiss market is more regulated and margins therefore higher ?

Canadian Dollar, Genworth MI and Residential REITs

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  • Speaking of real estate, bearish market participants in Genworth MI are going to face a short squeeze:
  • I’m not sure why anybody would want to use Genworth MI as a proxy for Canadian housing when there are so many more other investment vehicles to express this sentiment, ones that are trading well above book value and are making nowhere close to as much money as Genworth MI is on their insurance portfolio.
  • The cap rates received by purchasers are incredibly low.

As Large Cap Tech Continues to Lead, Valuations Begin to Stretch

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A Disciplined Approach To Dividend Growth Stocks

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Those that have read this space for any period of time are well aware of my enthusiasm for using dividend growth stocks as a vehicle for building long-term wealth and income. However, with that said, a successful investor must do more than just buy stocks that pay a growing dividend, or do more that focusing on a single metric such as dividend yield. Not all dividend stocks are created equal - there is a discipline to selecting good dividend growth stocks...

T. Rowe Price: Value Investing Is Not Dead

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  • A large part of the “Growth” rally has been due to the strong returns of big-cap tech stocks, the “FAANGs,” which have a substantial weighting in the MSCI World index.
  • At the same time, as some sky-high growth stock valuations come down, especially across the technology sector, we may see an opportunity for a turn in the value/growth cycle.
  • The portfolio is subject to the volatility inherent in equity investing, and its value may fluctuate more than a portfolio investing in income-oriented securities.

Li Lu: “The Market Is A Mechanism That Discovers Your Weaknesses. Any Fault/Defect You Have Will Be Magnified Infinitely, To The Point Of Complete Destruction.”

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  • One of our favorite investors to follow here at The Acquirer’s Multiple is Li Lu, Founder and Chairman of Himalaya Capital .
  • Investors take shortcuts because the right and main path takes too long.
  • In reality, you probably cannot predict the company’s growth more than 10 years into the future, as few can due to innumerable uncertainties.

How Much is Enough?

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  • It is about how money makes us feel comfortable, and how much of it we need so that we don’t have to worry about it, and so that we stop chasing it at some point in our lives.
  • If I go by this third friend’s thumb rule, if his annual expense is Rs 12 lac, he would be aiming for around Rs 7-8 crore of liquid net worth by the time he retires at 60 or when his active income stops coming in.
  • Answering the money question of how much is enough will help you know where that finish line could be.

How Texas Instruments Is Worth $126

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  • A fundamental look at how Texas Instruments is a Quality & Growth investment at a fair price.
  • The growth that I focus is on the growth in profitability.
  • TXN has a GPA of 0.57 which means, the company generates $0.57 of gross profit off every dollar of asset it owns.

Things That could Ruin Your Retirement Portfolio Part III

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  • For example, if I need 50K per year and my portfolio generates 30K in dividend per year, I will cash sell for 50K of shares before day 1 of my retirement.
  • Then, if the market drops, I have a full year where I can withdraw money from my “cash account” without being worried by the market.
  • Honestly, if you are retired or about to retire, I think you should make an investment of $1,000 to $2,000 outside your portfolio.

Howard Marks: The Route To Superior Performance Will Continue To Be Humans With Superior Insight

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  • Marks also released a short video (below) which summarizes the memo saying:
  • What then will be the route to superior performance?”
  • As I see it securities markets seem to be moving toward dispensing with us mere mortals and relying more and more on index investing and other forms of passive investing, quantitative and algorithmic investing, and artificial intelligence and machine learning.

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