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KLX Inc: Boeing Merger, KLX Energy Services Spin

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  • As an alternative, KLXI is going to spin off ESG as KLX Energy Services (KLXE) simulatenously with the closing of the ASG deal with Boeing (guided to a Q3 close).
  • KLXI trades for $72.75 today, backing out Boeing's $63 cash offer and KLXE's implied market cap is ~$500MM, it will have no debt and KLXI is gifting KLXE $50MM in cash immediately prior to the spinoff.

Kimberly-Clark Co. (KMB) Dividend Stock Analysis

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Linked here is a detailed quantitative analysis of Kimberly-Clark Co. (KMB). Below are some highlights from the above linked analysis:

Company Description: Kimberly Clark Corp. is a global consumer products company producing tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Scott...

Exchanges, margin rates, Bitcoin

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  • Reading the exchange’s press release on the matter , it looks like that they are discovering that allowing clients to take large concentrated positions in single securities may not be the best idea to ensure the stability of the brokerage.
  • It reminds me when the Swiss national bank decided to no longer support the Swiss Franc at the 1.2 Euro level peg, and then one nanosecond later it crashed through a glass ceiling with such force that it took out FXCM .

The Price of “FAAAM” – 5 Tech Stocks Now Worth Over $4 Trillion

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  • Given that none of the valuations are inexpensive, and Apple is probably the only one that looks to be no worse than fairly valued, investors relying on this group for future returns will need growth rates (in revenue and earnings) to continue at high rates for quite a while.
  • At 18x EV/EBITDA, are the valuation of this group reasonable enough to expect that the stocks, on average, can generate double-digit annualized returns over, say, the next 5-10 years?

This Week’s Best Investing Reads 08/3/2018

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  • Here is a list of this week’s best investing reads:
  • This week’s best investing research reads:
  • This week’s best investing podcasts:

TC Pipelines MLP – Q2-2018 analysis – post-FERC

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  • As a result, they dropped distributions from $4/unit/year (about US$292 million) to $2.60/unit/year (about US$190 million).
  • TCP’s MLP units were trading at about $48 before the FERC announcement.
  • While there was an economic substance to the reduction in unit price (the FERC announcement did have a genuine impact on future distributable cash flows), the impact to the unit price was overblown (perhaps due to inflammatory language by the parent saying that TCP was “non-viable” and a sudden fear that they would not be able to obtain credit, etc.

5 Undervalued Companies for the Defensive Investor Near 52 Week Lows - August 2018

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There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected the five undervalued companies reviewed by ModernGraham trading closest to their 52 week low. Each of these companies has been determined to be suitable for the Defensive Investor according to the ModernGraham approach.

Bombardier – profit curve finally on upside

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  • Bombardier reported their quarterly results today.
  • They’re slowly digging themselves from the financial gravesite a couple years ago – reporting $70 million in accounting profits, and that makes $114 million for the half.
  • This doesn’t quite translate into cash positive results, but they should achieve cash flow positivity in 2019 and beyond, once all of the C-series related expenditures are consumed and happily handed to Airbus.

July Dividend Income Report

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  • I decided to invest 100% of this money into dividend growth stocks .
  • Going forward, we think ATD will continue its growth by this acquisition strategy.
  • In August, I expect to receive about $250 in dividend.

TAM Stock Screener – Undervalued RMR Group Inc (NASDAQ: RMR)

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  • Therefore, RMR has a net cash position of $276 Million (cash minus total debt).
  • If we move over to the company’s latest income statements we can see that RMR has $252 Million* in trailing twelve month operating earnings which means that the company is currently trading on an Acquirer’s Multiple of 5.28, or 5.28 times operating earnings.
  • The company has a strong balance sheet with a net cash position of $276 Million and zero debt.

TAM Stock Screener – Stocks Appearing in Greenblatt, Gabelli, Grantham 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.
  • Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and Howard Marks.
  • From January 2, 1999 to November 29, 2017, the All Investable Stock Screener generated a total return of 6,765 percent, or a compound growth rate (CAGR) of 25.0 percent per year.

Alexander Roepers: Why Disciplined Investing Trumps Big Headlines

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  • The firm also runs a long / short strategy, where Roepers will make carefully-sized short trades.
  • AR: There’s another thing that differentiates Atlantic.
  • The company was about to split the business and appoint the CEO of the aerospace business as the head of the whole company.

A quick comment on the Herbalife results

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  • If Herbalife is (as I argue) a true social support network profits will still eventually follow volumes.Herbalife has for as long as I know used a consistent measure of volume - the volume point.
  • When volume points fell as the company implemented the changes demanded by the Federal Trade Commission those were real falls in volume.And when volumes rose this quarter they were also real changes in volume.

Genworth MI Q2-2018: Steady as it goes

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  • This quarterly report could be classified as “more of the same” as the previous quarters, exhibiting low loss ratios (14%, with the company decreasing guidance to the 10-20% range), with a slight increase in delinquencies and losses on claims.
  • As short term rates rise, this interest rate swap should continue to pay off further – I suspect another percent or so and they’ll close it.
  • Not surprisingly, this is why the stock is at the highest point it has ever been.

A Winning Investment Strategy

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