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A Classic American Revolver Gets Ready To Spin- Smith & Wesson Set To Spin Off American Outdoor Brands

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  • Smith & Wesson(SWBI)- it’s one of the most storied names in firearms, and, as of June 1, it’s the name not just of a brand, but of a company as well.
  • In preparation for a late summer spinoff, American Outdoor Brands Corporation(AOBC), changed its name to Smith & Wesson Brands, Inc.
  • The American Outdoor Brands name is not… Read More »

July 2020 Portfolio Update

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  • Trey is a private investment portfolio manager for his own personal funds.
  • He used thousands of hours of reading and learning to teach himself to invest and hopes to help other like-minded investors become DIY investors as well.
  • Trey graduated from the University of Texas with a Bachelor of Science degree in Chemical Engineering with a concentration in Engineering Economics and Business Leadership.

Treacherous Markets

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  • I think to buy, you wanna be doing a lot more work.
  • It is hard reading 10 Qs and Ks but if you read a lot of them, you know where you wanna go pretty quickly to see what’s happening.
  • And if any of those three things are a pass, then there’s no balance of any other good things about it that he could learn that will put it back into his funnel.

The Efficacy Of Fundamental Analysis Has Declined

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  • Actually, I have a paper on the accrual anomaly where we show that the accrual economy has essentially disappeared.
  • Some researchers before me showed that one reason is people actually investing in it, and therefore it’s got arbitraged away.
  • He looked at this thing called accrual, simply earnings minus cash flows divided by assets.

Jim Simons: Make A Decision Even If It’s Wrong! Don’t Dawdle.

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  • Q: You once told me that you read a fiction book called The Captain or something like that that was very influential on you as a leader.
  • Make a decision.
  • I make the decision.

One Stock Superinvestors Are Buying Or Holding (19)

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  • As part of the weekly research here at The Acquirer’s Multiple we’re always interested in superinvestors who hold the same stocks that appear in our Acquirer’s Multiple Stock Screeners, based on their latest 13F’s.
  • Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and Howard Marks.
  • Superinvestors who currently hold positions in BNY Mellon include:

Stock Market Trajectory Into Election

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  • In California, the 7 day average of new cases has spiked from 3,357 on June 18 th to 5,556 on June 29 th .
  • We’re just saying if traders are confident Biden will win, they should price it in now.
  • Stock prices are determined by sales growth in the long term.

Mid Year 2020 Portfolio Review

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  • Today, there is less activity but still plenty going on in credit markets.
  • I try not to let the blog influence my investment activity (i.e., buy things because they'd make for an interesting post) but its still in the background a bit, so while I want to post more, apologies if I'm a little more sporadic through this crisis.

Spindletop Oil & Gas Co (SPND): Tons Of Cash, No Debt, and Optionality

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  • If the price trades up to book value, there is 30% upside...
  • Now, I have no clue what these assets are worth, but, I am guessing that it is a lot more than $2.12mm, since the company produced oil and gas revenues of $4.63mm, $5.85mm, and $4.49mm in the past few years...
  • tack that on top of the assessed $1.55mm value of the building that has a below market total rent, and you get a value of $2.17mm!

What is a Dividend Trap?

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  • Basically, a dividend trap is a company offering a good yield.
  • You lose 30% on your investment, your income source is cut by 50% and you just don’t know what to do.
  • One thing is for sure, we are all investing in the stock market to make money.

7 Stocks Growing Future Yield With Increased Dividends

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Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that long-term and sustainable high-yield investments are grown over time. This is accomplished by purchasing high-quality dividend investments with a reasonable yield and a long history of growing their dividends, and waiting for the yield on cost to grow.

Below are several companies planting the seeds for future yield by recently increasing their cash dividends...

Uber: Delivering Food and My 4 Seconds of Fame on PBS (not PBS Kids, unfortunately)

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  • In addition to the driver, customer, and Uber, there is a restaurant.
  • Restaurants are complaining because food delivery fees eat most of their profits.
  • (Today about 40% of Uber rideshare drivers are working on Uber Eats, up from 20% pre-Covid.)

Three Dividend Stocks in the News

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Reviewing the list of dividend increases also helps me to identify companies for further research. While I do my fair share of screening on the list of dividend champions, dividend aristocrats, achievers and contenders, I also prefer to look at individual stories. I invest using a bottom up approach, but also try to look at the big picture as well.

Over the past week, there were three companies that raised dividends:

Are Robinhood Investors Buying The Dip? – Here’s The Verdict

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  • Aurora Cannabis Inc (NYSE: ACB) – 458,302 Users Holding – Down 86%.
  • Carnival Corp (NYSE: CCL) – 492,728 Users Holding – Down 65%.
  • Ford Motor Company (NYSE: F) – 926,465 Users Holding – Down 40%.

Dark Matter, And Why It’s Important To Investors

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  • We don’t really know what assessing what the culture looks like from the outside, no different than we don’t know what is happening on the inside of a family from the outside.
  • You have to be a little bit more intellectually honest about like, “How much do you really know about these companies” I think you gotta back off on your certainty a lot because you think you see the entire universe because you did all the work to see the 18%, there’s a whole other 82% potentially that you have no idea the answers to.

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