All posts by ZJ

NorthStar’s Decline — Insiders Don’t Care?

NRF imageNorthStar’s decline of 74%? Investors have been right to grouse about the stock performance of NorthStar Realty Finance (NRF). The last year has been abysmal, with the stock down a whopping 74% from its 52-week high. Much of the blame has been leveled at management and its self-serving practices, and investors have attributed management’s lack of alignment to the stock’s performance. Certainly some of the blame is warranted, but insiders still do own significant stakes in NorthStar, and have purchased more recently. Moreover, their ownership, often in the millions and worth potentially at least three times its value today, still provides them a lot of incentive to make NorthStar Realty Finance a winner. Let’s look at the numbers. Continue reading NorthStar’s Decline — Insiders Don’t Care?

Amazon Is Caught in Wall Street’s Trap

AmazonAmazon (AMZN) is a fine business. It’s vacuuming up sales and dominating online retail in a truly extraordinary way. In fact, it’s managed to grow sales by more than 25% over the past five years and by nearly 29% over the last decade. With growth last year of 20%, Amazon just racked up $107 billion in sales versus a meager $8.5 billion in 2005. To put it another way, Amazon’s sales growth of $18 billion in 2015 was more than twice as much as the company sold in total in 2005. That’s the power of compounding. Unfortunately, that hasn’t translated into substantial profits, though last year the company recorded its highest operating profit ever. And this is all contributing to a significant dilemma. Continue reading Amazon Is Caught in Wall Street’s Trap

ConAgra To Spin Off a Frozen Potato Company?

CAGConAgra Foods (CAG) announced in November that it was spinning off Lamb Weston, its business unit focused on frozen potatoes. Yes, frozen potatoes. It sounds funny, but ConAgra is cleaning out the cupboard following a disastrous and ill-advised acquisition of Ralcorp a few years ago and the recent arrival of new CEO Sean Connolly. That decision was “assisted” by Jana Partners, an activist investor that owns 7% of the stock. But those expecting the Lamb Weston spinoff to happen in Fall 2016, as announced, might be disappointed. Continue reading ConAgra To Spin Off a Frozen Potato Company?

Better Buy: NorthStar Realty Finance or NorthStar Realty Europe?

NRF imageIt’s been quite a roller coaster for NorthStar Realty Finance (NRF) and NorthStar Realty Europe (NRE) over the past couple months. Both have plunged as investors have become increasingly concerned about their externally managed structures and, for NorthStar Realty Finance, the sustainability of its dividend. But which is the better buy? In fact, is one a better buy than the other? Continue reading Better Buy: NorthStar Realty Finance or NorthStar Realty Europe?

Now Available: Our Top Dividend Stock for 2016

We’ve just made available our latest report: Our Top Dividend Stock for 2016. This high-yield stock pays out more than 7%, yet is conservatively financed and should grow that payout for years. But no one’s heard of the company — hey, they haven’t even held a conference call! You can access our three-page report on this hidden company by dropping your name in the box at the top of the page.

This is a “buy it and forget it” kind of company that should be able to grow for years under the execs that made another company a stunning success over the last two decades. Now they’re back to do it again with a smaller company that they can grow quickly. I estimate the stock is worth 30% more than it’s trading for today, and a strong growth plan should lead to years of gains. We expect the management team to continue the solid work it’s already undertaken and to drive strong double-digit annual returns for years.

Intrawest Tender Offer Sends Stock Soaring

intrawest2Intrawest (SNOW) joins the ranks of the many companies participating in a tender offer. The company is offering to purchase up to $50 million of its stock, or between 11% and 12.3% of its outstanding shares, depending on the purchase price. It’s offering to buy at a price between $9 and $10 per share. With the stock now at $8.50 and bouncing on the news, there’s a chance of only a little risk-free profit here, however. So for those investors looking for a quick buck and who didn’t already own the stock, it’s probably better to move on. But the Intrawest tender offer does have my favorite provision for small shareholders, the odd lot priority. Continue reading Intrawest Tender Offer Sends Stock Soaring

How You Just Missed An Easy $1,000+ On This Take Private

kcl2955Did you get to take advantage of the recent take private situation at Kansas City Life Insurance (KCLI)? I provided all the details on the situation in a special free report and in multiple articles to readers of this site. Anyone could have taken advantage of the company’s decision to go private and earn $1,000 – $1,250 at a very attractive and quick return. In many cases, investors stacked this special situation and bought the stock in multiple accounts. With such a huge spread, it wouldn’t have been difficult to pocket $10,000 in as short as a week. Continue reading How You Just Missed An Easy $1,000+ On This Take Private

Scholastic Spells Out Tender Offer

ScholasticScholastic (SCHL) joins the ranks of the many companies participating in a tender offer. The company is offering to purchase up to $200 million of its stock, or between 15.3% and 16.5% of its outstanding shares, depending on the purchase price. It’s offering to buy at a price between $37 and $40 per share. With the stock now at $38.69 and bouncing on the news, there’s no chance of a risk-free profit here, however. So for those investors looking for a quick buck and who didn’t already own the stock, it’s probably better to move on. Unfortunately, the tender offer does not have my favorite provision for small shareholders, the odd lot provision. Continue reading Scholastic Spells Out Tender Offer

New Senior Joins the Tender Offer Parade

New SeniorNew Senior Investment (SNR) joins the ranks of the many companies participating in a tender offer. The company is offering to purchase up to $30 million of its stock, or between 3.5% and 3.9% of its outstanding shares, depending on the purchase price (and can up it by another 2% of shares if they want). It’s offering to buy at a price between $9 and $10 per share. With the stock now at $9.91 and bouncing on the news, there’s no chance of a risk-free profit here, however. So for those investors looking for a quick buck and who didn’t already own the stock, it’s probably better to move on. But the tender offer does have my favorite provision for small shareholders, the odd lot provision. Continue reading New Senior Joins the Tender Offer Parade

Insperity Announces Tender Offer

InsperityInsperity (NSP) joins the ranks of the many companies participating in a tender offer. The company is offering to purchase up to $125 million of its stock, or between 10.3% and 11.8% of its outstanding shares, depending on the purchase price. It’s offering to buy at a price between $43.50 and $50 per share, a relatively wide bid range. With the stock now at $46.20 and bouncing on the news, there’s no chance of a risk-free profit here, however. So those investors looking for a quick buck and who didn’t already on the stock, there’s less chance of a risk-free profit here. But the tender offer does have my favorite provision for small shareholders, the odd lot provision. Continue reading Insperity Announces Tender Offer