With the markets hitting new all-time highs in recent weeks, I want to point something out that is literally true: Not a single investor in today’s market practicing legitimate buy and hold in a low-cost index fund has ever lost money. Not one.
If you bought at the top of the dot-com bubble in 2000, you’re ahead. If you bought at the top in 2007, you’re ahead. If you bought the day before 9/11, or just before we all learned that Wall Street was a lit fuse, you are ahead.
That’s an extraordinary statistic, isn’t it?
It’s even more extraordinary when you realize how few investors it applies to. Analytics firm Dalbar gathered data on how the average stock fund investor performed from 1990 to 2010, and compared it to the market index. The results are unsurprising, but thoroughly depressing:
There are several reasons for this, but the big one is simple. Most investors are not long-term buy-and-holders. They lack the patience and require the thrill of something more. Either they are convinced of their ability to time the market, which usually leads to dismal returns, or they are emotional pendulums, buying at the top and selling out at the bottom of markets, which always leads to dismal returns.
5 Best Information Technology Stocks To Own Right Now: Vail Resorts Inc. (MTN)
Vail Resorts, Inc., through its subsidiaries, operates resorts in the United States. The company operates in three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates eight ski resort properties, including the Vail Mountain, Breckenridge Ski, Keystone, Beaver Creek, Heavenly Mountain, Northstar, Kirkwood Mountain, and Canyons resorts; and two urban ski areas, such as Afton Alps and Mount Brighton Ski areas, as well as provides ancillary services, primarily ski school, dining, and retail/rental operations. Its resorts offer various recreational activities comprising skiing, snowboarding, snowshoeing, snowtubing, sightseeing, mountain biking, guided hiking, children’s activities, and other recreational activities, as well as ski and snowboard lessons, equipment rental and retail merchandise services, dining venues, and private club services. This segment also leases its owned and leased commercial space; and provides real estate brokerage services. Th e Lodging segment owns and/or manages a collection of luxury hotels under the RockResorts brand, and other lodging properties; various condominiums located in and around the companys ski resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates approximately 5,100 owned and managed hotel and condominium rooms. The Real Estate segment owns, develops, markets, and sells real estate properties in and around the companys resort communities. Vail Resorts, Inc. was founded in 1997 and is based in Broomfield, Colorado.
- [By Marc Bastow]
Ski lodging and operations holding company Vail Resorts (MTN) raised its quarterly dividend 100% to 41.5 cents per share, payable April 16 to shareholders of record as of April 1. That increase ties FAF for the biggest increase on this week’s list of dividend stocks.
MTN Dividend Yield: 2.37%
- [By Laura Brodbeck]
Notable earnings released on Wednesday included:
Williams-Sonoma, Inc (NYSE: WSM) reported fourth quarter EPS of $1.38 on revenue of $1.47 billion, compared to last year’s EPS of $1.34 on revenue of $1.41 billion. Express, Inc (NYSE: EXPR) reported fourth quarter EPS of $0.57 on revenue of $715.90 million, compared to last year’s EPS of $0.75 on revenue of $728.71 million. Vail Resorts, Inc. (NYSE: MTN) reported second quarter EPS of $1.60 on revenue of $452.70 million, compared to last year’s EPS of $1.65 on revenue of $422.45 million. Krispy Kreme Doughnuts, Inc. (NYSE: KKD) reported fourth quarter EPS of $0.12 on revenue of $112.70 million, compared to last year’s EPS of $0.09 on revenue of $118.14 million.
- [By Jeremy Bowman]
Finally, shares of Vail Resorts (NYSE: MTN ) were taking a spill, down 3.4%, as a lack of snow in the Lake Tahoe region put a dent in earnings during the all-important winter ski season. Earnings per share fell from $1.65 to $1.60, missing estimates of $1.88, while revenue increased 7% to $452.7 million, below the consensus at $471.2 million. Separately, Vail announced it was doubling its quarterly dividend to $0.415, giving investors a yield of 2.4%. Considering the unpredictable nature of the weather and therefore earnings for Vail, investors may want to overlook the bottom-line miss for now and take solace in the generous dividend hike.
- [By Laura Brodbeck]
Notable earnings releases expected on Wednesday include:
Williams-Sonoma, Inc (NYSE: WSM) is expected to report fourth quarter EPS of $1.36 on revenue of $1.43 billion, compared to last year’s EPS of $1.34 on revenue of $1.41 billion. Express, Inc (NYSE: EXPR) is expected to report fourth quarter EPS of $0.59 on revenue of $722.02 million, compared to last year’s EPS of $0.75 on revenue of $728.71 million. Vail Resorts, Inc. (NYSE: MTN) is expected to report second quarter EPS of $1.87 on revenue of $471.16 million, compared to last year’s EPS of $1.65 on revenue of $422.45 million. Krispy Kreme Doughnuts, Inc. (NYSE: KKD) is expected to report fourth quarter EPS of $0.13 on revenue of $119.59 million, compared to last year’s EPS of $0.09 on revenue of $118.14 million.
5 Best Information Technology Stocks To Own Right Now: Value Line Inc (VALU)
Value Line, Inc., incorporated on October 29, 1982, is engaged in producing investment periodicals and related publications and making available copyright data, including certain Ranking System and other information, to third parties under written agreements for use in third-party managed and marketed investment products. The Company operates in two segments: investment periodicals and related publications. During the fiscal year ended March 31, 2013 (fiscal 2013), the Company’s Wholly-owned operating subsidiaries include Value Line Publishing LLC, Vanderbilt Advertising Agency, Compupower Corporation (CPWR) and Value Line Distribution Center (VLDC). The Company markets under brands including Value Line, the Value Line Logo, The Value Line Investment Survey and The Most Trusted Name in Investment Research.
Investment Related Periodicals and Publications
The investment periodicals and related publications offered by Value Line Publishing LLC (VLP ) covers a spectrum of investments, including stocks, mutual funds, options and convertible securities. The services generally fall into four categories include Comprehensive reference periodical publications; Targeted, niche periodical newsletters, and Current and historical financial databases. The services (The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus) provide both statistical and text coverage of a number of investment securities, with a focus placed on Value Line’s research, analysis and statistical ranks. The Value Line Investment Survey is the Company’s premier service, published each week and covering approximately 1,700 stocks.
The newsletters (The Value Line Special Situations Service, The Value Line Fund Advisor, The Value Line Convertibles Survey and The Value Line Options Survey) provide information on securities. The Company offers online versions of its products at the Company’s Website, www.valueline.com. T! he Value Line Investment Survey is an investment periodical research product providing both timely articles on economic, financial and investment matters and analysis and ranks for equity securities. The Value Line Investment Survey is an investment periodical research product providing both timely articles on economic, financial and investment matters and analysis and ranks for equity securities. The Value Line Investment Survey – Small and Mid-Cap is an investment research product that provides short descriptions of and data for approximately 1,800 small and medium-capitalization stocks.
Value Line Investment Analyzer is a menu-driven software program with filtering, ranking, reporting and graphing capabilities utilizing over 350 data fields for range of industries and indices and for the approximately 1,700 stocks covered in VLP’s publication, The Value Line Investment Survey. Value Line Investment Analyzer allows subscribers to apply more than 60 charting an d graphing variables for comparative research. Value Line Mutual Fund Survey for Windows is a monthly CD-ROM or Internet product with weekly Internet updates. The program features powerful sorting and filtering analysis tools. It includes features, such as style attribution analysis, a portfolio stress tester, portfolio rebalancing, correlation of fund returns and hypothetical assets. For the Company’s institutional customers, Value Line offers both current and historical data for equities, mutual funds, exchange traded funds (ETFs), and convertibles.
Value Line’s Fundamental DataFile I contains fundamental data (both current and historical) on approximately 6,400 publicly traded companies that follow United States generally accepted accounting principles (GAAP). Estimates and Projections DataFile offering contains the estimates from Value Line analysts on approximately 1,700 companies. Data includes earnings, sales, cash flow, book value, margin, and other pop ular fields. Projections are for the future one year, three ! year and ! five year periods. The Value Line Mutual Fund DataFile, covers more than 20,000 mutual funds with up to 20 years of historical data with more than 200 data fields. The Mutual Fund DataFile provides monthly pricing, basic fund information, weekly performance data, sector weights, and many other popular mutual fund data fields. The Value Line Research Center provides on-line access to select Company investment research products covering stocks, mutual funds, options and convertible securities, as well as special situation stocks.
Copyright Data Fees Programs
The Company has copyright data, which include certain ranking system information and other information used in third party products, such as unit investment trusts, variable annuities, managed accounts and exchange traded funds, which it distributes under copyright data agreements. The Company’s primary copyright data products have been structured as unit investment trusts, ETFs, annuity product s and other types of managed products.
Investment Management Services
The Company through its wholly-owned subsidiary ESI, was the distributor for the Value Line Funds. State Street Bank is the custodian of the assets of the Value Line Funds and provides them with fund accounting and administrative services. Shareholder services for the Value Line Funds are provided by Boston Financial Data Services, an affiliate of State Street Bank.
- [By Geoff Gannon]
If a company has an at risk business, it can allocate capital to other areas. Many successful companies no longer engage in the business they started in. If American Express (AXP) stayed in its original business, it wouldn’t be around today. The same is true of IBM, MMM, and BRK.B. Some companies choose to pay large dividends or buy back stock while the business is failing rather than allocating capital into a different industry. Let’s look at Value Line (VALU). Over the last 10 years, Value Line has paid out about 85% of the company’s current market cap. It’s a dying business. It had a decision to make. It could allocate capital to new areas inside the corporation, it could pay dividends, or it could buyback stock. It chose to pay dividends.
- [By Geoff Gannon] be cheap enough. It was an issue of Warren Buffett being confident enough to invest in IBM.
By the way, let’s look at IBM’s past record:
10-Year Average Return on Assets: 10.3%
10-Year Annual Sales Growth: 2.8%
10-Year Annual Asset Growth: 1.9%
As you can see, IBM isn’t much of a growth company. But that doesn’t mean the shares can’t be growth shares. IBM has improved margins and bought back stock. That has led to a 20% annual increase in earnings per share compared to just a 3% annual increase in total revenue.
So can we answer the question of why Warren Buffett is interested in companies like IBM and Norfolk Southern (NSC) rather than Hewlett-Packard and Value Line?
Well, Value Line is obviously too small an investment for Buffett. But we’re using it as a stand in for all the publishers Buffett once loved but now shuns.
Buffett is a return on investment investor. He isn’t exactly a growth investor or a value inve stor – if by growth we mean total revenue growth and if by value we mean the company’s value as of today.
Buffett wants to compound his money at the fastest rate possible. So he looks at how much of the company’s sales, assets, etc. he is getting. Basically, he looks at a price ratio. And then he looks into the company’s return on its own sales, assets, etc. When you take those two numbers together you get something very close to a rate of return.
The last part you need to consider is the change in assets versus the change in sales (and earnings). Does the company need to grow assets faster than earnings?
Or – like See’s Candy – can it grow sales a little faster than assets?
Let’s take a look at Norfolk Southern as a good example of the kind of railroad Buffett would own – if he didn’t own all of Burlington Northern.
10-Year Average Return on Assets: 4.9%
10-Year Annual Sales Growth: 6.0%
10 -Year Annual Asset Gr
5 Best Information Technology Stocks To Own Right Now: San Juan Basin Royalty Trust (SJT)
San Juan Basin Royalty Trust (the Trust) is an express trust created by the San Juan Basin Royalty Trust Indenture, between Southland Royalty Company (Southland Royalty) and The Fort Worth National Bank. The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty (Royalty Income), to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Royalty conveyed to the Trust was carved out of Burlington Resources Oil & Gas Company LP’s (Burlington) working interests and royalty interests in certain properties situated in the San Juan Basin in northwestern New Mexico.
Burlington is the principal operator of the Underlying Properties. A percentage of the Royalty Income is attributable to the production and sale by Burlington of natural gas from the Underlying Properties. The Underlying Properties are primarily gas producing properties. The Und erlying Properties consist of working interests, royalty interests, overriding royalty interests and other contractual rights in 151,900 gross (119,000 net) producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico and 4,015 gross (1,158.5 net) wells. Gas produced in the San Juan Basin is sold in both interstate and intrastate commerce. Gas production from the properties totaled 32,580,756 million cubic feet (Mcf), during the year ended December 31, 2012. Gas produced from the Underlying Properties is processed at one of the five plants: Chaco, Val Verde, Milagro, Ignacio, and Kutz, all located in the San Juan Basin. Gas produced from the Underlying Properties and processed at Kutz is being sold under three separate contracts with Pacific Gas and Electric Company (PG&E), Shell Energy North America (US), LP (Shell) and New Mexico Gas Company, Inc. (NMGC).
- [By Rich Duprey]
San Juan Basin Royalty Trust (NYSE: SJT ) announced yesterday its July monthly distribution of $0.080643 per unit, based principally upon production during the month of April.
5 Best Information Technology Stocks To Own Right Now: Controladora Vuela Compania de Aviacion SAB de CV (VLRS)
Controladora Vuela Compania de Aviacion SAB de CV (Volaris Aviation Holding Company) is a Mexico-based company principally engaged in the airline passenger transportation industry. The Company is a law-cost carrier airline. Controladora Vuela Compania de Aviacion SAB de CV offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. The Company utilizes such aircraft as the Airbus A319 and A320 families, among others. The Company has such subsidiaries as Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV, Concesionaria Vuela Compania de Aviacion SAPI de CV, Deutsche Bank Mexico SA Trust 1484, among others. Advisors’ Opinion:
- [By John Udovich]
When most American investors think of discount airline stocks, they probably think of relatively large capped Southwest Airlines Co (NYSE: LUV) or sort of small cap JetBlue Airways Corporation (NASDAQ: JBLU) rather than small cap Controladora Vuela Co Avcn SA CV (NYSE: VLRS) which owns Volaris – a discount airline serving the Mexican market. However, any investor who has read Benjamin Graham’s Intelligent Investor might want to remember his sage advice about avoiding airline stocks – mainly because airlines were such a new and unproven sector that had yet to make money. But could Controladora Vuela Co Avcn SA CV actually be an airline stock worth owning?
5 Best Information Technology Stocks To Own Right Now: Synovus Financial Corp.(SNV)
Synovus Financial Corp., a diversified financial services and bank holding company, provides commercial and retail banking, financial management, insurance, and mortgage services in Georgia, Alabama, South Carolina, Florida, and Tennessee. Its retail banking services include accepting customary types of demand and savings deposits; mortgage, installment, and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet based banking services; and bank credit card services, including mastercard and visa services. The company?s commercial banking services comprise cash management and asset management services, capital markets services, and institutional trust services, as well as commercial, financial, and real estate loans. It also provides various other financial services, which include the portfolio management for fixed-income securities, investment banking, the execution of securities transac tions as a broker/dealer, and the provision of individual investment advice on equity and other securities; trust services; mortgage services; and financial planning services. Synovus Financial Corp. was founded in 1888 and is headquartered in Columbus, Georgia.
- [By John Maxfield]
Given that you clicked on this article, it seems safe to assume you either own stock in Synovus Financial (NYSE: SNV ) or are considering buying shares in the near future. If so, then you’ve come to the right place. The table below reveals the nine most critical numbers that investors need to know about Synovus stock before deciding whether to buy, sell, or hold it.
- [By Robert Eberhard]
Synovus Financial (NYSE: SNV ) throws its hat into the earnings ring early Tuesday, and investors are facing a big question: Will CEO Kessel D. Stelling and crew deliver good news? Or should investors be wary of less than impressive results?
- [By Robert Eberhard]
Much-maligned regional bank Synovus Financial (NYSE: SNV ) reported first-quarter earnings this morning, and it pretty much went as expected. With consensus estimates pegging the Georgia bank at $0.02 earnings per share, Synovus didn’t disappoint and met that number, and the stock has risen in trading today.