Saturday, July 19, 2014

High Yield Reads - 7/19/14

Summary of recent stories of interest, sometimes enduring, to investors:

  • Two good pieces in Barron's this week first up - Quite Contrary. I am always struck by virtually every fund manager and finance pro that I see interviewed characterizes themselves as "contrarian." Pretty sure for that to be valid the number needs to be below 50%. The Barron's story sums up today's conundrum well - "So when everyone appears to be a contrarian, what's a stockpicker to do? Perversely: Follow the consensus view"
  • The Worst May Be Over at IBM - IBM is a company with great fundamentals, R&D, and best of all a fantastic score on Todd Wenning's Dividend Compass. its also a hated stock selling for less than 10 times earnings. Personally, I agree with Buffett and see a lot to like at IBM. They've been beaten up by the market due to Cloud and Mobile trends, but that's missed a lot of their pluses (which I will cover in a future post). On top of that, this week the Apple-IBM partnership puts IBM in a great position, best in class back end (Websphere, Mainframe) for the best in class front end (Apple). Smart deal right out of Ricardo

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