Have you ever visited a facebook page about vegans? Fuck, these people are crazy. An impressive
number of beautiful girls are on these pages, but many of them have big
tatoos and don’t seem open at all to another way of seeing things.
That’s like some kind of fucking religion. And not a beautiful religion.
A religion where you have to seek and kill the enemy.
I
understand that there’s a lot of bad things around the industry of
meat. Animals are sometimes badly treaten. Have you seen that they kill
male baby chicken by millions? It’s true. Such irrespect for animal
life. But most of us don’t know about that, so we continue to eat
chicken, meat and all that stuff made of late animals which have been
treated like merchandise. Do you really feel that humanity deserves
respect after that?
OK
for the preaching. But, you see, I’m somewhere in between the crazy
vegan religion and the crazy meat industry. I really like these
hamburgers! Actually, the fact that bugs me the most with veganism is
that they don’t even fucking drink milk and eat cheese. Come on. That’s
like trying to live in another dimension, putting that much restrictions on your alimentation. OK for the meat part, but the eggs, the
cheese, the milk, I think that it’s way too far.
Anyway,
there will be a little more and more of these vegan disciples year
after year. But there’s gonna be even more and more old and fat people
who need a new heart or some intervention to their heart. Because
hamburgers eaters will always surpass pumpkin seeds eaters.
That’s
where Edwards Lifesciences enters (products for heart diseases). In my
opinion, it’s a great company that deserves your attention. It’s
expensive though, but the moat is wide and the numbers are great.
Forward PE : 26
Average PE last 5 years : 30
Annual sales growth last 5 years : 12%
Annual EPS growth last 5 years : 21%
Average ROE last 5 years : 26
Current ROE : 26
Earnings growth next year (estimated) : 12%
Debt : Close to zero
Cash position + receivables: About 7% of the market cap
Earnings predictability according to Value Line : 95%
Dividend and payout : 0%
As luck would have it, I also have three conviction of the moment picks. All three are American companies.
RépondreSupprimer1. PATK
2. SUPN
3. FB
They all have impressive five year graphs/performance, PEG ratio around or below 1, and fairly low next year p/e. Return on Equity is high 20s or low 30s.
I'd love to see more high conviction of the moment picks from all comers. Good luck guys.
Quite often when a corporate entity goes through a restructuring process the price of its equity suffers as the street only cares about next quarter’s earnings. But a strong and honest management team will focus on enhancing shareholder value for the long-term. Like the management team at BrookField Asset Management. That being said I think their real estate limited partnership…Brookfield property Partners LP…sym BPY.UN on the TSX offers extreme value at a bargain price and I think that it is at the tipping point right now…I quote Bruce Flatt from Brookfield’s last quarterly report…
RépondreSupprimer‘Last month, we received shareholder approval to combine the balance of GGP Inc. into Brookfield Property Partners (“BPY”). At closing, later in August, we will complete the last major initiative post the launch of BPY. These initiatives included the privatization of five listed companies, and with all of these now complete, we believe that we are in a strong position to focus our efforts on value enhancements in the business, and on the trading price of BPY. Given the scale of our business, our vast access to institutional capital, and BPY’s now large equity base, BPY has no need to issue additional equity for the foreseeable future. Furthermore, if we continue to trade at discounts to tangible value, we will use our resources to repurchase shares, adding further to its intrinsic value.’
Being a Limited Partnership instead of a corporation it pays a distribution instead of a dividend so it’s not eligible for the Canadian dividend tax credit, that being the case it is best held in a sheltered RRSP where the distributions will not be taxed. Brookfield have had a history of consistently raising this distribution over time…steady as she goes as with everything to do with Brookfield..
Call it "distribution" or call it "dividend... there's no better choice than the Brookfield group of companies if you like to GET PAID for holding stocks.
SupprimerMy turn to present a company: Copart inc (CPRT), a big winner on my portfolio.
RépondreSupprimerCopart offers online auction services to insurance company who wants to liquidate salvaged cars. Their business model is simple. They take the damaged cars from the towing company on behalf of the insurance company, store the cars in a yard and sell it online through an auction system. Copart gets their revenues on fees paid by insurance company on every transaction. Copart has an extensive network of yards through North America, which creates an entry barrier because the t will take time and money to a competitor to develop such a yard network: Copart is also present in Europe and South America.
EPS growth: 19% over five years and 35% over three years
Net margin: 21%. Very good
ROE five years: 28.6%
Debt: 1.5 times annual net income
Forward P/E: 29.5.
I love hearing about these types of companies carving out lucrative niches with a high return on equity.
Supprimer