I just posted my analysis of a stock that I believe is wildly undervalued, trading at a valuation of only 8x normalized earnings. It is an incredibly cash heavy company that has over 40% of its market cap in cash, and it has grown profits over every five-year rolling period since the date of its IPO. I argue that it is the most undervalued stock among well-known publicly traded stocks in the American stock market at this time.
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I have long been intrigued by profitable businesses that cut their dividends. This is because many investors fail to realize that the recovery characteristics of a business change for the better when a business in distress is suddenly able to retain profits to rebuild rather than shipping out cash to shareholders due to dividend expectations that were created by declaration of the Board of Directors in many years past.
In the case of General Electric, it is a company that is slated to earn $7 billion in profits in 2019. Yes, that is heavily reduced from prior expectations calling for $9 billion in profits in 2019 before the company revealed that it had a $26 billion shortfall to make up due to poor estimates with its long-term care insurance arm. And yes, that figure was well below the amount of dividends that GE was paying out just a few years … Read the rest of this article!
There are three character traits that you can possess that will make sure you never become a financially independent investor that lives fully on the income generated by his business holdings.
First, you need to be someone who has absolutely no perseverance skills whatsoever. When you spend a couple months saving $1,000 and only see $7.50 in dividend checks, you should reach the conclusion that the system is rigged and completely give up. Instead of realizing that you now own something that is going to automatically increase in income by 7-11% each year, and instead of working hard to add to the pile, you should conclude that any objective that cannot be reached within a year is not worth, and then toss your dream to the side simply because it could not be achieved immediately.
Secondly, if you truly want to never become successful and you … Read the rest of this article!
The general rule in all fifty states is that, in order for a Last Will and Testament to be legally valid, the will must be signed by at least two witnesses. Although I recommend that all readers consult an attorney that can make sure that wills and other legal instruments follow the proper procedures, the fascinating storylines and questions tend to occur when people take matters into their own hands and exercise their freedom to ignore convention protocols.
One example is holographic wills, which refer to a will that you handwrite you a sign. It is one of only three exceptions to the standard requirement that you must obtain two witness signatures on the document (the purpose of witnesses is to verify that the testator actually signed the will, and this requirement can be sidestepped when the testator handwrites the will himself because a handwriting expert could determine authenticity in … Read the rest of this article!