Posts by Building Benjamins
Big 7.7% Dividend Yield for Undervalued Stellantis
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.
Economic and Market Review February
Economic and Market Review February 28, 2023 Monthly Summary Inflation worries persisted in February as government data revealed stubbornly elevated prices for food and energy. As a result, the Federal Reserve’s policy on additional rate increases continues to bombard the equity and bond markets. The Fed’s concern is that it might relent too soon in…
Read MoreVideo: 8 Compelling Energy Stocks. SPR (Strategic Petroleum Reserve) Reversing Soon. Russian Oil Sales. LNG.
PR (Strategic Petroleum Reserve) depletion is ending. The US is draining this reserve by about 700,000 barrels per day. Eventually, this will need to be replaced and could increase demand by 700,000 to 1,000,000 barrels a day as the SPR is refilled. A possible swing in the supply-demand balance of 1.4 to 1.7 million barrels per day. This is significant for commodity pricing when one looks at the US demand of 19-20 million barrels per day.
Read MoreVideo: Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Global Payments Unloved and Undervalued
• Movement toward B2B payments, a historically under-penetrated sector for payment processors.
• Strong background for growth in megatrends, 15% 5-year-CAGR expected for eCommerce.
• #1 player in card issuance, top 5 in payment processing globally.
• Expecting 6% company-wide revenue growth in 2023, and 15% growth in merchant solutions.
Video: 120 Consecutive Years of Dividends for National Fuel Gas (NFG). An attractive pullback from $76 high.
• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as stock has pulled back from $76.
120 Consecutive Years of Dividends for National Fuel Gas
• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as the stock has pulled back from $76.
Video: Fed Funds Rate Heading to 5.25% and Staying High Longer
Fed Funds Rate Heading to 5.25% and Staying There Longer. Inflation, QT (Quantitative Tightening), Debt Ceiling are all intertwined in a tangled web and discussed. In our opinion, the problem is compounding upon itself and will eventually lead to a Fed pivot and monetization of the debt.
Read More4.2% Dividend Yield and 7-10% Growth for Comstock Resources
• 4.2% dividend yield.
• Growing production reached a record high of 1,400 MMcf/day.
• Sustainable EPS and FCF (Free Cash Flow) growth.
• Lowest-in-the-industry cost structure which helps generate 80% EBITDA margins.
• Huge FCF growth of 218% to $286 million for 3Q22.
• Delevering program to reduce Debt-to-EBITDA to 0.9x.