Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
Positive Prognosis for Pfizer’s Powerful Portfolio of Patents
• Developer of one of the key COVID-19 vaccines.
• A long history of fruitful partnerships.
• Massive R&D budget that frequently innovates new products.
• Solid dividend yield of 4% and modest growth.
• Low valuation leaves room for capital appreciation.
• Massive development pipeline, with 95 products in development.
Novel Drug Pipeline Expanding for Novartis
• Extensive portfolio of drugs in development.
• Modest growth, with global reach.
• Acquisition of promising drug candidates.
• Flagship drugs do not begin to expire until the late 2020s.
Merck Advances Mean a Bright Future for All
• 130 years of experience in the United States.
• A strong list of patents spanning into the late 2020s.
• Oncology and Vaccine breakthroughs.
• Focusing on fewer products poised for growth.
• Dividend Yield of 3.3%
Gold Fields Harvests a Golden Cornucopia with Salares Norte Project
• Powerful production growth to drive dividend higher.
• Cashflows increase dividend payout ratio to over 30% of earnings.
• Gold output expected to jump by 405kOz a year when the Salares Norte project comes online in FY2023.
• Investments to extend longevity of mines in Ghana and Chile help maintain production.
• Bonus production on the probable reopening of closed Philippine mine.
• Socially and environmentally responsible leader in the mining sector.
• Socially and environmental management drives efficiencies in both physical and human capital thus driving improved profitability and revenue growth.
Alibaba’s Phenomenal Growth and Compelling Nominal Valuation Create an Opportunity for Investors
• Leading online retailer in China which continues to grow rapidly.
• Explosive growth driven by growing middle class and increasing digitalization of Chinese economy.
• Leveraging its e-commerce base to expand into traditional brick-and-mortar retail.
• A dominant force in cloud computing and logistics in China.
Toyota Charges into the Future with a Jolt from Electric Sales
• Diverse plans for the future of traditional and green vehicles.
• Fantastic financial health and a history of innovative consumer success.
• Plans spanning decades involving environmental and manufacturing pledges.
• Massive product depth and reach, with brand recognition spanning the entire globe.
Kimberly-Clark’s Products are a Global Consumer Staple
• Compelling Valuation and 3.5% Dividend Yield
• The top seller in 80 countries, with products sold in over 175.
• Global manufacturing and distribution capacity.
• ESG initiatives to improve the lives of 1 billion people.
• A long history of innovation in a traditionally low R&D sector.
• Weakness post COVID demand surge is opportunity.
Trulieve’s Proposed Acquisition set to Accelerate Growth
• Trulieve dominates the Florida cannabis market and is the second-largest in the United States.
• Legalization is growing the market exponentially.
• Banking prohibitions are set to be reduced allowing for lower taxes and more efficient financing.
• Greenfield expansion opportunities with permits in 3 states (MA, CT, WV).
• Profitable revenue growth provides capital for expansion and acquisition. Growth is sustainable.
• Most profitable company in the sector.
Landstar Continues to Deliver, Hauling in Returns
• Landstar is a free cash-generating growth machine.
• Asset light network of truckers and agents drives high returns.
• Connects trucking services with shipping customers.
• Innovative system to help maximize the utility of those on the network.
• Estimates for 2022 and 2023 need to be increased which should drive stock performance.
Antero Midstream’s Impressive 9% Yield is Set to Grow
• Antero is set to grow its already impressive 9% yield.
•Incremental volumes over existing infrastructure will cause free cash to explode.
• We see the likelihood that that dividend will be 25% higher in 5 years.
• Dividend growth and revaluation should drive double-digit total returns over the next few years.