Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
PayPal Pays for Future with Successful Digital Wallet
• Digital Payment Industry Leader.
• Good management, high customer ratings, and successful strategic acquisitions.
• Successful product launches in 2021 propel Total Addressable Market (TAM) to over $100 trillion.
• As shown by PayPal, an extensive partner network is accepted at nearly every major online retailer.
• Compelling Valuation is given the growth rate and leading competitive position. Price-to-Sales ratio of only 4.0.
Elanco Drives a Herd of Successful Animal Drugs
• Owns 9 of the 40 >$100m in sales “blockbuster” drugs in the animal health market.
• Rapid expansion in China, capitalizing heavily on the global pet boom during the COVID-19 pandemic.
• R&D heavily focused on finding blockbusting novel drugs.
• The spinoff of Eli Lilly was fully completed in 2020.
• Double-digit EBITDA and EPS growth forecast for 2022.
12-13% Dividend Yield. Chesapeake Energy Corporation CHK. Low debt after emerging from bankruptcy.
• 13% dividend yield.
• Strong balance sheet.
• Benefiting from bankruptcy emergence in 2021.
• Natural gas producer with basins in Marcellus and Haynesville.
• Natural gas demand continues to grow with electrical power demand increases.
Southwestern Energy SWN. Cost reduction drives free cash explosion. Low PE of 3.3 poised to expand.
• Incredibly inexpensive at 3.3 times earnings.
• Prodigious free cash generation used to pay down debt.
• Highly levered balance sheet poised to be paid down.
• Natural gas producer with basins in Marcellus and Haynesville.
• Natural gas demand continues to grow with electrical power demand.
• Cost improvements increasing free cashflow.
Big Free Cash and Low 3.3 Price Earnings Ratio
• Very inexpensive 3.3 PE for Southwestern Energy.
• Stock poised to rise dramatically as debt is reduced and balance sheet strengthened thus lowering risk.
• Free cash generation used to pay down debt which will drive PE higher.
• Natural gas demand continues to grow for electricity generation.
• Reductions in drilling costs driving free cash flow higher.
• Expanded footprint by 700 MMcf/d with GEP Haynesville LLC (GEP) acquisition.
13% Expected Dividend Yield for 2022 for Chesapeake
• Dividend yield expected to reach 13% with completion of Chief acquisition.
• Strong balance sheet and asset base.
• Balance sheet benefited from debt write downs during bankruptcy.
• Emerged from bankruptcy in a great position in 2021.
• Natural gas producer with basins in Marcellus, Haynesville, and Eagle Ford.
• Natural gas demand continues to grow as electricity generation increases.
• New management team, post-bankruptcy, with conservative and strong balance sheet and prodigious free cash generation.
Energy Stocks Benefit from Limited Investment in Oil & Gas production. Low supply = Higher price.
• Recovery in Oil and Gas prices and stocks looks sustainable. Stocks still represent a good investment opportunity in our opinion. Energy stocks benefit from limited investment in oil and gas production and development.
Concerns over global warming and greenhouse gas emissions limit capital flows to the oil and gas industry.
• This lack of capital has reduced the amount of new development and production. US drilling activity down thus lowering supply.
• Demand for oil has recovered to 2019 levels and is poised to grow at 3% for the next several years.
• Increased demand has eaten into OPEC’s excess capacity cushion.
• Lower supplies of oil result in higher price. US supplies unusual lack of response to higher price means prices will stay higher longer.
Steady 4.1% Dividend Yield set to Surge in 2023
• 4.1% Dividend Yield is one of the highest in the sector.
• Yield expected to dramatically increase in 2023
• Significant domestic market share, with joint-ventures to take advantage of global growth.
• Intense environmental pledges to be met by 2030.
• Debt reduction and efficiency streamlining campaign.
Steady Dividend set to surge into 2023. International Paper. 3.95% Yield. IP
• Steady Dividend set to surge into 2023 with cost cutting and post 2022 capex surge.
• 3.95% Dividend Yield.
• Box demand growing with nominal GDP.
• Online shopping will continue to drive demand for boxes.
• Free cash surge can be used to raise dividend and repurchase shares.
• Inflation hedge as box price increases can go up with inflation.
Steady, reliable, inflation-protected dividend.
• Opportunity with stock down 24% from its $61.83 high.
Proven Portfolio Manager shares his own personal stock investments to build retirement income and build a family legacy
Benjamin C. Halliburton is faced with the same challenge as you, investing for retirement and building generational wealth. However, he is a professional investor and is going to share his portfolio and trades with you. He is going to help you navigate this investment challenge as he invests in stocks of quality businesses and guides you through the investment process.
Timely Updates and Research
Ben details stocks to own and when to buy them. The ideas here are based on his own portfolio. Ben will update you every time he buys or sells and provide you with the rationale of these moves. We keep you informed on changes in the portfolio as Ben’s research interacts with market opportunities. We will be completely transparent, and you can determine which of Ben’s investment ideas make sense for you. You will learn how a successful equity portfolio manager thinks about companies and investments, and when he buys but as importantly when and why he has decided to sell. We detail our investment philosophy here. Stock Picks to Build Income and Wealth.
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Learn in real time and choose which ideas work for you. This is a great place to build the core of your portfolio. We provide vision among the confusion of the internet and media. Learn about companies before you invest your Benjamins. Learn before you earn.