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Investing Topics: Value Investing

Dividend Cuts: The Best of Times and the Worst of Times

By Roger S. Conrad on Apr. 21, 2014

The aftermath of a dividend cut is always an emotional time, especially for investors who own the stock in question. But if you can keep a level head and evaluate the company’s proposed turnaround effort, you can find deep-value plays poised for big returns—a rarity in a five-year-old bull market.

Low Expectations = Lofty 2014 Returns

By Roger S. Conrad on Apr. 5, 2014

We run through the first quarter’s biggest winners and biggest losers, while revisiting the investment themes that should outperform in 2014.

Buffett Still Eyeing Utilities

By Roger S. Conrad on Apr. 5, 2014

As a long-time shareholder of Berkshire as well as many utilities, I’m encouraged. I’m skeptical of some of the names being floated as MidAmerican’s next potential targets. But the feature article highlights several companies that fit the mold of NV Energy and PacifiCorp, which Berkshire bought in March 2006 from the former ScottishPower.

MidAmerican earned $1.47 billion in 2013 as one of Berkshire’s “Powerhouse Five” non-insurance businesses. That was approximately 7.5 percent of the company’s overall profit, a share that will rise to around 10 percent in 2014, thanks to a full year of owning NV Energy.

Even after the next acquisition, electric utility assets will be less significant to Berkshire’s fortunes than insurance, or even railroads (20 percent of profits). But there are two clear takeaways from Mr. Buffett’s continuing interest in the power sector.

First, MidAmerican is likely to buy another utility this year, handing investors windfall gains. Second, there are regulated electricity assets that still meet the criteria of the world’s most successful value investor.

Stocks To Watch

By Roger S. Conrad on Mar. 31, 2014

Every portfolio has winners and losers. The key is knowing when to let the best performers run, and cut the worst loose.

Forget T-Mobile: Telecom Is Still for Spenders

By Roger S. Conrad on Mar. 1, 2014

The massive loss T-Mobile USA (NSDQ: TMUS) reported this week hasn’t slowed the hyperactive tweeting of its CEO John Legere. Nor apparently has the news scared off his groupies on Wall Street, though that may have more to do with continuing takeover speculation.

Keystone XL: Where It Matters

By Roger S. Conrad on Feb. 22, 2014

The uncertainty surrounding the cross-border leg of TransCanada Corp's Keystone XL pipeline hasn't diminished the company's growth prospects. We examine the investment opportunities behind the controversy.

Squeezing The Yield Shorts

By Roger S. Conrad on Feb. 8, 2014

Not every buy and hold investor has the savvy and steady temperament to be as successful as Warren Buffett. Similarly, not every short seller is insightful and nimble enough to match Jim Chanos’ storied success.

Returning To Dividend Growth

By Roger S. Conrad on Feb. 7, 2014

In 2013, the Alerian MLP Index gained 27.6 percent. Energy Transfer Partners (NYSE: ETP) did much better at 43.4 percent, thanks to restoring regular quarterly distribution increases.

Solid January

By Roger S. Conrad on Feb. 4, 2014

As goes January, so goes the year. That old Wall Street adage doesn’t bode well for most of the stock market.

5 Forecasts for Income Investors

By Roger S. Conrad on Jan. 10, 2014

Wall Street’s January ritual is to roll out “new” investment strategies. This year, fund manager Bill Gross has proclaimed the end of a 30-year bull market for bonds. So it’s no great surprise income advisors further down the food chain are pushing investors to adjust portfolios for higher interest rates.

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ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b