February 2019 - WStNN.com™ WallStreetNewsNetwork® Stockerblog™ WSNN®

Tailored Wealth Management

by Fred Fuld III

The book, Tailored Wealth Management: Exploring the Cause and Effect of Financial Success by Niall J. Gannon is a guide for those who are interested in increasing their wealth, especially young people who can get a significant mathematical head start.

One of the most interesting chapters was Chapter 2 Average Americans: Stories of “Ordinary” Success, where Gannon gives real life examples of those who started with moderate incomes, such as a janitor, and eventually became multi-millionaires.

Chapter 6 covers the factors that can reduce wealth, and what you can do to avoid those factors.

The book has extensive easy-to-understand tables and graphs as backups for the many theories and recommendations that are discussed in the book.

I recommend Tailored Wealth Management to investors, especially young investors, who are looking to grow their net worth and achieve their financial goals.

Stocks Going Ex Dividend in March 2019

by Fred Fuld III

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

Rocky Mountain Chocolate Factory, Inc. (RMCF)	3/4/2019	0.12	5.55%
Southwest Airlines Company (LUV)	3/5/2019	0.16	1.10%
QUALCOMM Incorporated (QCOM)	3/6/2019	0.62	4.81%
Kimberly-Clark Corporation (KMB)	3/7/2019	1.03	3.53%
Dunkin’ Brands Group, Inc. (DNKN)	3/8/2019	0.38	2.15%
Bed Bath & Beyond Inc. (BBBY)	3/14/2019	0.16	3.94%
Nasdaq, Inc. (NDAQ)	3/14/2019	0.44	2.02%
Las Vegas Sands Corp. (LVS)	3/19/2019	0.77	5.19%
Portland General Electric Company (POR)	3/22/2019	0.363	2.97%
Franklin Resources, Inc. (BEN)	3/28/2019	0.26	3.28%
Wolverine World Wide, Inc. (WWW)	3/29/2019	0.10	1.04%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Cosmetics Stocks are Looking Good

by Fred Fuld III

Did you happen to see what Coty (COTY) did during last several days? You could have bought the stock last week for a little above $7 per share. By Tuesday of this week, the stock jumped to over 11 per share, and increase of over 50%! Not a bad return for just a few days. Of course, it helped that Coty reported better than expected earnings of $0.24 per share versus an estimate of $0.222.

Coty is the New York City based beauty products company, that sells such brands as Burberry, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Lacoste, Marc Jacobs, Miu Miu, philosophy, Stella McCartney, and Tiffany & Co. The stock trades at 18 times forward earnings and pays a very beautiful yield of 4.5%.

Just look through any women’s magazines and you will notice that the cosmetics, makeup, and skincare industry is tremendous. You will probably see 16 pages of ads, mostly for beauty products, before you even get to the table of contents.

Estee Lauder Companies Inc. (EL) has various brands including Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, American Beauty, and Bobbi Brown. The forward P/E ratio is 33 and the yield on the stock is 1.1%. Unfortunately the price sales ratio is a bit high at 4.04. However, diluted earnings per share for the latest quarter were $1.55 per share, up from $0.33 per share a year ago.

Avon Products Inc. (AVP) is a well known network marketing company which sells cosmetics, fragrances, skin care, and toiletries, along with various other products. They recently reported that their first-quarter profits nearly tripled. Avon’s forward P/E ratio is 37. It does not pay a dividend.

Revlon Inc. (REV) sells cosmetics, skincare products, perfume, and other personal care products through mass volume retailers, pharmacies, supermarkets, and department stores. The stock trades at 15.5 times forward earnings, and does not pay a dividend.

L’Oreal Co. ADR (LRLCY), based in Paris, France, is the largest cosmetics company in the world. The company markets such brands as PureOlogy Research, Redken, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Ralph Lauren Fragrances, Maybelline, and numerous others. It has a forward P/E of 29 and a pretty decent yield of 1.7%.

Shiseido Co. Ltd. (SSDOY), based in Japan, is the oldest cosmetics company in the world, founded in 1872. Their products include Pureness, The Skincare, Benefiance, Bio-Performance, Suncare, and White Lucent. The stock trades at 30 times forward earnings and pays a small dividend of 0.5%.

The large conglomerates, such as Unilever NV (UN) and Procter & Gamble Co. (PG), have been excluded, as cosmetics only make up a small portion of their revenues.

Maybe some of these cosmetic stocks can make your portfolio looking a bit more attractive.

Disclosure: Author didn’t own any of the above at the time the article was written.

How to Invest in Valentine’s Day

by Fred Fuld III

There are just a couple days left to shop for Valentine’s Day. Why not give your loved one a Valentines stock, instead of one of the typical ones. The Valentines stocks include those that sell chocolate, jewelry, greeting cards, and gift wrap.

Here is a stock that is not very well know but very gift oriented. CSS Industries Inc. (CSS) markets gift wrap, gift bags, boxed greeting cards, gift tags, tissue paper, decorations, and decorative ribbons and bows. The stock trades at 7.8 times forward earnings, and pays a generous forward dividend yield of about 10%.

Flowers are always popular. 1-800-Flowers.com Inc. (FLWS) is the largest publicly traded company of flowers, plus it markets cakes, cookies, candy, wines, gift baskets, and other goodies for your valentine. The stock trades at 45.9 times forward earnings, and a price to sales ratio of 0.93.

Unless they have an allergy, all valentines like chocolate. The Rocky Mountain Chocolate Factory Inc. (RMCF), based in Durango, Colorado produces and sells various types of chocolate candy including caramels, creams, mints, and truffles. The company was founded in 1981, has over 300 franchise locations. The price to earnings ratio is 21.2. Rocky Mountain pays a very tasty dividend yield of 5.5%.

What valentine doesn’t like jewelry? Something like a Platinum Pear Cut Emerald And Round Diamond Pendant would make a nice gift. The price is only $120,443 and is available through Amazon (AMZN).

Tiffany (TIF), founded in 1837, is one of the largest jewelry companies in the world, with over 60 U.S. stores and numerous international locations. The stock trades at 16.8 times forward earnings. This stock also pays a dividend, with a decent yield of 2.5%.

For more stocks that could increase sales from the Valentine experience, such as candy and chocolate stocks, check out the free lists here at WSTNN.com.

Disclosure: Author did not own any of the above at the time the article was written.

Dirty Words on Wall Street

by Fred Fuld III

It may be hard to believe, but some of the filings that public companies make to the Securities and Exchange Commission actually contain some dirty words. Occasionally, you may find an “F bomb” or an “S bomb” in one of these documents.

Sometimes the word is a typo, sometimes it is quoting from a conversation, and some times the company really means to say it.

The “F” Bomb

EX-10.8 of 10-Q for Grand Canyon Education Inc. (LOPE) has a list of derogatory domain names that it “purchased as a protective measure.”

This one for City National Bancshares looks like it may be the job of a hacker or maybe an attorney who thought he was sending a text to someone at the time.

Here is an example of a filing with a quote of “such blasphemy” that someone said that appears in the Chapman Capital Schedule 13 D from several years ago.

The “S” Bomb

A more recent example is Shopify (SHOP). On its Exhibit 1.1 for the Form 40-F [2016 Annual InformationForm], the “S” word is shown in the Culture & Employees section.

LendingClub (LC) has what appears to be a typo for an occupation on its Form 424B3. Doesn’t sound like a job anyone would want.

These are just a few examples. If you have a lot of free time on your hands, I’m sure you can find more.