Last month, Fortune released its list of the top 50 businesspeople of the year. The recognition these CEO’s are receiving shows that the market cares about ROIC, even if many investors aren’t explicitly talking about it.
Why are earnings misstatements so contagious? Learn why these misstatements occur and warnings signs of when a company may be likely to partake in the manipulation of earnings in this special report.
We applaud the Financial Accounting Standards Board's (FASB) latest proposal to change the way leases are reported. The new rules would make only the shortest-term operating leases exempt from being recorded on the balance sheet.
The stock market is giving MCD no credit for the company’s proven track record of value creation and strong growth potential. Instead, the market predicts MCD’s profits will permanently drop. I think it is pretty clear the market’s expectations are too low for MCD. Investors should take advantage.
When McDonalds (MCD) made my Most Attractive Stocks list this month, I must admit I let out a small cheer. This company is one of the better-run businesses in the world. I have long eyed the stock in hopes that it would get cheap enough to dig into and now it has.
When stocks are priced for perfection as SBUX is, they are very risky. Just look at today's 10%+ drop in SBUX shares in a market that is up 1%.
My regular readers know that I have, for a while, warned investors that SBUX was overpriced and due for a correction. See "Get Off the SBUX Bandwagon Before It Crashes".
Be wary of advice from the bandwagon riders. They care more about getting more people in the bandwagon than anything else.
The Starbucks (SBUX) bandwagon is a big one. I am not on it.
Similar to my prior interviews on SBUX, I found it easy to make the bear case for a stock that is as expensive as Starbucks (SBUX). As my regular readers know, when I say "expensive", I back that up with details such as: to justify its $40 stock price (closing price from prior day), SBUX had to grow profits at 10% compounded annually for more than 25 years.
In addition to my stock-brawl interview on Thursday (9/29/11), I have commented to the media on Starbucks (SBUX) many times. Below is a list (with links) to my past opinions/comments on SBUX.