There Is Nothing Uniform About UniFirst Corporation’s Profits

UniFirst Corporation (UNF) is one of the nation’s largest providers of uniforms and accessory products to businesses of all types. Today the stock is up strongly because the company beat analyst estimates as earnings jumped approximately 18% year-over-year.  All of their business segments participated with improved margins and profits, leaving the company to raise their[…]

Part Two: The Truth About Earnings and How Forecasting Earnings is the Key to Success

In part one of this two-part series on the importance of earnings I focused on the historical relationship between earnings and market price utilizing cyclical companies to illustrate the validity of my thesis.  In this part two, I am going to focus on how since we learned from the past how important and highly correlated[…]

Apple Does Not Need its Cash to Grow as Much as its Shareholders Need it to Spend

Learning From The Past With all the media attention, most everybody is now aware that Apple (AAPL) has decided to use their prodigious cash hoard by initiating a stock buyback and dividend for the first time in their history.  Regarding the stock buyback, their announcement indicates that they would share their cash holdings by buying[…]

Part One: The Truth About Earnings and How They Drive Stock Values and Shareholder Returns — The Historical Perspective

I want to start this article out with the positioning statement, that I am a fundamental investor, and that I believe in conducting a comprehensive fundamental evaluation on any Company (common stock) that I buy, or for that matter, hold or sell. My own personal core investing philosophy is about investing in businesses and not[…]

5 Dividend Aristocrats With 3-Pronged Profit Potential

. . . . Summary and Conclusions We believe that this list of blue chip companies each represents the opportunity for investors seeking growth of capital and growth of dividend income. As previously stated, we feel that each possesses the opportunity for a three pronged return opportunity. Furthermore, we believe that the current low valuation[…]

Black Hills: Does The Risk Justify The Reward?

. . . . Performance Table: Capital Appreciation and Dividend Income The associated performance results with the earnings and price correlated graph, validates the above discussion regarding the two components of total return: Capital appreciation and dividend income. Dividends are included in the total return calculation and are assumed paid, but not reinvested. When presented[…]

Accenture: No Debt And An Attractive Valuation Make This Dividend Challenger A Strong Buy

. . . . . The Estimated Earnings and Return Calculator Tool is a simple yet powerful resource that empowers the user to calculate and run various investing scenarios that generate precise rate of return potentialities. Thinking the investment through to its logical conclusion is an important component towards making sound and prudent commonsense investing[…]

ADM’s Earnings Growth Slowdown Creates Buying Opportunity

. . . . Performance Table Archer Daniels Midland Co. The associated performance results with the earnings and price correlated graph, validates the above discussion regarding the two components of total return, capital appreciation and dividend income. Dividends are included in the total return calculation and are assumed paid, but not reinvested. When presented separately[…]

Darden Restaurants Won’t Be This Cheap For Long

. . . . Therefore, it logically follows that measuring performance without simultaneously measuring valuation is a job half done. At its current price, which is attractively aligned with its True Worth™ valuation, Darden Restaurants Inc. represents a potential opportunity to invest in a Dividend Challenger at a reasonable price. The important factor is that[…]