The Intelligent REIT Investor's Brad Thomas discusses his outlook for real estate and the new class of data REITs.
SPEAKER ONE: Hello and thanks for joining us. My guest today is Brad Thomas. Hi Brad, and thank you so much for being here.
BRAD THOMAS: Glad to be here. Thank you.
SPEAKER ONE: The rates have had sort of a tough second quarter. Most of the returns were down, other than I think in Self-Storage and in the Apartment REITs, but since then they’ve come back a little bit. I think people have been afraid of interest rates; that oh my gosh, the taperings going to end and interest rates are going to go from basically zero to 15% overnight. Probably not going to happen.
BRAD THOMAS: Well, you know, we talk about the market and I like to refer to what Ben Graham referred to as Mr. Market, and I’m not going to tell you to ignore Mr. Market. We obviously have seen the sell-off. I like to call that the taper tantrum and, obviously, we’re seeing Mr. Market has really got a taper tantrum today with REITs. Now the good thing – the silver living, I like to call it, is that REITs today have incredible opportunities in terms of pricing that we’re seeing. I’m not going to argue with the fact that, prior to May 22, when Bernanke first spoke REITs were a pretty big run-up. We’re seeing record highs, all-time highs with a lot of the REIT stocks, and we’re starting to see some pretty high valuations in REITs. So the good thing is today, we’re seeing the REIT market today is almost fairly valued. Most REITs are down to a level that the investor can buy. In fact, now we’ve seen several sell-offs, or several tantrums, as we say, and so, we’re seeing some really good opportunities. I would even argue that there are a number of blue chip REITs that are on sale, and what Ben Graham would say, “bargains.” That’s what we call a margin of safety today in investing so, certainly, I think there’s a great opportunity for investors today to buy very high quality real estate.
Top Gas Utility Companies To Buy Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Dividends4Life]
McDonald's Corporation (MCD) is the largest fast-food restaurant company in the world, with nearly 34,500 restaurants in 119 countries. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 37 consecutive years. Yield: 3.1%
- [By Douglas A. McIntyre]
McDonald’s (NYSE: MCD) public relations department has been working overtime to show that the fast food chain cares about customer health. In September it announced:
Top Blue Chip Companies To Invest In Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Dan Caplinger]
Philip Morris International (NYSE: PM ) will release its quarterly report on Thursday, and projections suggest that it will manage to deliver decent results for investors. But shareholders don't seem convinced about Philip Morris earnings, as they've recently sent the stock down substantially from its May highs.
- [By GuruFocus]
Philip Morris International Inc. (PM) Reached the 52-Week Low of $83.79
The prices of Philip Morris International Inc. (PM) shares have declined to close to the 52-week low of $83.79, which is 15.1% off the 52-week high of $96.73. Philip Morris International Inc. is owned by 31 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Nine reduced their positions.
Top Blue Chip Companies To Invest In Right Now: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Arjun Sreekumar]
What's next for the global LNG trade?
Going forward, however, the rare drop last year is likely to be an anomaly, with the number of countries participating in the global LNG trade set to grow sharply. This year, BG Group forecasts that the global LNG trade will grow by a modest 5.4 million tons, bolstered by exports from Angola -- where Chevron (NYSE: CVX ) recently shipped its first cargo from the Angola LNG plant -- and new terminals in Australia, as well as an increase in imports from Singapore and Malaysia, and an offshore facility in Israel. - [By Ben Levisohn]
Stocks went nowhere today after making back early losses, as Chevron (CVX) and Wal-Mart (WMT) gained, while Visa (V) and Boeing (BA) fell.
REUTERSThe S&P 500 gained 0.03% to 1,868.20, while the Dow Jones Industrial Average fell 0.07% to 16,340.08. Chevron’s 1% gain, which came after being added to the Focus List at Credit Suisse, and Wal-Mart’s 0.8% rise helped balance out�Visa’s 0.5% fall and� Boeing’s 1% drop, which came after UBS cut its price target. Tesoro (TSO) jumped 4.1% to $54.50 after oil prices fell, making the refiner the S&P 500′s biggest winner.
Once again, concerns about China are reputed to have driven early weakness in the stock market. Rhino Trading Partners’ Michael Block expresses his concern about the falling Chinese yuan:
…cheaper Chinese exports could wreak havoc on non Chinese exporters around the world.� The most obvious losers would be South Korean, Japanese, U.S. and European stocks that are heavy exporters to countries other than China…In the U.S., I am concerned about export heavy sectors like autos and steel the most.� Given the weaker yuan and lower Chinese purchasing power, consumer companies selling into China, whether they be luxury goods makers or QSRs, are also ones to avoid here.
The big picture is that this could end up being an issue that affects everyone going into this November.� If a weaker CNY causes U.S. exports to fall and jobs and GDP suffer, you better believe that protectionism becomes a byword going into mid term elections and then beyond that into the 2016 campaign.� �The risk of this escalating into a full scale currency war is the biggest risk that China�� new path may entail.�� And yet I see good reasons for why it will happen.� China may have no choice but to give it a try.� Any questions or comments, please contact me.
Hey, maybe I wasn’t wrong when I wrote about China’s problems hitting t
- [By WALLSTCHEATSHEET]
Chevron is an oil and gas bellwether that provides essential energy products and services to consumers and companies worldwide. The company reported earnings that were lower in 2013 than 2012. The stock has been trading sideways in recent quarters and is now trading near lows for the year. Over the last four quarters, earnings have been decreasing while revenues have been mixed, which has left investors optimistic about recent earnings announcements. Relative to its peers and sector, Chevron has been a poor year-to-date performer. WAIT AND SEE what Chevron does this coming quarter.
Top Blue Chip Companies To Invest In Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Matt Thalman]
When the Dow falls more than 100 points, it's usually easy to find a few losers. This morning, I talked about why American Express, Du Pont, and Caterpillar were all lower;�click here to read about those stocks, or continue reading to learn about�JPMorgan Chase (NYSE: JPM ) , AT&T (NYSE: T ) , and IBM (NYSE: IBM ) .
Top Blue Chip Companies To Invest In Right Now: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Eric Volkman]
It's one of the steadiest dividend payers on the market, and it's continuing to fly level. Colgate-Palmolive (NYSE: CL ) has declared a fresh quarterly common stock dividend, which is to be $0.34 per share, paid on August 15 to shareholders of record as of July 23. That amount matches the firm's previous distribution; this was paid in May. Prior to that, Colgate-Palmolive handed out $0.31 per share.
Top Blue Chip Companies To Invest In Right Now: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Ben Levisohn]
Visa (V) gained 3.1% to $210.81 this week, making it the biggest winner in the Dow Jones Industrial Average. Investors seem to have gotten over the risk posed to Visa by Russia.
- [By Chris Hill]
Visa (NYSE: V ) and Under Armour (NYSE: UA ) hit new all-time highs. General Motors (NYSE: GM ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.
- [By Reuters]
Steven Senne/AP BOSTON -- Companies that help Target process payments could face millions of dollars in fines and costs resulting from the unprecedented data breach that struck the retailer during the holiday shopping season. Investigators are still sorting through just how thieves compromised about 40 million payment cards and the information of about 70 million Target (TGT) customers. But people who have reviewed past data breaches believe Target's partners could face consumer lawsuits and fines that payment networks such as Visa (V) and MasterCard (MA) often levy after cybersecurity incidents. Target's partners "have deep pockets and are intimately involved in certain aspects of how Target gets paid," said Jamie Pole, a cybersecurity consultant in Asheboro, N.C., who works for government agencies and the financial industry. Fines and settlement costs could reach into the millions of dollars for individual companies, he said, though much will depend on how the ultimate liability for the breach is determined. Boston attorney Cynthia Larose of Mintz Levin said Target would likely seek to add its partners as defendants to lawsuits already filed over the breach. "These class-action lawsuits start to bring everyone in at some point," she said. After its systems were penetrated by hackers in the mid-2000s, retailer TJX Cos. (TJX) agreed to pay up to $40.9 million to cover fraud costs in a settlement with Visa. Visa also issued penalties of $880,000 against Fifth Third Bancorp (FITB) of Ohio, which processed transactions for TJX. Asked about the business relationships and possible costs, Target spokeswoman Molly Snyder declined to comment, citing the ongoing investigation and pending suits. A Visa spokeswoman declined to comment. A MasterCard spokesman said the company couldn't discuss an ongoing investigation. Handling Target Transactions Several companies are involved in any purchase from a store such as Target. A bank issues the consumer's payment card
- [By Nicolas Johnson]
Credit cards
Visa (V) and MasterCard (MA) are among the products that most of us carry in our wallets. Mark Lin, who helps oversee about $1-billion in stocks worldwide at CIBC Global Asset Management (CN:CIBCGTEC) in Montreal, also has them as the top holdings in his technology fund.
Top Blue Chip Companies To Invest In Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Evan Niu, CFA]
By just about any measure, Google Wallet hasn't moved the needle in any meaningful way. Will Apple (NASDAQ: AAPL ) fare any better?
The Mac maker is widely expected to unveil some type of mobile-payments solution in the near future. Apple now has more than 500 million active iTunes accounts with payment information just a tap away, and it could easily leverage immediate network effects for a payment service.
- [By WALLSTCHEATSHEET]
Apple strives to provide innovative products and services that consumers and companies love to own. Since a federal appeals court weighed in on Apple�� smartphone war with Samsung last month, the iPhone-maker�� quest to implement a sales ban against its rival�� devices has gained a new lease on life. The stock hasn�� made significant progress in the last several years, but is currently pulling back. Over the last four quarters, earnings have been decreasing while revenues have been rising, which has left investors pleased. Relative to its peers and sector, Apple has been an average year-to-date performer. Look for Apple to OUTPERFORM.
- [By Anora Mahmudova]
Apple Inc (AAPL) shares slid more than 5% afterhours, as the tech group missed analysts forecast on sales of iPhones, even though earnings per share beat estimates.
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