07-12-2022, 02:00 PM
(07-12-2022, 12:43 PM)fenders53 Wrote:(07-08-2022, 09:21 AM)divmenow Wrote: New position in JXN. This one I just stumbled onto. I'm sure no one knows this company. Fenders will go look it up nowYou caught me napping. Yeah the PE looks OK here lol. Makes me feel better about some of my stocks with a 3 to 5 PE. I'll have to figure out what they actually do for money.
t's trading under cash, PE of 1 and it has an 8% yield
I will also research them tomorrow or the day after.
Today I was busy researching CCL and I'm not touching that thing. The cruise industry might very well recover, but I invest mainly for the dividend stream. Pre-covid CCL was pushing about $5b cash from ops, with around $3b in yearly capex. Leaves $2b left.
Current yearly interest payments, yes just the interest payments, are well north of $1b.
So even if things go back to pre-covid levels, which I think is a perfectly reasonable assumption, that'll still leave CCL with only about $1b in free cash flow. That'll be used to pay down debt, not for a dividend anytime soon.
They will probably survive as a company, and sure the share price can appreciate (even large amounts) if they get everything back on track without getting destroyed by the rising interest rates. But I don't see a dividend in the next 5 years.
So this one is a skip from me.