11-29-2018, 12:47 AM
(11-28-2018, 06:12 PM)vbin Wrote: Although Powell seems to be taking cautionary steps with increase in interest rates(there could be multiple reasons at play) but lower interest rates in current situation doesn't seem plausible. Interest rates will have to be increased sooner or later. Too late can actually hurt the currency and inflation control efforts and have much more serious consequences in longer run.
On a different note, anyone looking at SJM would appreciate some insights.
I bought SJM last year and doubled it on the dip now, it is still a relatively small position. I don't know the brand too well and I did not take a deep-deep look. Numbers look good, despite the fall in share price the top and bottom line both ncreased, yes, the guidance was lowered, so what. FCF payout is around 40% which is very good, div growth rate is great. The valuation is so-so, not something to get excited about, I think the current price is more or less fair.
The long term debt level is something I noticed, but given the powerful FCF I'm not too worried.
I think it's a nice one to have in a divi growth portfolio, but not with a large weight.