Exxon Mobile Think Again | Vitaliy Katsenelson Contrarian Edge

General Electric’s collapse should have served as a reminder that buying a company based solely on past reputation and dividend yield is a dangerous endeavor. GE is also a great example that dividends are not paid out of earnings, especially massaged-to-death non-GAAP earnings, but from free cash flows. GE’s non-GAAP earnings were double its dividend payment. This brings us to another American icon Read more about Exxon Mobile Think Again | Vitaliy Katsenelson Contrarian Edge[…]

How a volatile stock market turns investors into gamblers

Don’t let this wave of stock-market volatility go to your head. The value of the companies in your portfolio doesn’t change by a positive or negative 5% three times a day. Get the value right and the price will follow. For example, my firm recently met with a prospective client, a physicist who has made Read more about How a volatile stock market turns investors into gamblers[…]

Exxon Mobile Think Again | Vitaliy Katsenelson Contrarian Edge

General Electric’s collapse should have served as a reminder that buying a company based solely on past reputation and dividend yield is a dangerous endeavor. GE is also a great example that dividends are not paid out of earnings, especially massaged-to-death non-GAAP earnings, but from free cash flows. GE’s non-GAAP earnings were double its dividend payment. This brings us to another American icon Read more about Exxon Mobile Think Again | Vitaliy Katsenelson Contrarian Edge[…]

How Amazon could lose its health-care bid while drug distributor stocks win

Amazon.com has been one of the most innovative and disruptive companies of this century, with incredible success in areas that lie outside of what has been historically perceived as its core business (book selling). Thus every announcement or speculation that Amazon will enter into a particular industry sends stocks of that industry into a tailspin. Investors Read more about How Amazon could lose its health-care bid while drug distributor stocks win[…]

Welch vs Bezos | Vitaliy Katsenelson Contrarian Edge

I am going to be in South Florida February 21-25 (Wednesday-Sunday). I will spend a few hours in Fort Lauderdale on Wednesday afternoon. I am attending a conference in South Beach Wednesday-Friday and then will spend Friday-Sunday in the Delray Beach area. I’ll try to organize reader get togethers while I’m in Florida, but I’m not Read more about Welch vs Bezos | Vitaliy Katsenelson Contrarian Edge[…]

Options, Hurricanes and Hedging | Vitaliy Katsenelson Contrarian Edge

The purpose of my scribbles is not to provide you with a fish but to teach you how to fish (though sometimes some fish will sneak in). The scribble I am about to share with you I wrote to IMA’s clients in January 2018. Its purpose was to explain why we were going to start Read more about Options, Hurricanes and Hedging | Vitaliy Katsenelson Contrarian Edge[…]