Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to questions@spamdex.co.uk

Also in info2.eaglefinancialpublications.com

Beware of the Downside of Stock Buybacks

If you are on a mobile device or cannot view the images in this message view this email in your web browser.
To ensure future delivery please add financial@info2.eaglefinancialpublications.com to your address book or contacts.

Versace PowerTrend Bulletin
ChrisVersace.com | PowerTrend Bulletin | Growth & Dividend Report | Power ETF Trader
02/17/2016
Beware of the Downside of Stock Buybacks



FREE REPORT: 5 Stocks to Double in 2016

Want to turn $25,000 into $283,500 in just a few months? I’m sure the answer to that question is a resounding “YES!” The good news here is that it’s quite possible if you secure positions in just 5 specific stocks this week.

The complete list of stocks is right here (including all the profit details). But there’s no time to lose. These stocks are starting to fire off NOW! Click here for the ticker symbols

During the last few weeks, subscribers to my Growth & Dividend Report newsletter have been sitting pretty in the Dividend portion of our portfolio after exiting nearly all of our Growth Portfolio positions in early January. The lone Growth name that we’ve held onto has been PayPal (PYPL), which as you might suspect falls into my Cashless Consumption investing theme, and it’s been nicely profitable since we added it to the portfolio in early September.

Stepping back and looking at the GDR holdings that were added before year-end 2015, they are up 7% since subscribers were advised to add those companies. But that return doesn’t factor in the more than $9 per share in aggregate dividends that were paid out during that time -- that’s another 4.5% in return.

Given the current market environment, I bet you’re wondering how the GDR portfolio is holding up year-to-date. I’m pleased to say it is up 3.7% compared to the 5.75% drop in the S&P 500, which means the GDR portfolio is appreciating on both an absolute and relative basis.

With the market rebounding over the last few days, the burning question is when do we start adding back to the Growth side of the portfolio?

It’s a great question, and one not to be taken lightly. After such sharp moves lower in the market like the one we’ve seen through early February, it’s tempting to be a hero and go on a buying spree. If you’ve ever stepped in a puddle thinking it was only so deep and wound up sinking most, if not all, of your entire shoe, then you know that sometimes things are not what they appear to be. After having soaked a shoe or two, I tend to avoid puddles of all shapes and sizes.

Get a Piece of Every Smartphone Sold
Did you know that Apple sells 717,000 iPhones every 48 hours? I have just uncovered a way you can reach your hand into their steady, sky-high profit stream without having to buy expensive Apple stock or trade risky options.

Even though Apple was recently awarded a plum contract by the U.S. Government, the real opportunity lies with the partner who provides Apple with the revolutionary technology needed for this deal. Click here now to discover the name of the company that could give you the chance at gains up to 495%.

Click Here Now!

One of the key drivers of the rebound has been the surge in companies upsizing their share repurchase programs. When companies buy back their shares, they shrink the shares-outstanding figure we find on the income statement. Such a move leads to more favorable earnings-per-share (EPS) comparisons. Think about it: buying back shares doesn’t change a company’s net income. It just reduces the number of shares that are divided into net income to compute the earnings per share for a given quarter. If you were to think those share buyback programs could help artificially inflate the earnings growth rate, you would be correct.

That’s why even though I examine a company’s EPS growth, I also make sure to look at its net income growth and operating profit growth, as well as trends in its operating margin. If I had to choose just one of those to focus on, it would be trends in the company’s operating margin -- Sales less cost of goods sold, less selling, general and administrative (SG&A) expenses and research and development (R&D) spending, divided by sales -- because they give a good view of how the business is performing. If operating margins are expanding, the company is boosting its profits; if margins are coming under pressure and falling, odds are there is a problem that we as investors need to factor into our thinking.

When thinking about share repurchase programs, which many people like because they mean the company is increasing its skin in the game, be sure to consider the impact on the bottom line and what that means when you’re valuing the shares.

Sorry for my rather lengthy sidebar commentary, but given the rampant buyback activity, I thought it was important to share those details with you.

So, when do we start adding back to the Growth side of the portfolio?

Unlike many people save Warren Buffett, I actually like it when stock prices fall, since it means quality companies are on sale. Who doesn’t love a bargain?

Why Is Wall Street Ignoring This?
To this day, it still amazes me how many “professional” analysts or individual investors ignore one of the most accurate indicators in the market today. One that I’ve used since March 2014 to nail down 55 double- and triple-digit gains! Informed investors have already used this lost-in-time strategy to detect opportunities that brought them gains of 116% in 2 days… 172% in 13 days… and even 717% in 9 days. Click here now to learn the secret.

Click Here Now!

The issue, however, is that growth expectations are being reset. We’ve seen this in GDP forecasts, as well as earnings expectations for the S&P 500. Coming into this week, 2016 earnings expectations for the S&P 500 group of companies had been reduced to $122.42 per share (a 3.7% increase year over year) and I suspect they still have room to drift lower as the remaining 25% of the S&P 500 companies report their results. Remember all those S&P 500 companies with big buyback plans we mentioned a few paragraphs above? Those buybacks mean that a 3.7% year-over-year increase in EPS translates to growth in Net Income slowing, if there’s growth at all.

Despite the market’s rebound during the last few days, much of the economic data we’ve been getting points to further softening in the economy.  For example, the February reading for the Empire Manufacturing Survey from the Federal Reserve Bank of New York came in at -16.6 with continued contractions in new order activity during the month.

This morning, Feb. 17, we received the Fed’s January reading on Industrial Production. While the metrics were up month over month, if you dug into the report, you would have seen that total industrial production was down 0.7% year over year. Moreover, most of the month-over-month strength was due to the jump in utility activity in January. That makes sense and I can attest firsthand to winter’s belated arrival in the latter part of December as I shoveled snow that fell more than 34-inches deep on my driveway.

As long as we continue to get economic data that raises concerns about growth expectations, either for the economy or for a company’s earnings, we’ll continue to sit on the sidelines and collect our dividends as we wait for even more attractive entry points on growth-oriented stocks.

In case you missed it, I encourage you to read my e-letter column from last week about how investors can still profit in this challenging market. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

 Sincerely, 
chris
Christopher Versace
Editor, Growth & Dividend Report
Editor, Power ETF Trader
Editor, PowerOptions Trader
Follow Me on Twitter
  |  Like Me on Facebook
To ensure future delivery of Eagle Financial Publication's emails please add the domain @info2.eaglefinancialpublications.com to your address book or contact list.

This email was sent to because you are subscribed to the Chris Versace's PowerTrend Bulletin List. To unsubscribe or update your delivery preferences, please click here.


If you have questions, please send them to Customer Service.

Eagle Financial Publications - Eagle Products, LLC. - a Caron Broadcasting Company
300 New Jersey Ave. NW, Suite 500 | Washington, D.C. 20001

© 2015 Eagle Financial Publications. All rights reserved.


---------------------------

All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.


Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to questions@spamdex.co.uk | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at questions@spamdex.co.uk. Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See https://archive.org. Spamdex is in no way associated though. Supporters and members of http://spam.abuse.net Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.