Category Archives: Chuck Carnevale

Medtronic, Inc. (MDT): What Is Due Diligence? Here’s How I Do It – Seeking Alpha

Medtronic, Inc. (MDT): What Is Due Diligence? Here’s How I Do It – Seeking Alpha: The lexicon of the financial world is full of phrases and jargon that are often tossed about without considering that there may be those who are not exactly familiar with the true meaning of the terms. It recently came to my attention that due diligence may be one of those idioms. In my own writings, I routinely recommend that readers conduct their own due diligence and/or comprehensive research. However, I recently had a reader ask me exactly what due diligence was and how to do it?

Calculating A Stock’s Fair Value Based On Future Growth Expectations: Part 2A – Seeking Alpha

Calculating A Stock’s Fair Value Based On Future Growth Expectations: Part 2A – Seeking Alpha: Introduction

In part one of this two-part series I focused primarily on calculating the intrinsic value of a common stock based on an analysis and review of historical information and data. Although I strongly believe that there is much that investors can learn by studying the past, I even more strongly believe that since we can only invest in the future, that it is also implicit that we embrace a rational method of forecasting.

CVS Caremark Corporation (CVS): What’s The Correct Discount Rate To Use? Part 2B – Seeking Alpha

CVS Caremark Corporation (CVS): What’s The Correct Discount Rate To Use? Part 2B – Seeking Alpha: Introduction

One of the most widely-accepted and utilized methods of valuing a business in today’s world of modern finance is discounted cash flow (DCF) analysis. Obviously, in order to calculate valuation, practitioners must rely on mathematical formulas. However, the challenge with utilizing mathematical formulas to determine the net present value (NPV) of a future stream of income is in determining the proper inputs. Consequently, the accuracy of our result is subject to the principle “garbage in garbage out.” In other words, our calculations will only be good as the data inputs we use when running our formulas.

How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1 [VF Corp] – Seeking Alpha

How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1 [VF Corp] – Seeking Alpha: Every investor in common stocks is faced with the challenge of knowing when to buy, sell or hold. Additionally, this challenge will be approached differently by the true investor than it would by a speculator. But since I know very little about speculation (trading or market timing), this article will be focused on assisting true investors desirous of a sound and reliable method that they can trust and implement when attempting to make these important buy, sell or hold investing decisions.

Invest In Stocks With A Margin Of Safety To Reduce Risk And Enhance Returns – Seeking Alpha

Invest In Stocks With A Margin Of Safety To Reduce Risk And Enhance Returns – Seeking Alpha: Introduction

Of all of the many sound investing principles that legendary teacher and investor Ben Graham put forward, he believed that his concept of “margin of safety” was the most important of all. This investment lesson was so deeply ingrained into the mind of Ben Graham’s most famous student, Warren Buffett, that he created his two most important rules of sound investing. Rule number one: Never lose money. Rule number two: Never forget rule number one. Clearly, both of these renowned sages understood the importance of minimizing risk, especially when investing in equities. The following quote from Ben’s famous book The Intelligent Investor corroborates and summarizes my point:

Common Sense Strategies For Mitigating Risk In Your Retirement Portfolios: Part 2 – Seeking Alpha

Common Sense Strategies For Mitigating Risk In Your Retirement Portfolios: Part 2 – Seeking Alpha: In part one of this two-part series titled: How Investors Can Mitigate Their Portfolio Risk In Today’s Tumultuous And Volatile World: Part 1, I primarily focused on how risk is thought about and dealt with in today’s so-called world of modern finance theory. As I stated in the first article, my objective was not to denigrate what is commonly referred to as MPT (Modern Portfolio Theory). Instead, my goal was to establish how risk is commonly dealt with in the modern world of finance, in order to contrast it against what I coined as “Ancient Portfolio Reality.”

How Investors Can Mitigate Their Portfolio Risk In Today’s Tumultuous And Volatile World: Part 1 – Seeking Alpha

How Investors Can Mitigate Their Portfolio Risk In Today’s Tumultuous And Volatile World: Part 1 – Seeking Alpha: I believe this question is one of the most important questions that investors need to have answered. This is especially true for retired investors whose lifestyles depend on the incomes their portfolios provide. But, in addition to income, safety, or stated differently, risk, is also a critical consideration. Moreover, on the surface this may seem like a relatively straightforward question to answer. However, there are much deeper issues that this question conjures up. Therefore, in order to answer this question most effectively the concept of risk must be defined, understood and dealt with in its totality.

Utilities – Today’s Best Bond Alternative [The Southern Company, PPL Corporation, Xcel Energy Inc] – Seeking Alpha

Utilities – Today’s Best Bond Alternative [The Southern Company, PPL Corporation, Xcel Energy Inc] – Seeking Alpha: To refer to any stock or equity as an alternative to bonds or fixed income is sure to stir up the ire and consternation of many professional and individual investors alike who deem themselves prudent. Frankly, under normal circumstances I would tend to agree. But the nature of bonds and other fixed income instruments are not normal today. With today’s extreme, and in the minds of many, contrived low level of interest rates, the risk profile of bonds and fixed income are far from typical. More simply stated, the currently extreme low level of interest offered by bonds and other fixed income instruments have dramatically altered, and I contend, increased their risk profile.

The Telecommunications Services Sector Untethered And Poised To Grow – Seeking Alpha

The Telecommunications Services Sector Untethered And Poised To Grow – Seeking Alpha: Suffice it to say that the Telecommunications Services sector of today is not your grandfather’s Telecommunications Services sector. The explosion, and rapidly becoming ubiquitous implementation, of wireless technologies have been disruptive and game changing. As a result, the very nature of the established stalwarts within this industry have gone through an extraordinary metamorphosis. As wireline has given way to wireless, virtually every company in the Telecommunications Services sector has been forced to change their business models to align themselves with contemporary phone, Internet and cable offerings.

Improve The Productivity Of Your Dividend Growth Portfolio With Technology – Seeking Alpha

Improve The Productivity Of Your Dividend Growth Portfolio With Technology – Seeking Alpha: Dividend growth investors seeking quality dividend growth stocks to fund their retirement portfolios have not historically looked to the Information Technology sector. Traditionally, the Information Technology sector has been associated with higher growth and higher risk. However, in addition to higher growth, many technology companies are also very cyclical in nature. Another common attribute for tech companies is how they have traditionally utilized their capital. In order to finance their high-growth needs, the majority of Information Technology companies have traditionally not paid dividends. Instead, they used their capital to fund future growth. However, another contributing factor to the no dividend policy of Information Technology companies was the nascent nature of this industry.
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