eVestment IGA MLP Performance
Quarterly letter High Valuations and the Case for MLPs
Three market indicators suggest that the stock market is approaching peak valuation levels. The Cyclically Adjusted Price Earnings (CAPE) ratio, championed by Nobel Prize Winner, Robert Shiller, is at its third highest level ever. The CAPE was only higher in 1929 and 2000. The total market capitalization of the U.S. stock market to U.S. Gross […]
2013–the Year of the Punch Bowl
Last year, the S&P 500 rose 29.6%, the equity index’s highest return since 1997. The Federal Reserve’s Quantitative Easing “QE” program of $85 billion a month in U.S. Treasury and mortgage purchases appears to be the catalyst that drove this market’s exceptional performance. S&P 500 earnings rose an anemic 6% in 2013. The Bank of […]
Hidden Earnings and Value Case for JC Penney (JCP)
J.C. Penney (JCP) 8/19/13 Close $13.22–Update 8/20/13 JCP reported an adjusted loss of $1.18 for FQ2, missed analyst estimate by 12 cents but exceeded the whisper number. Positives: The monthly comparables trends for online and apparels are encouraging, signaling that the reversion back to higher level of promotion is working JCP’s back-to-school merchandises are resonating […]
Two Timely MLPs: Calumet Specialty Products Partners, LP, and Tesoro Logistics, LP
Published in Seeking Alpha August 15, 2013 Calumet (CLMT $29.68) recently declined 20% from its recent high of $36.6 due to weak earnings and now yields 9.2%. The temporary nature of the factors relating to the miss is the basis for our optimism. The quarterly earnings disappointment is due to several one-time or ephemeral factors. […]
IGA Introduces Quantitative Strategies and Q2 2013 Review
The second quarter experienced a sharp rise in interest rates marking the beginning of the end of the easy money policy known as Quantitative Easing (QE). Yields on the Ten Year US Treasury rose from 1.6% to 2.6% in a month and the S&P 500 index pulled back nearly 6%. Over the last 140 years, […]
Economic Perspective (Q4 2012)
The stock market is in a delicate precarious position between attractive relative valuation and an earnings recession. On the one hand, interest rates are so low that the stock market is one of the few sensible investment options that one can find for income and inflation protection. On the other hand, with the economy near […]
Tyson Halsey quoted in The Wall Street Journal’s “Intelligent Investor” column
IGA’s Tyson Halsey was recently quoted in Jason Zwieg’s Intelligent Investor column in the Wall Street Journal. Zwieg sought out Halsey as an expert on alternative yeild investments to comment on Royalty Trusts and the dangers they can pose to unsuspecting investors. Here is a link to the article: Will These Royal Yields Rule? Income Growth Advisors, […]
Quant Dividend Growth Picks and Pans
Income Growth Advisors, LLC’s quantitative dividend growth strategy completed its quarterly rebalancing two weeks ago. Our 14 stock model has had an 11-year simulated record investing in dividend growth stocks that has outperformed the S&P 500 total return index by 12.25% per year before fees. The strategy screens for a 5% historic dividend growth profile, […]
Seeking Alpha publishes Income Growth Advisors
Income Growth Advisors, LLC sold Calumet Specialty Products, LP and bought Targa Resource Corp. for client portfolios. Calumet Specialty Products LP (Symbol:CLMT) is a company that we have owned for years for our clients. They had had some operating difficulties, did not hedge effectively, and declined from 55 and then to below 10 during the 2008-9 […]