Author Archives: nlo-admin

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from November 15, 2013 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

Deere & Company (DE) topped the list last year but the shares failed to gain much traction with an increase of only +5.7%.  Value Line Investment Survey's projected fair value at $118.80 is based on a multiple of 11x cash flow.  Unfortunately for the bulls, DE shares have not traded close to that projection, yet.  Net income per share for DE is expected to fall from $9.09 in 2013 to $8.34 in 2014 (-8%).  The profit outlook is even more grim in 2015 with an expectation of a decline to $6.43 (-22%).  Our valuation model indicates that the current price range is a buy with downside risk as low as -30% below current level.

Caterpillar (CAT) was the best performer from the watch list.  Net income per share rose more than projected which help fuel the rise in share price.   When analysts are too pessimistic, it may be time to get bullish and take on the opposite view.

U.S. Dividend Watch List: November 14,2014

The market was virtually flat for the week.  Below are 36 companies that are worth considering on our watch list. Continue reading →

After a minor correction, the market came roaring back and gained +2.7% for the week. As a result of the market rebound, the number of companies on our watching declined dramatically from 101 to 36 companies. Below is the list of companies that are worth considering. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from October 11, 2013 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

IBM (IBM) was at the top of our list last year but shares fell 8.4% since we published our watch list. One October 18, 2013 we said the following about IBM shares.

According to our valuation model, the stock is priced just below fair value of $180. Our model indicates that the stock should be undervalue at or around $150. We’d look for more weakness to come.

IBM shares are trading a $160 which is slightly above but given that the company lifted the EPS guidance, we wouldn't be surprised if our fair value estimate should be reduced.

We highlighted Exxon Mobile (XOM) and alerted our readers that we took position in the stock prior to the ex-dividend date. We booked a gain of 14% from the transactions while the market gained 5%. The stock however has given some ground in recent weeks due to weakness in the oil price. If the stock retraced back toward the 52-week low, you can be certain that we will look to accumulate shares again.

U.S. Dividend Watch List: October 24,2014

After what appeared to be a minor correction in a short period of time, the market roared back and regained some ground. The S&P 500 rose 4% for the week. Based on that information, we would assumed that less companies will show up on our list and that was the case. The total number of companies that fit our criteria rose dropped to 101. Such figure is still a large number thus we will highlight 24 companies that are trading within 6% of the 52-week low. Continue reading →