For the companies that own cellphone towers, business has been brisk. American Tower Corp. (NYSE: AMT), SBA Communications Corp. (Nasdaq: SBAC) and Crown Castle International Corp. (NYSE: CCI) have generated 17%-to-22% compound annual sales growth over the past five years.   The business model is fairly simple. Each cell tower can handle equipment and traffic for as many as four or five telecom carriers and transmit a signal anywhere from 22 to 45 miles. Leases of ten years and annual rent increases of around 3% mean the towers are great cash flow machines. #-ad_banner-#As telecom carriers race to compete and… Read More

For the companies that own cellphone towers, business has been brisk. American Tower Corp. (NYSE: AMT), SBA Communications Corp. (Nasdaq: SBAC) and Crown Castle International Corp. (NYSE: CCI) have generated 17%-to-22% compound annual sales growth over the past five years.   The business model is fairly simple. Each cell tower can handle equipment and traffic for as many as four or five telecom carriers and transmit a signal anywhere from 22 to 45 miles. Leases of ten years and annual rent increases of around 3% mean the towers are great cash flow machines. #-ad_banner-#As telecom carriers race to compete and raise money selling off their tower infrastructure, they’re finding eager buyers in the tower operators. Verizon Communications, Inc. (NYSE: VZ) announced a long-term lease and sale of 11,500 towers, one of the last remaining large carrier portfolios, to American Tower in February for $5.06 billion. Since cash flows are all but certain, debt is easy to come by and tower operators are loading up to make capital investments for years to come. American Tower has more than two-thirds of its capital structure (68%) in debt and a BBB credit rating by Morningstar, just one level above non-investment grade. Crown Castle… Read More

Later this year, there will be a rare passing of the demographic baton, as millennials surpass the baby boomers as the nation’s largest living generation. Millennials are those born from 1981 to 1997, while the baby boomer generation arose from 1946 to 1964. By year end, there will be more than 75 million millennials and just under 75 million baby boomers, according to projections by the Pew Research Center, a Washington, DC-based think tank. Moreover, that gap will widen over time, thanks to immigration and an eventual reduction in the number of baby boomers. For investors,… Read More

Later this year, there will be a rare passing of the demographic baton, as millennials surpass the baby boomers as the nation’s largest living generation. Millennials are those born from 1981 to 1997, while the baby boomer generation arose from 1946 to 1964. By year end, there will be more than 75 million millennials and just under 75 million baby boomers, according to projections by the Pew Research Center, a Washington, DC-based think tank. Moreover, that gap will widen over time, thanks to immigration and an eventual reduction in the number of baby boomers. For investors, the implications are clear: Millennials are set to become the nation’s main growth engine, taking over the role baby boomers began to assume in the mid-1960s. To be sure, millennials face their share of obstacles to prosperity such as a tepid economy, somewhat gloomy job prospects and, in many cases, heavy student loan debt. But they have two powerful factors in their favor: the sheer size of their generation and the U.S. economy’s renowned resilience. Together, these factors should translate to progressively greater spending power, which sooner or later, will rival that of the baby boomers. That backdrop warrants a… Read More

When one group has disproportionate authority over another, there is little leeway for the characteristics that make us uniquely human — carelessness, bigotry, emotion, error in judgment, ignorance. That truth has never been more evident than in recent months, which have been plagued with high-profile incidents of law enforcement fatally using force to apprehend suspected lawbreakers. The deaths of Michael Brown in Ferguson, Missouri and Freddie Gray in Baltimore, Maryland, among others, spurred outcries of police negligence, followed by protests and riots in major cities. #-ad_banner-#The trouble arises when an officer resorts to violence, but there is little or no… Read More

When one group has disproportionate authority over another, there is little leeway for the characteristics that make us uniquely human — carelessness, bigotry, emotion, error in judgment, ignorance. That truth has never been more evident than in recent months, which have been plagued with high-profile incidents of law enforcement fatally using force to apprehend suspected lawbreakers. The deaths of Michael Brown in Ferguson, Missouri and Freddie Gray in Baltimore, Maryland, among others, spurred outcries of police negligence, followed by protests and riots in major cities. #-ad_banner-#The trouble arises when an officer resorts to violence, but there is little or no evidence to substantiate or discredit the need for an escalation in tactics. This often leads investigators to rely on eyewitness testimony and official police statements, both of which have potential for biases. Incidents like this foster distrust in the justice system and in the police. This is not a new problem, but it is one that finally has a solution. The answer: offer nonlethal weapons and hold all parties accountable by strapping a camera to every officer. A recent study by the San Diego Police Department concluded that the presence of body cameras reduced complaints against… Read More

Apple is a “no brainer” investment, and it has been for years. The company’s first quarter earnings for 2015 only drive home that point. The firm’s new products and features are wildly popular, the company is growing sales in markets outside the United States and every year Apple sells a greater quantity of devices than it did the year prior. What’s interesting about Apple is that for all the hype surrounding the company and its products, it still remains undervalued. Consider this: analysts expect Apple to earn $8.79 per share in 2015. That’s a 38.6% increase over the prior year. Read More

Apple is a “no brainer” investment, and it has been for years. The company’s first quarter earnings for 2015 only drive home that point. The firm’s new products and features are wildly popular, the company is growing sales in markets outside the United States and every year Apple sells a greater quantity of devices than it did the year prior. What’s interesting about Apple is that for all the hype surrounding the company and its products, it still remains undervalued. Consider this: analysts expect Apple to earn $8.79 per share in 2015. That’s a 38.6% increase over the prior year. Putting aside for a moment the fact that analysts consistently underestimate Apple’s earnings potential (the company hasn’t had a consensus “miss” on quarterly earnings since 2012), the stock trades at a forward price-to-earnings of 14.6. #-ad_banner-#Companies in the S&P 500 as a whole are expected to grow earnings by 4.2%, giving the broader index a forward multiple of 17.9. So what we have is the largest company by market capitalization expected to outpace the market’s earnings growth this year by more than nine fold, yet it trades at a discount (of more than 18%) to the market. Read More

Turnaround strategies can focus on a variety of factors. Some companies shed lagging divisions, while others pursue acquisitions to jump start growth. For John Chen, the CEO of BlackBerry Ltd. (Nasdaq: BBRY), new product development holds the key. In a recent interview at the Milken Institute Global Conference, Chen said his firm will focus on security, privacy and increasing productivity with its devices. #-ad_banner-#His comments come following a February deal with Google, Inc. (Nasdaq: GOOG) and Amazon.com, Inc. (Nasdaq: AMZN) that will bring hundreds of thousands of new applications to BlackBerry users. Is Chen planning to make more announcements that… Read More

Turnaround strategies can focus on a variety of factors. Some companies shed lagging divisions, while others pursue acquisitions to jump start growth. For John Chen, the CEO of BlackBerry Ltd. (Nasdaq: BBRY), new product development holds the key. In a recent interview at the Milken Institute Global Conference, Chen said his firm will focus on security, privacy and increasing productivity with its devices. #-ad_banner-#His comments come following a February deal with Google, Inc. (Nasdaq: GOOG) and Amazon.com, Inc. (Nasdaq: AMZN) that will bring hundreds of thousands of new applications to BlackBerry users. Is Chen planning to make more announcements that could put the Canadian smartphone company back on top? Or is it just another failed attempt to resuscitate the one-time leader in enterprise services? Chen needs a victory. BlackBerry’s shares have surged and slumped in recent years as potential buyouts, new strategies and new management failed to put the company back on track. Not long ago, BlackBerry was a market leader in the mobile enterprise services category. Now, BlackBerry’s share of the global mobile operating system (OS) market is less than 1% (compared to the 96% market share about evenly controlled by Apple iOS and Android OS devices). Read More

Investors hoping Avon Products Inc. (NYSE: AVP) will stage a big turnaround probably shouldn’t hold their breath. After numerous failed attempts to boost its faltering business, the iconic cosmetics marketer may well be a lost cause. Current media reports about a possible sale of the legacy North American segment are a clear sign of how a once-great company has fallen. Rather than risk an investment in Avon, investors should consider a lesser-known, but far more promising, beauty products retailer: Ulta Salon Cosmetics & Fragrances, Inc. (Nasdaq: ULTA). Founded in 1990, more than a century after Avon, Ulta is seen by… Read More

Investors hoping Avon Products Inc. (NYSE: AVP) will stage a big turnaround probably shouldn’t hold their breath. After numerous failed attempts to boost its faltering business, the iconic cosmetics marketer may well be a lost cause. Current media reports about a possible sale of the legacy North American segment are a clear sign of how a once-great company has fallen. Rather than risk an investment in Avon, investors should consider a lesser-known, but far more promising, beauty products retailer: Ulta Salon Cosmetics & Fragrances, Inc. (Nasdaq: ULTA). Founded in 1990, more than a century after Avon, Ulta is seen by some analysts as the most exciting growth stock in the beauty products industry. During the past three years, annual sales climbed more than 80% to $3.2 billion, net income roughly doubled to $257 million and free cash flow swelled to an all-time high of $148 million. Shares of Ulta rose roughly 70%, well outpacing the broader market. Whereas Avon is built upon a direct sales business model, Ulta takes a more traditional route. Since its founding, the company has established 774 company-owned “big box” retail outlets in 47 states, with plans to open many more in the coming… Read More

No matter how you slice it, $50 billion is a big number. That’s how much money Oracle Corp. (NYSE: ORCL) is rumored to be prepared to pay to acquire Salesforce.com, Inc. (NYSE: CRM), a fast-growing provider of customer relationship management software. Why on earth would Oracle make such a bold move? Because it has hit a growth wall. Oracle’s sales are on track to grow just 1%-to-2% in fiscal (May) 2015 and 2016. Acquiring Salesforce.com would instantly boost the top line by nearly 20%. #-ad_banner-#More importantly, it would enable Oracle’s sales force to peddle existing products to the customers doing… Read More

No matter how you slice it, $50 billion is a big number. That’s how much money Oracle Corp. (NYSE: ORCL) is rumored to be prepared to pay to acquire Salesforce.com, Inc. (NYSE: CRM), a fast-growing provider of customer relationship management software. Why on earth would Oracle make such a bold move? Because it has hit a growth wall. Oracle’s sales are on track to grow just 1%-to-2% in fiscal (May) 2015 and 2016. Acquiring Salesforce.com would instantly boost the top line by nearly 20%. #-ad_banner-#More importantly, it would enable Oracle’s sales force to peddle existing products to the customers doing business with Salesforce.com. And it would open the door for Salesforce’s team of sales reps to open up new leads for its customers. “Cross-selling” as they say in industry parlance. Frankly, Oracle isn’t alone. Many large tech companies are facing limited organic growth prospects, and they are using their bulletproof balance sheets to rejuvenate their business platforms. These large companies have already proven their desire to grow through acquisitions: According to Reuters, about 60% of tech mergers and acquisitions (M&A) volume over the past five years is represented by five acquirers: Facebook, Inc. (Nasdaq: FB), Google, Inc. (Nasdaq: GOOG), Oracle,… Read More

Bear markets are painful but necessary. They rid the market of the “irrational exuberance” that fuels asset bubbles and allows stock pickers to better separate the wheat from the chaff. Bear markets can also take place in specific sectors, as is happening right now in the energy market.  Yet in such lean times, the best companies can actually turn headwinds into tailwinds. That’s exactly what’s happening at Helmerich & Payne, Inc. (NYSE: HP). #-ad_banner-#H&P owns and operates one of the world’s largest fleets of drilling rigs (primarily land-based). The rigs are typically contracted out to exploration and production companies looking… Read More

Bear markets are painful but necessary. They rid the market of the “irrational exuberance” that fuels asset bubbles and allows stock pickers to better separate the wheat from the chaff. Bear markets can also take place in specific sectors, as is happening right now in the energy market.  Yet in such lean times, the best companies can actually turn headwinds into tailwinds. That’s exactly what’s happening at Helmerich & Payne, Inc. (NYSE: HP). #-ad_banner-#H&P owns and operates one of the world’s largest fleets of drilling rigs (primarily land-based). The rigs are typically contracted out to exploration and production companies looking to extract oil and gas from various shale formations in the United States. Like the rest of the sector, H&P is beginning to feel the effects of low energy prices. In its recent earnings report, the company saw a 1% decline in revenue to $883 million and 14% drop in net income to $150 million. Underlying these declines were shrinking active rig counts and falling dayrates, the daily amount H&P can charge for the use of its rigs. There was also a huge drop in utilization, or the percentage of active rigs contracted out. In Q2, utilization was just 68%,… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to establish a position in the field of robo-advising, also known as “automated investment services.” Before weighing in on which firm has built the best mousetrap and if the entire concept holds real appeal, it helps to understand what robo-advisers are and are not. Robo-advisers ask clients to fill out a quick survey that identifies an investor’s goals. They then create ideal low-cost portfolios that hold a basket of diversified exchange-traded funds. Total fees often end up at less than 1% of assets under management, compared to fees of 1%-to-2% of assets under management offered by traditional financial advisors. (Robo-adviser upfront… Read More

Sometimes, nothing improves a company’s outlook like a smart, well-timed acquisition. When done right, these deals can transform companies with unexciting prospects into compelling growth stories. Mid-size defense firm Harris Corp. (NYSE: HRS) is set to make such a transformation this summer, when its $4.8-billion buyout of industry peer Exelis, Inc. (NYSE: XLS) is scheduled to close. Harris, known for secure tactical radio communication systems, wasn’t in trouble before the deal announcement, but it certainly wasn’t in expansion mode, either. By fiscal (June) 2014, annual sales had actually returned to the recession level of about $5 billion, despite a brief… Read More

Sometimes, nothing improves a company’s outlook like a smart, well-timed acquisition. When done right, these deals can transform companies with unexciting prospects into compelling growth stories. Mid-size defense firm Harris Corp. (NYSE: HRS) is set to make such a transformation this summer, when its $4.8-billion buyout of industry peer Exelis, Inc. (NYSE: XLS) is scheduled to close. Harris, known for secure tactical radio communication systems, wasn’t in trouble before the deal announcement, but it certainly wasn’t in expansion mode, either. By fiscal (June) 2014, annual sales had actually returned to the recession level of about $5 billion, despite a brief spike to nearly $6 billion a few years earlier. Earnings per share of $4.95 in 2014  weren’t much better than 2010 and 2011’s totals of $4.28 and $4.60, respectively. Harris has been a good dividend source, more than doubling its payout since 2010. If not for that, the stock probably wouldn’t have been able to deliver solid gains over the past five years. In all likelihood, shares were driven up mainly by income investors seeking higher yields than were typically available in bonds. To avoid shedding market value as the Federal Reserve raises interest rates, Harris will need… Read More