Edible Earnings From DRI (Darden Restaurants Inc.)

DRI (Darden Restaurants Inc., $108.80) is a corporation that owns some of America’s famous restaurant chains: Olive Garden, Long Horn Steak House, Bahama Breeze, Cheddar’s Scratch Kitchen, The Capital Grill, Yard House, Eddie V’s, and Season’s 52 Grill.

Last Thursday, shares jumped 8.3% after their shareholders call, impressing investors by beating their earning goals; from $123.8 million (0.98 cents per share) to $174.5 million ($1.39 per share).

Carrying a fantastic history of consistent dividends, DRI has been steady in their lifetime on the stock market.

Image from StreetInsider.com

DRI also announced to increase their dividends by 19% for 0.75 cents per share. Many stock analysts are claiming this company to as a buy and hold investment. Current shareholders are very satisfied with their consistent dividend history since 2011.

Their Seasons 52 grill was the only restaurant that lagged behind by -1.39%.

Cheddar’s Scratch Kitchen was acquired last year by an all-cash offer for $780 million on March 27, 2017, some investors believe they could become more aggressive and competitive from their competitors BJRI (BJ’s Restaurant, $61.70) and DAVE (Famous Dave’s, $6.60). However, CEO, Gene Lee announced in DRI’s recent quarterly meeting,

“Our strategy remains unchanged, and our operators’ consistent focus on being brilliant with the basics has allowed us to continue building guest loyalty while taking market share.”

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: DardenRestaurants.com/investorrelations, Streetinsider.com, Markets.Businessinsider.com

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Is CVS lagging behind?

Yesterday (Tuesday), CVS (CVS Health Corp., $71.90) announced their new “next-day” home prescription delivery service for their exclusive customers. As well as delivering prescribed medication, they will also deliver:

  • Cold and flu remedies
  • Digestive health
  • First aid
  • Allergy medications
  • Pain relief
  • Baby care products
  • Personal and feminine care
  • Vitamins

Smart move CVS, but aren’t you a little late on this?

From AMZN (Amazon, $1,728.82) to WMT (Wal-Mart, $84.55), large corporations are staying ahead and adding a two-day shipping feature to their shipping system. CVS is ranked as one of the largest retail pharmacy chains in America. With a fair net profit margin of 3.59% (compared to the overall HC industry of 4.92%), CVS manages over 1 billion prescriptions a year and their new “next-day” feature will be an excellent add-on for their customers.

Speaking from personal experience (working in the healthcare field), picking up prescriptions is a constant burden for families everywhere. Specifically for elders, there is a constant request for mail delivery options for medications. There are many elders who cannot drive well due to their poor medical or cognitive conditions, they are constantly depending on busy caregivers or family friends to retrieve their medications.

As an investment, many investors see CVS riding a bullish trend for quite some time since it’s price drop from 2015 at $113.65. However, it is claimed by analysts ait’s still a valuable longterm hold, their 1-year target price is $88.25.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: WSJ.com, LinkedIn Business Daily, Cnbc.com

5 Luxury Cars You May Not Want

Luxury cars are beautiful and a high-end vehicle can say a lot about the driver. Yet, many car buyers tend to forget about the depreciation and long-term value of the car. By all means, spend the cash to get the car you deserve, but look twice before you purchase these models because they are the top five depreciating cars on the market.

  • BMW 5 Series– By 52.6%. A BMW has been known as the most depreciating car on the market. From your normal maintenance payments over $1,000 to its long list of poor technical and safety features, you better off buying a TSLA (Tesla,$357.00) who is also on the hot seat as we speak (no pun intended).
  • Volkswagen PassatBy 50.7%. Surprisingly, Volkswagen’s most loved car drops quickly in depreciation. Though there are many mechanic complaints, that doesn’t stop the consistent sales and demand for this model.
  • Mercedes-Benz E-Class– By 49.9%. If you bought this car, you either bought it for the lifestyle brand or because you can actually afford it (along with the low gas mileage).
  • BMW 3 Series- By 49.8%. BMW back on the list for an as 4th place in the most depreciated car. This smaller model has the same complaints as the 5 series, along with the poor gas mileage and high maintenance.

These evaluations were issued by iSeeCars to analyze models with the greatest loss in value after three years. This study has opened the eyes to investors who invest in the automotive industry as well as future first-time car buyers. So the next time you’re looking into a new car purchase, keep in mind of the quality and functionality and how it will fit into your lifestyle.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: iSeeCars.com, KellyBlueBook.com

Nexstar Media Groups (NXST) Takes Action

NXST (Nexstar Media Group, $75.35) is one of the nation’s largest media broadcasting company based in Irving, TX. With a market cap. of 3.40 billion dollars, NXST is particularly loved by buy-and-hold investors.

NXST operates over 171 television stations across the United States and made a recent acquisition in 2017 of LKQD technologies for $90 million– a leading independent advertising infrastructure corporation. LKQD is a top performer in video advertising and reaches million of people through mobile phone advertising, tv advertising, etc.

Screenshot from Robinhood

With a fair GPR (gross profit margin) of 57% and a consistent dividend history, some investors believe NXST has more to grow from their low p/e ratio 6.936. Their projected stock price in one year is $95.00.

Neuberger Berman Genisis is the largest mutual fund holder of NXST and analyst are claiming this is a great time to buy if the investor is looking to have holdings in the consumer cyclical sector.

Please see About Me & Disclaimer for additional information about Black Tea.

The Christian Investor: Time To Be A Leader

If you want to be a leader or you’re already placed in a leadership role, take action and always be ready to serve people in the best way possible. There are many readings you can find in the bible about people taking leadership roles and how God helped them in a difficult situation. But there is a big difference in managing people and leading people. Five signs of successful leadership qualities are:

  • Generosity
  • Being Likable
  • Remembering everyone’s name
  • Showing others that you genuinely care
  • Focusing on people and looking at them in the eye when they are talking

Being a leader takes courage, discipline, and determination. You have the responsibility to serve others before you serve yourself. As is says in Galatians 6:9,

Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.

Perhaps you’re not a CEO of a large corporation or manager of a firm, but God may want you to take a leadership role amongst your friends. As you draw closer to God this week, ask him in what ways you can have better leadership skills and how you can be a godly influence on others.

Do nothing out of selfish ambition or vain conceit. Rather, in humility value other above yourselves. – Philippians 2:3

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Who is Jamie Dimon?

Jamie Dimon was announced this spring to be the CEO of the new healthcare venture owned by the founders of Berkshire Hathaway (Warren Buffett), Amazon (Jeff Bezos). He has big shoes to fill since the world is watching, but who is Jamie Dimon?

Jamie Dimon is currently the chairman and CEO of JPM ( JPMorgan Chase, $107.63) and has a net worth of approx. $1.3 billion dollars. Dimon was born in the heart of New York City and took after his paternal grandfather who was also a banker in Athens, Greece. However, his grandfather changed the family name from Papademetriou to Dimon to sound more French and less greek (Greek Orthodox). Dimon’s father and grandfather were also stockbrokers.

In his career, he has achieved multiple awards for excellence. Known for yanking JPM out of more than $12 billion dollars of debt, he is honored and appreciated by his employees for his strong and kind-hearted leadership skills.

Dimon, Buffet, and Bezos have discussed problems amongst each other for years about the poor healthcare benefits their employees receive. Buffet said this year in a recent Berkshire Hathaway meeting in Omaha,

“We don’t necessarily plan to start healthcare companies or necessarily insures of anything. The motivations are not primarily profit-making. We want our employees to get better medical services at a lower cost.”

The powerful trio is concentrated on the long-term benefits rather the near-term and is eager to make necessary changes if it’s best. Since healthcare costs have risen drastically other the past few decades, investors are anticipating great management from Dimon for the new healthcare venture.

 

 

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained: Cnbc.com, Wikipedia.com

How Entrepreneurs Handle Challenges & Rejection

Every entrepreneur deals with adversity in his or her journey to success. You have your own ideas and not everyone will agree with you. Whether you’re starting a networking business or opening a retail store, there is a better way to handle tough challenges and rejection.

Change Your Thinking

Challenges

As entrepreneurs, we have to be flexible in every difficult situation. You can’t be dragged down when something doesn’t happen the way you envisioned. Challenges aren’t always a bad thing, challenged are good for you! They help you figure out problems and teach you how to get around difficult situations.
NEXT TIME: The next time a difficult situation arises, change your thinking from “I can’t…” to “How can I…“. When you think of how can you handle a situation, your mind immediately goes to work for you and think of ways you can handle the situation.

Remember Why You Started

Rejection

You will receive it all of your life, get used to it. All entrepreneurs go through rejection because not everyone thinks the same, and that how it should be! You don’t want everyone to have your ideas, you just have to present them in a way people will like it. KFC founder Colonel Harland Sanders was 40 years old when he started his business and was rejected 1,009 times before he found someone to buy his fried chicken recipe. But he pursued his dream because he was in love with his craft, and that’s all it takes.
NEXT TIME: The next time you come against rejection, remember why you started. Rejection isn’t a bad thing. Find out why you got rejected and if there was no reason, simply try again with a different approach.

Succesful entrepreneurs are at the top because they built tough skin to stand against rejection and difficult situations. Entrepreneurs are not average people, they are tough, smart, and have excellent communication skills. If you’re an entrepreneur, associate with like-minded individuals and find a mentor. Always be positive, teachable and look forward to the next opportunity.

Investing Secrets: R&D Expenses

R&D stands for Research and Development on a company’s financial statement. This expense is usually misunderstood and overlooked by many investors. Let’s take a quick look at how we can use this to our advantage.

Similar to “Cost of Goods”, R&D entails the company’s cost of reinventing new products and their costs of production. These expenses may vary, but technology companies can spend huge sums of money in this category. When GOOGL (Google/Alphabet, $1,144.23) may spend 25% of their gross profit on R&D (which is very good for such a superior corporation), AMD (Advanced Micro Devices, $16.50) spends almost 65% of their gross profit on R&D to survive and keep up with their competitors.

Look for consistent numbers in this area.

Some companies may need to spend more than others, however if prices continues to fluctuate year after year, this can be a warning sign of poor management. Depending on which sector you may be investing in, investors tend to look for consistent numbers in this area. INTC (Intel, $55.00) similar to GOOGL, is known for consistency spending 25% of their gross profit on R&D expenses.

These expenses are very important and investors. Calculating a company’s expenses is an exceptional way to discover their long-term stability over the next five to ten years. Some investors take a step further and combine the SGA and R&D percentages to calculate how much the company overall spends from their gross profit. Yet, every investor makes different calculations in regards to their own investing style.