My next “Fool Revisited” piece is the second in the Dow series that began with this post. Whereas that piece discussed the old stalwarts of the Dow, today’s historic article examined the seven most recent additions (at the time) to the Dow Jones Industrial Average. The premise behind this series of articles was two-fold: first, we could ticker the index, so it let us put our articles in another place in hopes that more people would see. Second – and perhaps most important from an investing standpoint – I wanted to see if the addition to the Dow had improved the prospects of the stock, giving my readers something to look for should other changes be announced to this silly index that too many people care about.
Of the seven companies profiled, two are no longer included in the Dow Jones. Kraft Foods left the index in September 2012 after its split into Mondelez International and Kraft Foods Group, and was replaced by UnitedHealth Group. Bank of America (NYSE: BAC) left the index in September 2013, replaced by the “larger” (i.e. higher-priced) Goldman Sachs.
My first “Fool Revisited” piece for today is yet another article in which I screened some bank stocks, this time focusing on savings and loans. (I warned you that there would be a lot of articles about banks, and we haven’t even got to the worst of it yet).
Savings and loan banks specialize in doing just that; unlike some bigger banks, they are focused on the work of a “traditional” bank, and tend to avoid a lot of the pitfalls that larger banks that have investment services do. If you have a local bank, chances are that it is a savings and loan. Savings and loans rose to prominence, at least in the minds of “regular” consumers, after the savings and loan crisis of the 1980s, which led to a moderate bailout of $160 billion, including $132 billion from taxpayers.
Like the previous “bank screen” articles, I evaluated all the savings and loan bank stocks on four criteria: P/E ratio (positive only), P/B ratio (less than 2), dividend yield (over 3%), and a positive net income margin. I also only looked at banks over $300 million in market cap. My initial article profiled nine banks, but I will only mention seven in this rundown, as two of the originals – Astoria Financial and First Niagara Financial – were acquired by other banks since article publication. Continue reading →
My final “Fool Revisited” piece for today was the first article I wrote about the Dow Jones Industrial Average (^DJI). I definitely have a love/hate relationship with this particular index – it’s an arbitrary list of 30 companies picked by the folks in charge, weighted by price and not market cap – and it is talked about WAY TOO MUCH in the financial media when it passes certain big numbers. I wrote about when it went past 20,000 last February (it’s currently just a tad under 25,000) and it’s just a stupid measure if you care about what the “stock market” is.
The love part of the relationship comes from the fact that I was able to generate some content of this arbitrary list of companies. And this article was the first of many where the Fool tried to take advantage of “tickering” the index so that they got more page views. Not a bad idea, honestly, especially with the wide coverage that the Dow receives nearly every day in the financial press. Continue reading →
The next “Fool Revisited” piece this week is another earnings take, this time from former favorite stockUnder Armour (NYSE: UAA). At the time, Under Armour was still on the steepest part of its ascent as a company, having only recently just posted over $1 billion in revenue the previous year, a number that has grown to nearly $5 billion in the 6+ years since. However, as we will explore over the course of this series, what goes up must (eventually) come down, and Under Armour has been no exception.
The piece was nothing remarkable; these earnings takes were pretty cut and try and a quick way for the site to get some traffic surrounding the “favored” stocks when news was happening, especially when that news would drive performance one way of another of a stock that was recommended by one of the Fool services, as Under Armour was at the time. People want to know what’s happening and whether it might be a good time to sell at the top and get out or if things look like they are going to continue on. In October 2011, it seemed like the latter for Under Armour, though there were some warning signs that a decline may have been inevitable. Continue reading →