The ultimate shrewdness is found not in the balance sheet, but in the qualitative excellence of the business.
- Manlobbi
Investment Strategies / Falling Knives
No. of Recommendations: 1
Any thoughts on ADT? the security company, very low PFCF and decent share buybacks. Trading at new lows.
No. of Recommendations: 11
I guess the biggest objection is that the firm isn't growing. Top line revenue flat for 6+ years, rising revenue per share because of buybacks only enough to compensate for inflation.
That being said, the price is pretty reasonable. They seem to have traded at an average about 4 times cash flow per share (cheap cash cow territory), and that's about 60% above the current price.
But without a revaluation, a non-growing cash cow delivers you only its dividend yield. Around 3.4% at the current quote.
Some forecasts are rosy. But aren't they always?
Jim
No. of Recommendations: 2
I agree. I noticed that a few of the value orientated funds had been nibbling around the $8 mark and they've also announced a $1.5bn share buyback through to 2029.
I was looking at the shares outstanding and although they've had regular small buybacks the share count has been increasing despute management saying they are shareholder friendly.
AI suggested a closer look at the "Private Equity Overhang" and their looking to exit their position at the expense of other shareholders through buybacks and dilution. Any thoughts on that?
No. of Recommendations: 0
Ring, Nest and other companies are eating into their home business pretty bad. Installing a Ring system is easy and I pay $200 a year for monitoring.
No. of Recommendations: 3
Ring, Nest and other companies are eating into their home business pretty bad. Installing a Ring system is easy and I pay $200 a year for monitoring.
Not that anyone should take it as a bullish comment from me, but FWIW do note that they have a big partnership deal with Google Nest, including rollout of five new devices in that line.
Jim
