Nov 7, 2012|
Stock Talk - John Buckingham of AFAM
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
All right we are gonna do some stocks right now we're joined by John bucking him. From the frank funds the out in good morning John -- Thank you good -- hey -- John let's take a look at some of your stock picks today first when looking at down a little bit this morning. Newmont Mining Corp. civil any M what do you like. Right well course everything is down this morning. That gold that gold as -- -- not binding on is actually holding up pretty well I'm -- think investors should have exposure to gold. In their portfolio albeit I like the individuals stocks as opposed to an actual -- The reason we like you bond. Is an inexpensive valuation and earnings are expected to still be north of five dollars this year and next year stock trading below sixty and perhaps more importantly you also get a -- percent dividend yield of this. -- In this kind of a market environment I still think the evidence are attractive right now that dividend taxes are gonna go up next year but I still think dividends are attractive especially when you're getting one point 6%. Yield on the ten year treasury. Sure Europe you also like Portugal Telecom. Symbol for this I believe is PT this is a -- -- -- 87 cents stock. Guy who what why would why would you invest money Portugal today. Well one of the reasons. Is that -- investors. Tend to have the same reaction I can detect in the town of your -- you know why would you want to invest in Europe and the reason for that is that the valuation reflects the difficulties that are going on in Europe. But perhaps more importantly in this case that Portugal Telecom's global Telecom. Provider. -- -- 25% of the Brazilian wireless company called why Portuguese in a lot of pop and also -- assets Africa and southeast Asia is so over half of their revenue comes outside of Portugal and I think that it's understood that companies. And more importantly they've remained profitable. European mass. In their dividend yield on the -- 8%. Would you categorize that with Telefonica. TF. -- yes and that's similar pain now you know I happen to be partial to Portugal in given the global diversity and also the fact that they've spent a lot of money. Have a lot of capital expenditures behind them ready and so they forward their capex is going to be lower. And the idea courses that are profit margins will be higher. Revenue grows they don't have to spend as much. Pain -- John you've got a third dividend pay air force and that's Marvell Technology symbol MR DL. This appears to have a dividend yield -- 3%. Yep that that that is correct you know we we of course are value investors. A prudent speculator newsletter. On focusing. On. That generally means things that have had not performed well. This year so all of these names like you're down substantially year which attracts a student. I'm Mark -- still very profitable. But that storage area are very profitable companies like Peter -- shares stock trading around eight bucks. Fantastic balance sheet they like to let it work. Financial Castro on the books now yet. -- for the share prices may have captured them in profitable. It is -- 3%. And PE ratio. -- long term success he'd been short struggle here -- spending. So I take it when you purchase the stock you're buying it kind of like in the Warren Buffett -- you buy it for the long term you're not day trading the stock shot at selling and after 2030 days. Oh absolutely not our our average holding period has been in the order years anywhere from three to five years that the outlook that we take. You know we're probably focusing on the long term investors and to get too fixated on short term movements. For example a market that's selling off today of course the market rallied yesterday -- -- Monday thought he looked at it with a three day window years year you know. In our shop -- not even for the three -- should. Even that today obviously we'd rather not have seen what happens. Yeah -- -- blame this on the election. These things that are. I'm not well it's interesting because. -- did show you know media response was well this must be because of concerns about the fiscal left. Are concerned about the election about it if you looked at features and I am -- here in California I was still awake last night as Obama was giving his rousing victory speech at the futures were actually higher. And now. Of course this morning we had some negative comments Europe. Which you know it didn't help matters to my mind it's a combination of things -- today and it's not unexpected as the ball back after the election. All right what John hey thank you very much -- time -- know -- -- out -- -- -- -- -- -- him from -- Al frank funds joining us today on the financial exchange. June -- not like I don't think I've ever seen this many text messages in my life out bombarded this most recent one I wanna get to go because this is of a Paramount importance I don't want somebody to make a mistake based on were talking about. Seventy when asked this question do not have a multifamily house that is upside down -- 400000 dollars on it. And my home and which idol 300000 dollars. Do I lose a 100000 dollars in deductions under some symbols the answer is -- you do not. Your primary residence is going to be limited to a 500000. Dollar mortgage now in terms of what you can deduct in a mortgage for million the week in deduct is going to be limited. To 500000 dollars. On investment properties you're still going to be able to deduct the mortgage interest on an investment property if it was a second home. Right then you're in trouble but his was a multifamily which I assume means that he is. Renting it out that's a business right now -- Simpson Bowles does not take away that deduction at tax deduction for mortgage interest is mortgage interest. Associated with the investment properties however if you've got a place down on the KP got a place up on -- the sake. That is for personal enjoyment it will affect the deduction on -- hundred assume that that's going to be lost. As saying got -- up I'll -- has a busy show. Yeah and and Europe you need honey T hear you seemed. To hyper not hyper it's great. Outlets it was sitting here and I know spokesman learning or educating ourselves it is what you're saying can mean. You like pizza. Yeah I would talk about upper crust pizza and and how much longer they're going to be opened -- talk about them and the excitement.