Friday, November 17, 2017

Invesco: when performance matters

What Makes Invesco (IVZ) a Good Business?

As we are riding a never-ending bull market, Invesco continues to perform like there is no tomorrow. At the end of September 2017, 64%, 67% and 75% of Invesco’s actively managed portfolios were beating their peers on 1, 3 and 5 years basis. In other words, when investors look for performance, they look at Invesco.
The company has been proven resilient after the sale of Atlantic Trust in 2013 and the departure of their all-star portfolio manager Neil Woodford in 2014. Those two events affected the most important metric for any investment firm: assets under management. Despite these two events, IVZ shows a positive AUM growth of 1.9% annualized rate over the past 5 years. Let’s take a deeper look at this strong investing firm.

Revenue

Revenue Graph from Ycharts
As mentioned in my introduction, IVZ shows a strong performance model that enabled it to keep its AUM growing. Revenue are now back to growth territories and the recent acquisitions in the ETFs business will definitely push IVZ to higher level.
What I like about IVZ AUM is that we are not only talking about assets being lifted-up by strong market performance. The company recorded long-term net inflows of $6.3 billion in their latest quarter.


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Thursday, November 16, 2017

Is That Superman In The Sky? Not It’s A Boeing!

Investment Thesis

What happens when the leader of an industry sees several opportunities knocking on its doors at the same time? The stock surges like there is no tomorrow. Boeing (BA) is the leader in the commercial aircraft industries and benefits from several growth vectors at the moment. Its commercial airplanes division is booming with strong backlog, military expenses are pushing its Defense, Space & Security segment and management came with the idea of offering additional services to its clients securing recurring revenues.
Boeing looks like the perfect stock to hold right now. But what if you missed your flight, is still time to buy another ticket?

Understanding the Business

Boeing is well known for its commercial airplanes. The company is divided into 3 segments (% of revenue are coming from BA latest quarter):
Commercial airplanes: this segment counts for about 60% of BA business. In 2016, the company led the industry for a 5th consecutive year for the most deliveries (source annual report 2016).
Defense, Space & Security: this segment counts for about 23% of BA business. Boeing manufactures satellites, military aircrafts and weapons systems. 37% of this division revenue comes from international clients.
Global Services: this is a new segment introduced this quarter and represented 15% of BA business. It is dedicated to providing more agile, cost-effective and streamlined after-market support and services to its commercial clients. BA eyes also the maintenance business and plans to integrate spare parts, modifications, upgrades, and data analytics and other information based services to its offer.


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Wednesday, November 15, 2017

Quarterly Update – Q3 2017

Welcome to the quarterly update for Q3 2017. This is part of  a series where I track our financial progress on a quarterly basis. I present three parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, and (iii) Goals Update.


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Monday, November 13, 2017

8 High-Yielding Mega-Cap Stocks

There is perceived safety in size. Giant corporations aren't randomly grown. Instead, they are carefully built through superior management and foresight. Often these are more mature companies that also offer stability and predictability, usually at the expense of dynamic growth. These are your mega-cap stocks.


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