DM Monthly Report – March 2019
SHARE REPURCHASES REACH RECORD LEVELS IN 2018 – Though identifying companies which are able to generate and grow cash flow is fundamental to our equity investment process, perhaps even more important is the emphasis we put on understanding what management will do with excess capital once received. As we see it, a company can invest surplus funds to generate organic growth, it can acquire other firms to realize synergies, it can boost its dividend, and/or it can buy its own stock in the open market. If management is effective in its use of capital, the company’s intrinsic value will rise and, eventually, this should be reflected in share price.
Click here to read more: DM-Monthly-Report-Mar-19
Cardinal Update – Feb 2019
VOLATILITY – Stock market volatility moves in both directions. As investors, we are elated to see upside volatility as our portfolio increases in value. Unfortunately volatility was far more on the downside last year. If you have been watching stock movements as of late, you would have noticed that sentiment can turn on a dime. Investors trying to understand and predict the short term direction of the market have been whipsawed. Uncertain or bad news has been met with down markets and even sometimes good news has, at times, rattled the markets over the past few months.
Click here to read more: Cardinal Update – February 2019
DM Monthly Report – Feb 2019
DID THE MARKET JUST SHAKE OUT A FEW ‘WEAK HANDS’? It’s said the market declines cause capital to shift from weak to strong hands – – in other words, those least confident in their long term investment plans are most likely to abandon them when things get difficult, while those with resolve tend to view disruptions as opportunities to rebalance portfolios and deploy idle cash. When stocks punctuated their Q4 slide with a sharp plunge on Christmas Eve, one can assume the more than a few turkey dinners were served with a side of portfolio angst.
Click here to read more: DM-Monthly-Report-Feb-19
Cardinal Quarterly – January 2019
MARKET OUTLOOK – 2019 should be a good year for investors. In fact, we think that we may already have seen the bottom of the recent market downturn, which briefly fell below the 20% bear market definition on the S&P 500 and was not far behind in Canada. Markets have been rallying in early January based on hopes that the U.S. and China can reach an agreement to end the trade war they are in. Talks may get derailed in the near-term causing markets to fall again, but even in this case, we would expect the market to bottom in the first quarter and recover quickly from there. We would not be surprised to see markets up 20% from Dec. 31st levels by the end of 2019.
Click here to read more: Cardinal Quarterly – January 2019
