Frank Curzio
By Frank CurzioFebruary 13, 2017

Ep. 490: Frankly Speaking: Capital Gains are Overrated

Welcome back to another episode of Frankly Speaking! Today’s first question covers a stock I recommended over a year ago – Universal Corp (UVV). This is a type of stock that is the complete opposite of any mining company I’ve ever mentioned. It’s what I like to call an “elite dividend payer.”Most “elite dividend payers” are companies you’ll never hear about. These are companies that have plenty of cash flow… they’re not exiciting… and they don’t plan on raising cash anytime soon. Wall Street loves to rave on and on about capital gains but never the other crucial part of the formula – the dividend yield. Over time, as these companies continue to raise their dividend, investors can make a fortune. Then, there are some stocks you should never ever short or bet against. And believe it or not.. Tesla (TSLA) is one of them.The company has a lot of work to do to live up to their valuations… and although the fundamentals scream its a sure short… Investors need to be very careful here. Tune in as I explain why. I’ll be giving away the most important rule behind shorting a stock. Also, I answer a question that couldn’t be better as far as timing. It covers earnings season. There’s a lot of “funny money” business going on around this time of year. And analyzing stocks off company earnings can get very confusing. So, to end the episode, I clear some things up. I’ll be covering the difference between manipulated earnings and adjusted earnings.

Other topics talked about:

– Is this the bottom for Under Armor (UA)?

– How to stay away from stocks that constantly beat you up

Special thanks to Joe, Revis, Kurt, Paul, and Derek for all the great questions!
To read the transcript of the entire episode – Click Here

Stocks Mentioned

  • RPM International (RPM)
  • Diebold (DBD)
  • McDonalds (MCD)
  • Proctor & Gamble (PG)
  • Netflix (NFLX)
  • Amazon (AMZN)
  • Apple (AAPL)
  • Celgene (CELG)
  • Microsoft (MSFT)
  • Nike (NKE)
  • Caterpillar (CAT)
  • Whole Foods Market (WFM)
  • NVIDIA (NVDA)
  • Chipotle Mexican Grill (CMG)

Curzio Research publishes market commentary for informational and educational purposes. The opinions expressed and market conditions when the content is published may change. It is not personalized investment advice or an offer to buy or sell securities. Investing involves risk, including possible loss of principal. Do your own research and consult a qualified investment professional before making investment decisions.

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