Batched non-urgent reads

Batched non-urgent reads

Another mid-week list as it happens around earnings season.

  • CAH: Cardinal Health’s (CAH) CEO Mike Kaufmann on Q2 2020 Results – Earnings Call Transcript
    • Comment: I am currently long CAH, but wrote calls against the entire position that will likely get called. After reading the earnings call transcript, my decision remains same – it’s a trade here, not investment. If I lose my small position for a >$1000 profit, so be it. I am just not confident in the either the business model or the political landscape 3-5 years from now; hence: a trade.
    • Conclusion: Let the outstanding calls ride (March)
  • D: Dominion Energy, Inc. (D) CEO Tom Farrell on Q4 2019 Results – Earnings Call Transcript
    • Comment- I thought was a good earnings report out and the management team covered current progress as well as future plans and challenges. I am a fan of their evolution to a much greener and regulated utility. Though their LNG business is bothersome, it’s not keeping me from investing.
    • Conclusion: invest more! Price is high here and I will increase position with yield target ideally 4.75-5.0%.
  • CSCO: Cisco Systems, Inc. (CSCO) CEO Chuck Robbins on Q2 2020 Results – Earnings Call Transcript
    • Comment – Another solid, no surprises, earnings report from CSCO. The stock got hammered because their strategy and outlook did not change (odd?).  I thought there were two nuggets worth including in my investment decision. 1) they are in the forefront of 3 major technology evolutions in their industry and all 3 will make CSCO money (but patience will be required); 2) management identified customer hesitancy within today’s macro view that is also made more complicated by point 1 – technology transitions.
    • Conclusion: Invest more at right price over the next 3-6 months as investors continue to lose patience. Their mistake, my gain.

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