American Tower Stock Price and Research (NYSE: AMT)

american tower stock price american tower research nyse amt 2

By Rob Otman

American Tower (NYSE: AMT) is a large cap company that operates within the REIT industry. Its market cap is $60 billion today and the total one-year return is 27.68% for shareholders.

American Tower stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…


✓ Earnings-per-Share (EPS) Growth: American Tower reported a recent EPS growth rate of 25%. That’s above the REIT industry average of 3.52%. That’s a great sign. American Tower’s earnings growth is outpacing competitors.

✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the REIT industry is 57.12. And American Tower’s ratio comes in at 49.81. It’s trading at a better value than many of its competitors.

✗ Debt-to-Equity: The debt-to-equity ratio for American Tower stock is 233.38%. That’s above the REIT industry average of 101.18%. That’s not a good sign.

✗ Free Cash Flow per Share Growth: American Tower has decreased its FCF per share relative to its competitors over the last year. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.

✗ Profit Margins: The profit margin of American Tower comes in at 18.88% today. And generally, the higher, the better. We also like to see this ratio above competitors. American Tower’s profit margin is below the REIT average of 56.68%. So that’s a negative indicator for investors.

✓ Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for American Tower is 22.97% and that’s above its industry average ROE of 11.17%.

American Tower stock passes three of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

When it comes to dividend stocks, you can’t beat the Dividend Aristocrats. But not all Aristocrats are created equal… That’s why you need to see our new report, The 10 Best Dividend Aristocrat Stocks. You’ll learn to generate reliable passive income from the most solid dividend-payers on the market. Click here to learn more. …read more

Source:: Investment You

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How to Earn a Safe 6% Yield

By Alexander Green After a long absence, volatility returned to world financial markets in recent weeks.

That’s not a bad thing necessarily. It never hurts to be reminded that stocks and bonds are not cars on a one-way street.

The traffic often reverses – suddenly and without warning.

Many investors – especially income investors – are now wondering where they can earn a decent return with a lower level of risk.

One suggestion: preferred stocks.

Preferreds are often called hybrid securities. They have the properties of both stocks and bonds.

Unlike common stocks, they generally carry no voting rights. But the dividend is fixed – rather than declared – and has priority over the common stock (hence the “preferred” label).

Also, in the unlikely event of a corporate liquidation, preferred shareholders stand ahead of common stock holders (but are secondary to bond holders).

Like common stock dividends, preferred dividends are taxed at the more favorable 15% maximum tax rate (20% if you’re in the highest tax bracket) – plus the 3.8% Obamacare surcharge.

That’s considerably less than the new top marginal tax rate of 37% on interest-bearing securities, foreign shares and real estate investment trusts.

If you want to be even more tax-efficient, own these in your qualified retirement plan where they will compound tax-deferred.


Preferreds are less volatile than common stocks, but they still bounce around. They fell during the recent financial crisis, for instance. However, they dropped only two-thirds as much as the S&P 500 and rebounded during the recovery.

Because of their fixed payments, preferreds – like bonds – are interest-rate sensitive. When rates go up, prices go down. And vice versa.

Unlike bonds, however, these securities may not mature for as many as 50 years – if ever. (One caveat: If interest rates rise substantially, you could be holding lower-valued paper that a corporate issuer might not redeem.)

Preferreds have less upside potential than common stocks because the issuer typically has certain redemption rights. These generally include a “call” provision, where the company can buy out shareholders at face value five years after the issue date.

But here’s the real benefit: Preferreds are currently yielding around 6%. That’s higher than what junk bonds yield, even though preferred shares are less risky.

For example, you can get 6% (or better) yields in preferreds issued by solid financial companies like JPMorgan Chase, Bank of America and Capital One Financial.

Safer still, you could own a diversified portfolio of preferreds. Consider an exchange-traded fund (ETF) like iShares S&P U.S. Preferred Stock Index Fund (Nasdaq: PFF), PowerShares Preferred Portfolio (NYSE: PGX) or the riskier PowerShares Financial Preferred Portfolio (NYSE: PGF).

Or consider a closed-end fund like Nuveen Preferred & Income Opportunities Fund (NYSE: JPC) or Nuveen Preferred & Income Securities Fund (NYSE: JPS). Both are liquid, sell at a 7% discount to their net asset values and pay dividends monthly.

The expenses are higher with closed-end funds because they are actively managed and able to use leverage to goose returns. The ETFs have lower expenses and are less volatile (since prices hew closer to net asset values).

Here’s the bottom line: With preferred …read more

Source:: Investment You

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[3 Must-See Charts] Fast Food, Faster Gains


By Greg Guenthner

This post [3 Must-See Charts] Fast Food, Faster Gains appeared first on Daily Reckoning.

The stock market frustrated both the bulls and bears this week.

For the second day in a row, a morning rally fizzled and stocks stumbled into the close. The Nasdaq Composite was the only one of the averages that managed to close in the red on Thursday. The S&P and the Dow both finished in positive territory.

A choppy market’s no fun for most investors. But some short-term traders are at their best when stocks get volatile.

My newest trading colleague is no different. Thanks to his extensive experience on the trading floor of the Chicago Mercantile Exchange, Joshua Belanger thrives in volatile market conditions. He’s made it his mission to help market watchers like you pull fast gains out of the markets with his “Hot Money” trades.

You can sign up for Joshua’s FREE trading event by clicking here. Reserve your seat while you can and you’ll learn everything you need to know about the power of his “Hot Money Tracker” on Tuesday…

In honor of fast-paced trading strategies, we’re focusing on speed in today’s must-see charts. If there’s one thing quicker than a fast-food burger, it’s the gains you could see from Joshua’s new system.

Let’s get started:

1. No chicken? No problem.

KFC is in a bit of a pickle. The iconic fast food joint is having trouble getting ahold of its main ingredient in Britain.

That’s right — KFC has run out of chicken.

“Why didn’t the chicken cross the road?” Wired asks. “Because of a single point-of-failure in the chicken restaurant’s supply chain and lack of contingency planning, that’s why.”

Thanks to a supply chain goof, most KFC locations throughout Great Britain have remained closed over the past week. The chicken crisis continues as we approach the weekend.

Surprisingly, the restaurants closures haven’t spooked investors. At least not yet.

KFC’s parent company, Yum! Brands (NYSE:YUM), is holding tight above its recent lows despite the Great Chicken Crisis:

We can’t wait for YUM’s next earnings call this spring. It should be a doozy…

2. The pizza wars are over

We’ve watched the big chains duke it out for pizza supremacy over the past few years.

Frankly, I’m not sure why anyone would want to eat mediocre “fast food pizza” at all. But for whatever reason, we’ve found ourselves in the center of a bonafide pizza bull market. Thanks to Papa John’s (NASDAQ:PZZA) and Dominos (NYSE:DPZ), cheap pizza is thriving.

But Dominos has dominated Papa John’s recently. The charts don’t lie:

Domino’s latest earnings report sealed the deal. Thanks to another strong increase in same-store sales, DPZ streaked to new all-time highs this week. Meanwhile, the Papa is tumbling back toward its 2017 lows…

3. Searching for direction

Turning back to the S&P 500, we’re waiting to see how this week’s chop resolves. The S&P has stuck just below its 50-day moving average all week:

Futures are pointing to a green open this morning. But if today’s session is anything like we’ve seen this …read more

Source:: Daily Reckoning feed

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Power Americas Minerals – Cheap Valuation in Prolific Historic Canadian Silver & Cobalt Camp

By analyst

Power Americas Minerals (TSX-V: PAM) / (OTCQX: PWMRF) is well positioned among roughly 18 juniors exploring for Cobalt (“Co“) (and associated gold/silver) in the world-class, past-producing Silver-Cobalt Mining Camp in northeastern Ontario, Canada. … …read more

Source:: PRNewswire-Mining and Metals

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Inflation vs. Your Retirement

Zach Scheidt

By Zach Scheidt

This post Inflation vs. Your Retirement appeared first on Daily Reckoning.

Look out, inflation is coming!

Is your investment account ready?

This week, the minutes from the most recent Fed meeting were released and “almost all participants” saw inflation moving towards their 2% goal.

This is a very important topic to understand if you want to protect the wealth you’re building through dividend stocks.

So today, I want to talk a bit about why investors are worried about inflation and what this means for your retirement…

Good Inflation Versus Bad Inflation

We’ve been taught that inflation is a bad thing for most of our lives. That’s because it seems “wrong” that things cost more and more over time. Especially if you’re living on a fixed amount of savings or income and inflation makes it harder for your resources to stretch.

But did you know that inflation isn’t always a bad thing? In fact, a moderate amount of inflation is actually considered a good thing for the economy.

Good inflation occurs when an economy is growing and there is more demand for important things like food, manufactured products, energy and even human capital. As demand picks up, people and businesses are willing to spend more for the things they need. And this steady rise in demand can trigger higher prices — or inflation.

One of the first signs of inflation we saw this year — the one that is partially to blame for sending the market lower — is an uptick in wages. For the month of January, U.S. wages rose an average of 2.9% over the same period last year.

Do you think the millions of workers who have received a 2.9% boost to their paychecks consider this “bad inflation”?

Certainly not!

These wage increases are part of a healthy, growing economy that is willing to pay more for the work that individuals do. It also helps that tax cuts have left corporations with more cash to spend on higher hourly wages, higher salaries, bigger bonuses and other employee benefits.

Today’s level of inflation is right in the sweet spot for a growing economy. It’s not too hot and not too cold. If inflation were to move sharply higher, we’d have to worry about whether individuals could afford higher costs of living. And if inflation were to move sharply lower, it would be a worrisome sign that the economy isn’t growing as robustly as we thought.

But for now, I’m very comfortable with the level of inflation we’re seeing today.

Higher Inflation Leads to Higher Interest Rates

One of the reasons investors reacted poorly to the January wage increase is because inflation naturally leads to higher interest rates. And higher interest rates can sometimes cause problems for businesses and the economy.

There are two reasons why interest rates track closely with inflation.

The first one is “natural.” In other words, it occurs because of free market forces.

When inflation starts to kick in, consumers have an incentive to spend money quickly. After all, if you save your money, it will lose value if inflation is very …read more

Source:: Daily Reckoning feed

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Rio to build power plant at Oyu Tolgoi copper-gold mine in Mongolia

By analyst

By Cecilia Jamasmie

Mining giant Rio Tinto (LON, ASX:RIO) will seek approval to build a power plant at its giant Oyu Tolgoi copper and gold mine in Mongolia and so comply with a 2009 investment agreement that calls for local suppliers to power the operation.

The move, however, would add further costs to an ongoing $5.3 billion underground expansion of the mine, said Oyu Tolgoi LLC, Mongolia’s largest copper and gold mining company, which is a strategic partnership between the country’s government (34%) and Turquoise Hill (66%), of which Rio Tinto owns 51%.

Last week, Rio Tinto said it was working with its partners to find a solution to the power supply issue after the government reinstated a decade-old agreement ordering the miner to source power for Oyu Tolgoi domestically.

Last week, Mongolia gave Rio four years to build a local power plant to serve the mine, a plan that could come with a bill as high as $1 billion.

The company was told that it had four years to either find a domestic supplier or build a power plant, which could come with a bill as high as $1 billion. Such facility, however, would allow Rio to secure power for the mine from domestic rather than Chinese sources, as stipulated in the investment deal signed nine years ago.

Rio has already earmarked $250 million a year for the development of a power station in the landlocked country in its 2019 and 2020 spending plans.

A plan to buy electricity from a plant to be built at the Tavan Tolgoi coalfields, known as TTPP has been rejected, said Oyu Tolgoi LLC in the statement.

“TTPP currently lacks a lead investor to develop a viable technical and commercial proposal for Oyu Tolgoi to consider and it is unable to secure financing without a credible lead investor,” it said.

“Extensive negotiations and lender due diligence would still be required once those key issues are resolved. TTPP would therefore not be operational within four years,” it added.

Off on the wrong foot

It has been a rough year so far for Rio Tinto’s operations in Mongolia. First, the country’s government served Oyu Tolgoi with a new bill for $155 million in back taxes — the mine’s second tax dispute since 2014. Turquoise Hill said at the time the charge related to an audit on taxes imposed and paid by the mine operator between 2013 and 2015. It added it’s disputing the assessment.

Shortly after, the southern Gobi Desert-based mine had to declare force majeure after protests by Chinese coal haulers disrupted deliveries near the border.

By the end of January, Rio’s chief executive Jean-Sebastien Jacques travelled to Mongolia’s capital city to meet with Prime Minister Ukhnaagiin Khurelsuk about how to build “win-win” partnerships. The visit was followed by a company’s announcement that it was opening a new office in the country, which will focus on exploration and local links.

The company is also facing increasing pressure from shareholders about its alleged lack of transparency about pledges to …read more

Source:: Infomine

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Zimbabwe resumes diamond sales, expects to auction 1.56 million carats

By analyst

By Valentina Ruiz Leotaud

Zimbabwe’s Minister of Mines, Winston Chitando, held a press conference this week to announce that, following its one-year break, the country has resumed diamond auctions and expects to sell 1.558 million carats of diamonds over the next two months.

According to Chitando, the Zimbabwe Consolidated Diamond Company will conduct separate auctions in March and April to sell all the diamonds it has stockpiled since last year. Known as ZCDC, the state-owned corporation was created in 2016 after the consolidation of seven firms that were mining gems in the Marange diamond fields, located in the eastern part of the country. In 2017, sales were halted as the company underwent a restructuring process that, in the words of government officials, was aimed at aligning its marketing and sales framework to international standards.

But a test sale was conducted two weeks ago and, according to the minister, it was a total success. It made $829,067, was attended by buyers from European, Middle Eastern, Southeast Asian and African countries, and one single rock sold for $1,888. Seeing these results, the ZCDC is expected to host regular tenders throughout 2018.

Chitando also told reporters that the tenders will be conducted on the basis of a reserve price and that the ZCDC and the Minerals Marketing Corporation of Zimbabwe will work on a sales calendar to enable diamond buyers to plan in advance.

The post Zimbabwe resumes diamond sales, expects to auction 1.56 million carats appeared first on

…read more

Source:: Infomine

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Mandalay’s coffers suffered from Cerro Bayo’s downtime

By analyst

By Valentina Ruiz Leotaud

The President and CEO of Canada’s Mandalay Resources (TSX:MND), Mark Sander, dubbed 2017 as a challenging year for his company.

In a press release outlining Mandalay’s unaudited 2017 fourth quarter and full-year financial results, Sander said that the company generated 12 per cent lower revenue last year compared to 2016. Suspension of production at its Cerro Bayo underground silver-gold complex in Chile, following a flooding that took place on June 9 and killed two workers, was the main cause behind the reduced earnings.

“As expected, Cerro Bayo remained on care and maintenance through the entire fourth quarter. Staffing has been reduced to approximately 50, focused on: care and maintenance activities, investigating the cause of the inundation last June, and obtaining all permits necessary to restart and complete the life of mine plan. The company has decided that, given the range of expectations about timing of the restart permitting process, it is appropriate to impair the carrying value of the asset by $19.8 million,” the executive said.

Mandalay had to spend $12.8 million in the search and recovery efforts after the inundation, as well as in the follow-on redundancy and care and maintenance costs. From 2018 on, the Toronto-based firm expects that care and maintenance costs at Cerro Bayo will be about $6 million per year.

According to Sander, however, 2017 also saw some positive outcomes. “Lack of production from Cerro Bayo was offset by record production at Björkdal, which continues to demonstrate operational improvements. Mandalay cost of sales decreased by 15% year-on-year as relatively high-cost Cerro Bayo left the mix and Björkdal unit costs declined significantly. With the impact of lower revenue, the company generated only 4% less adjusted EBITDA and follow-on reduced net income before special items in the current quarter,” he said.

For the year ended on December 31, Mandalay generated revenue of $163 million, adjusted EBITDA (underlying earnings) of 48.6 million and adjusted net loss before special items of $10.1 million.

In other words, the effects of having to put Cerro Bayo in care and maintenance were less than expected given the breakthrough performance at Bjorkdal in Sweden, which helped the company sell 1% more ounces of gold equivalent in the fourth quarter of 2017 than in the fourth quarter of 2016.

Also in the last term of the year, the Costerfield gold-antimony mine in Australia produced 12,360 gold equivalent ounces at a “very sound” cash cost of $707 per ounce, and at an all-in cost of $902 per ounce. “We expect continued performance at these levels for the upcoming year as development of the new Brunswick lode is completed and production transitions from Cuffley to Brunswick,” Sander wrote in the statement.

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Source:: Infomine

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An Insider’s Insider to Advise the Fed

Jon Faust, Ben Bernanke and Janet Yellen

By James Rickards

This post An Insider’s Insider to Advise the Fed appeared first on Daily Reckoning.

Sometimes the most important news is buried so deep it’s not even news. A certain story may be the most important market development by far, but if no one notices and no one understands the significance, it hardly qualifies as news.

We had an event like that last week. The most important financial story I have read in a long time went completely unnoticed. It was not reported in the mainstream media. You will not hear it discussed anywhere, you will not see it reported anywhere.

I’m talking about the news that Jon Faust will be a part-time advisor to new Fed chairman Jerome Powell.

Your first reaction upon reading this is probably, “Who’s Jon Faust, and why should we care if he’s advising the Fed?”

The answer is that Faust is an “insider’s insider” at the Fed. He’s the most powerful monetary expert that no one has ever heard of. He’s actually one of the top monetary economists in the world. Knowing Faust’s backstory is the key to knowing what Fed monetary policy will be going forward.

Faust is a monetary economist with a Ph.D. from the University of California, Berkeley, the same school where Janet Yellen taught for many years. Faust’s thesis adviser was Janet Yellen’s husband, the Nobel Prize winner George Akerlof. Few economists are as close to Yellen as Faust. The same is true of Bernanke, who holds Jon Faust in the highest regard.

From 1981–2006, Faust worked as a staff economist at the Federal Reserve Board in Washington, D.C., eventually rising to assistant director of the Division of International Finance. In 2006, Faust left the Fed to become director of the Center for Financial Economics, CFE, at Johns Hopkins University in Baltimore.

I was one of the original benefactors of CFE and in that capacity was involved along with others in recruiting Jon to join CFE from the Fed. He happens to be a friend of mine. I know him well. A long profile of my discussions and interactions with Jon over the years is found in Chapter Six of my most recent book, The Road to Ruin.

In 2012, Faust was named “special adviser” to the Federal Reserve Board at the request of then-Chairman Ben Bernanke. He remained in that role until August 2014, a period that covered the transition from Bernanke to the new Fed Chair Janet Yellen in February 2014.

Faust’s Fed tenure from 2012–2014 included critical developments such as the launch of QE3, implementation of the “taper” from 2013–2014 and preparation for the interest rate “liftoff,” which finally arrived in 2015 not long after Faust left.

Faust’s main task, as requested by Bernanke and continued by Yellen, was communication on monetary policy. This did not mean communication in the usual sense of public relations or press liaison. It meant communication about monetary policy to manage market expectations.

Bernanke wanted a “no surprises” policy at the Fed. Bernanke might’ve wanted to ease policy, as he …read more

Source:: Daily Reckoning feed

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Here’s What the Fed Won’t Tell You

By James Rickards

This post Here’s What the Fed Won’t Tell You appeared first on Daily Reckoning.

Yesterday, the Fed released the minutes from its January Federal Open Market Committee (FOMC) meeting.

The minutes revealed that most members expect higher economic growth ahead, indicating that “further gradual policy firming would be appropriate.”

Stocks initially rallied when the report was released, since it didn’t appear to raise fears of rapidly rising inflation. It seemed to indicate only a gradual path of rate hikes. The Dow surged 300 points after the report came out.

But the bond market took the report with more urgency. The bond market indicated the Fed might be more aggressive, possibly raising rates as many as four times this year. Yields on the 10-year Treasury spiked to 2.95% — a four-year high.

Stocks began to slide once the bond market reacted. And after its initial rally, the Dow ended the day down 166 points.

Will the stock market volatility we’ve seen lately induce the Fed to back off on the rate hikes?

No, not necessarily.

The Fed isn’t as concerned about the stock market as many people think. Ben Bernanke once told me that the stock market would have to fall 15% before the Fed intervened. I think that’s a good rule of thumb. There are some caveats that apply, but I think a 15% drop is a realistic figure.

So the 11% correction we saw earlier this month, despite all the panic it caused, wasn’t enough to affect the Fed’s longer-term plans.

Here’s what you need to know:

The Fed isn’t raising rates because the economy is strong or they’re trying to get out ahead of inflation. GDP growth for all of 2017 was just 2.3%, only slightly better than the 2.13% cumulative growth since 2009. And worse than the 2.9% growth rate in 2015 and the 2.6% rate in 2014.

And inflation overall is still weak.

No, the real reason the Fed is raising rates is because it’s desperate to get interest rates up to around 3–3.5%. That will allow it to prepare for the next recession.

The last recession ended in June 2009. It’s almost nine years since the last recession. This has been one of the longest economic expansions in U.S. history. It’s also been a very weak expansion. Growth is running about 2.1% versus 3–3.5% historically.

That means we’re going to have a recession sooner than later. I’m not saying we are, but we could be in one already. We usually don’t know we’re in a recession until about six months into it.

Historically speaking, it takes 300 or 400 basis points of rate cuts to lift the economy out of recession. That means interest rates would have to be between 3% and 4% to effectively address it. Right now rates are 1.5%.

How do you cut rates 3.5% when they’re only at 1.5%?

The answer is you can’t. You run out of runway fairly quickly. That’s why the Fed is so eager to raise rates to about 3.5% and will use almost any excuse to do so. An 11% …read more

Source:: Daily Reckoning feed

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