INVESTMENT PHILOSOPHY Royce is a disciplined small cap long -
term value stock investor.
Not exact matches
«
Stock prices in the short -
term have nothing to do with intrinsic
value,» Prem Watsa says.
The Chairman of the Board John Thompson defended the package, saying that the
stock payment «motivates our CEO to create sustainable long
term shareholder
value by providing him with the opportunity to share in those gains.»
Graham's philosophy of «
value investing» — which shields investors from substantial error and teaches them to develop long -
term strategies — has made The Intelligent Investor the
stock market bible ever since its original publication in 1949.»
Simply put, a deal that offers participating preferred
stock creates a lower implied valuation for your business than a plain vanilla
term sheet with no participation feature, because the investors will end up with a disporportionately higher piece of the
value created.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common
stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near
term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common
stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the
value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
But short
term, investors think
stocks are fully
valued, with the S&P seen rising just 1 percent for the rest of the year.
Buyback proponents say they reward these long -
term shareholders by effectively increasing their ownership of the company, and they help boost the
value of a
stock by raising the company's earnings per share.
His evidence: rising short rates, low long -
term rates (suggestive of little inflation), the rise in
value stocks, and outperformance in emerging markets relative to U.S. equities.
While short -
term stock price movements should normally not be a concern for boards, nearly halving the
value of the
stock in less than nine months warrants some attention — and a look at the board's practices.
Stock options and other incentive compensation reward near -
term focus rather than creating sustainable
value
Value investors like Buffett will tell you that such
stocks are a better bet over the long
term because they provide better returns with less risk.
While T. Rowe Price doesn't build a
stock portfolio based on potential takeover candidates, Umbarger says, that possibility has lately become a bigger part of the investment discussion at the firm, in
terms of «How could you
value it in the eyes of other beholders?»
The company's ESOP - training plan calls for role - playing games to help employees better understand their impact on
stock value as well as a series of what - if exercises to help explain the delicate balance between short -
term profit taking and long -
term growth needs.
With limited growth opportunities in a low interest rate environment, many CFOs have argued buying back
stock is the best way to boost shareholder
value in the near -
term.
Just how Tribune (TPUB) would mount a hostile takeover bid for Gannett (GCI), a company that is more than four times its size in
terms of
stock - market
value, is unclear.
Just consider the financial risks entrepreneurs run, for example, if they give company
stock to their children as part of a long -
term estate - planning strategy — only to have the IRS step in years later and challenge the claimed taxable
value of the gifts.
His deep -
value philosophy can be boiled down to four points: he's looking for high - quality
stocks that protect against the downside; he wants businesses where short -
term issues have caused investors to abandon the company; he wants to wait until valuations are «out - of - this - world» cheap, and he tries not to pay attention to macro issues like eurozone debt or Chinese growth.
«But if you look at hundreds of examples, you find that
stock buybacks do increase long -
term value.»
In August 2012, to create incentives for continued long -
term success from the then - recently launched Model S program as well as from Tesla's then - planned Model X and Model 3 programs, and to further align executive compensation with increases in stockholder
value, the Board granted to Mr. Musk a
stock option award to purchase 5,274,901 shares of Tesla's common
stock (the «2012 CEO Performance Award»), representing 5 % of Tesla's total issued and outstanding shares at the time of grant.
First, consistent with our other equity vehicles, OSUs deliver
value in the form of Intel common
stock, focusing the leadership team on ensuring the long -
term viability of the company.
At present I would suggest that there is large scale deflation at present as property
values unwind worldwide, this will be followed by falling
stock values as investors realize that large sectors of investment returns are also headed for long
term decline.
As discussed in the CD&A under «Compensation Components» and «Achieving Compensation Objectives — Pay for Performance,» we have provided incentive compensation in the form of an annual cash incentive award based on Company, business line and individual qualitative performance results for each fiscal year, and long -
term incentive compensation generally in the form of
stock option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long -
term stockholder
value.
Subject to the provisions of our 2015 Plan, the administrator will determine the other
terms of
stock appreciation rights, including when such rights become exercisable and whether to pay any amount of appreciation in cash, shares of our Class A common
stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a
stock appreciation right must be no less than 100 % of the fair market
value per share on the date of grant.
iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select
Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short
Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long
Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred
Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.
The
term of an incentive
stock option may not exceed ten years, except that with respect to any participant who owns more than 10 % of the voting power of all classes of our outstanding
stock, the
term must not exceed five years and the exercise price must equal at least 110 % of the fair market
value on the grant date subject to the provisions of our 2015 Plan.
As described above, a portion of an executive's target long -
term incentive amount is delivered in the form of PRUs, and the remaining
value is awarded in grants of time - based restricted
stock units.
Long -
term compensation, generally in the form of stock option grants under our Long - Term Incentive Compensation Plan (LTICP), to reward named executives for contributions to growth in stockholder value over the long t
term compensation, generally in the form of
stock option grants under our Long -
Term Incentive Compensation Plan (LTICP), to reward named executives for contributions to growth in stockholder value over the long t
Term Incentive Compensation Plan (LTICP), to reward named executives for contributions to growth in stockholder
value over the long
termterm;
This leads to a fundamental belief among
value investors that although the
stock market may, in the short -
term, wildly depart from the fundamentals of a business, in the long - run the fundamentals are all that matter.
One - half of the
value of the long -
term incentive award is awarded in the form of
stock options.
One
term that gets thrown around a lot when talking about the
stock market is «
value stocks».
By inefficiently utilizing valuable capital to buy back
stock at inflated prices, the company destroyed
value for long -
term shareholders.
Eveillard became particularly famous for his stance that
value investors should buy
stocks on margin because the objective is to hold
stocks for long -
term appreciation.
The majority of my investments are in long -
term funds, but for my non-retirement account, I like to put that MBA to work and find the best
value stocks I can.
The perennial appeal of
value investing is based on the excellent long -
term performance of global
value stocks.
In
terms of valuation, Valeant Pharmaceuticals
stock currently trades at TTM price to sales
value of 0.58 x and price to book
value of 1.40 x.
Very few
stocks in the S&P are priced to deliver long -
term returns of 10 % annually, and even this view assumes that recent earnings can be taken at face
value.
Provided, however, that an incentive
stock option held by a participant who owns more than 10 % of the total combined voting power of all classes of our
stock, or of certain of our parent or subsidiary corporations, may not have a
term in excess of five years and must have an exercise price of at least 110 % of the fair market
value of our common
stock on the grant date.
This is lower volatility than many other
stocks in percentage
terms, but because of the high
stock price (absolute, not a reflection of
value) the moves are large in absolute dollar
terms.
Subject to the provisions of our 2016 Plan, the administrator determines the other
terms and conditions of
stock appreciation rights, including when such rights become exercisable and whether to pay any increased appreciation in cash or with shares of our common
stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a
stock appreciation right will be no less than 100 % of the fair market
value per share on the date of grant.
Subject to the provisions of our 2010 Plan, the administrator determines the
terms of
stock appreciation rights, including when such rights vest and become exercisable and whether to settle such awards in cash or with shares of our common
stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a
stock appreciation right will be no less than 100 % of the fair market
value per share on the date of grant.
Subject to the provisions of our 2013 Plan, the administrator determines the other
terms of
stock appreciation rights, including when such rights become exercisable and whether to pay any increased appreciation in cash or with shares of our common
stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a
stock appreciation right will be no less than 100 % of the fair market
value per share on the date of grant.
Under the
terms of our equity incentive plans, the fair market
value on the grant date is defined as the average of the high and low trading prices of FedEx's
stock on the New York Stock Exchange on that
stock on the New York
Stock Exchange on that
Stock Exchange on that day.
The
term of an incentive
stock option may not exceed 10 years, except that with respect to any participant who owns more than 10 % of the voting power of all classes of our outstanding
stock, the
term must not exceed 5 years and the exercise price must equal at least 110 % of the fair market
value on the grant date.
In the event of an ownership change, utilization of the Company's pre-charge NOLs would be subject to annual limitation under Section 382, which is generally determined by multiplying the
value of the Company's
stock at the time of the ownership change by the applicable long -
term tax - exempt rate (which is 3.50 % for December 2013).
One of Buffett's most controversial bets — a bubble - era wager on the long -
term value of
stock market indexes, using tools he once scorned as «weapons of financial mass destruction» — started to pay off in the fourth quarter.
In the event of an ownership change, utilization of our pre-change NOLs would be subject to annual limitation under Section 382 determined by multiplying the
value of our
stock at the time of the ownership change by the applicable long -
term tax - exempt rate, increased in the five - year period following such ownership change by «recognized built - in gains» under certain circumstances.
The dollar
values of the long -
term compensation targets were then converted to shares of Company common
stock using the
stock price on the date of grant for the Performance Share awards.
Specifically, benefits subject to the HP Severance Policy include: (a) separation payments based on a multiplier of salary plus target bonus, or cash amounts payable for the uncompleted portion of employment agreements; (b) any gross - up payments made in connection with severance, retirement or similar payments, including any gross - up payments with respect to excess parachute payments under Section 280G of the Code; (c) the
value of any service period credited to a Section 16 officer in excess of the period of service actually provided by such Section 16 officer for purposes of any employee benefit plan; (d) the
value of benefits and perquisites that are inconsistent with HP Co.'s practices applicable to one or more groups of HP Co. employees in addition to, or other than, the Section 16 officers («Company Practices»); and (e) the
value of any accelerated vesting of any
stock options,
stock appreciation rights, restricted
stock or long -
term cash incentives that is inconsistent with Company Practices.
The
term of an incentive
stock option may not exceed ten years, except that with respect to any participant who owns more than 10 % of the voting power of all classes of our outstanding
stock, the
term must not exceed five years and the exercise price must equal at least 110 % of the fair market
value on the grant date.