The Deck the Halls Top 5

[mrmarket]

Here are my 5 favorite picks from the most recent data dump. I will buy one of these before the new year:

CASH CENT IDCC KNOP MPX

Which one do you like? and why??

[tiedyed1]

Good morning and Happy Holidays to all.

There are two that I like here; IDCC and KNOP.
I have written my opinions on IDCC in another post recently, but I am asking myself what's not to like about KNOT Offshore (KNOP).
A small company that has 10 (correction, 11 as of recent acquisition of another tanker in Brazil) shuttle tankers in long term contracts operating in the North Sea and Brazil. So the term$ and length of the contracts (along with the age of the fleet) is what needs to be investigated here. (update: eleven vessels with an average age of 4.7 years and a fixed average employment of 5.1 years. Renewed contracts at higher rates is what we want to see and while I am not the expert here I believe that outlook for contract rates rising is good.) Looking at the chart and if it can continue paying a 9.00% dividend what's not to like?

So my take is that I like IDCC's portfolio of intellectual property and royalty cash machine (and it looks like they are smartly investing in other entities for further growth), but KNOP may be a solid pick at this time.

Ho Ho Ho and Keep On Keepin' On (and HUGE);
-Adam
Old Hippy & Mortgage Pro

[mimo_100]

I have to agree with the old hippy - KNOP is a MrMarket kind of stock.

[blindsquirrel]

CASH is my pick from those options.

[jiesen]

Good morning and Happy Holidays to all.

There are two that I like here; IDCC and KNOP.
I have written my opinions on IDCC in another post recently, but I am asking myself what's not to like about KNOT Offshore (KNOP).
A small company that has 10 (correction, 11 as of recent acquisition of another tanker in Brazil) shuttle tankers in long term contracts operating in the North Sea and Brazil. So the term$ and length of the contracts (along with the age of the fleet) is what needs to be investigated here. (update: eleven vessels with an average age of 4.7 years and a fixed average employment of 5.1 years. Renewed contracts at higher rates is what we want to see and while I am not the expert here I believe that outlook for contract rates rising is good.) Looking at the chart and if it can continue paying a 9.00% dividend what's not to like?

So my take is that I like IDCC's portfolio of intellectual property and royalty cash machine (and it looks like they are smartly investing in other entities for further growth), but KNOP may be a solid pick at this time.

Ho Ho Ho and Keep On Keepin' On (and HUGE);
-Adam
Old Hippy & Mortgage Pro

I haven't looked into it in much detail yet... but just to see if the dividend is reasonable, I compared it to earnings, and for 2013, 2014 and 2015, they've consistently paid out more in dividends than they earned ($15, $27, $40 million earned, vs $35, $37, $53 million paid out over those 3 years, respectively). But... they've also sold over $100M in stock each of those years, so as long as they keep doing that, they can keep paying out handsome dividends, too. If the stock drops, and they stop selling it, and/or if earnings drop, the huge dividends will also have to stop.

On the plus side, it seems they're also using the stock sales to help pay down the large debt (over $600M as of EOY 2015), which is good.

I kind of wonder how fast those ships they own depreciate, as the majority of their assets (likely over $1B) have to be those 11 ships.

[mimo_100]

I haven't looked into it in much detail yet... but just to see if the dividend is reasonable, I compared it to earnings, and for 2013, 2014 and 2015, they've consistently paid out more in dividends than they earned ($15, $27, $40 million earned, vs $35, $37, $53 million paid out over those 3 years, respectively). But... they've also sold over $100M in stock each of those years, so as long as they keep doing that, they can keep paying out handsome dividends, too. If the stock drops, and they stop selling it, and/or if earnings drop, the huge dividends will also have to stop.

On the plus side, it seems they're also using the stock sales to help pay down the large debt (over $600M as of EOY 2015), which is good.

I kind of wonder how fast those ships they own depreciate, as the majority of their assets (likely over $1B) have to be those 11 ships.

MrMarket normally looks for 16% in 4-6 weeks - who cares about depreciation and dividends?

[billyjoe]

These are all great stocks. I'd be tempted to buy some of each. CENT and CASH really stand out being the top stocks in top performing industry groups . It's hard to say which is best.

---------------billy