Perspectives Blog

Every day is an Amazon delivery day

Paul DiGiacomo, Senior Analyst | December 19, 2013

With the rise of e-commerce, the revenue mix for parcel delivery is shifting from businesses to the consumer. Growth in residential packages helps UPS and FedEx volume but challenges profitability. If Amazon succeeds in disintermediating UPS and FedEx, other large shippers will follow. Recently, Amazon announced that it will partner with the United States Postal Service to deliver goods to its Prime subscribers on Sundays. The company will lau…

Garbage in, less garbage out

Paul DiGiacomo, Senior Analyst | May 9, 2013

Americans are generating more waste than ever, but a greater proportion is being recycled. Recycling business is profitable, but sales depend on commodity prices and revenue is less predictable. Traditional landfill waste companies may see slower growth as recycling continues to expand. Oh, I love trash! Anything dirty or dingy or dusty Anything ragged or rotten or rusty Yes, I love trash! Oscar the Grouch’s signature song underscores our unpa…

The cons of pro forma earnings

Paul DiGiacomo, Senior Analyst | January 7, 2014

Analysts assimilate data from many sources to evaluate a company’s underlying earnings potential. Over the last 20 years, company managements have adjusted generally accepted accounting principles (GAAP) results to aid analysis. As pro forma earnings proliferate, analysts must carefully evaluate treatment of reported results. As the fourth quarter comes to a close, analysts are adjusting their earnings estimates for the final months of the yea…

Quality milestone in the European recovery story

March 17, 2014

Business, economic and political news all point to a strengthening recovery in Europe. We foresee a period of low inflation and low interest rates in Europe. We favor domestic European plays over internationally-exposed stocks, with an overweight stance in banking and telecoms. By Paul Doyle, Head of Europe ex. UK equities and Frederic Jeanmaire, Fund Manager, Threadneedle Investments After 18 consecutive negative months, the flow of eurozone…

The Yellen Fed

Zach Pandl, Portfolio Manager and Strategist | October 9, 2013

…tement: many people believe the Fed should be much more aggressive than it is today, and that the idea of tapering QE was a folly. But I think most economists would agree that Yellen falls to the left of center—e.g. closer to Paul Krugman than John Taylor, and probably closer to Krugman than Greg Mankiw. Pivot to the center: That being said, watch for a possible pivot to the center from Yellen in her public comments over the next couple of months…

The world has gone global. Have you?

Paul Berlinguet, Vice President, Equity Products | May 21, 2013

Many large companies derive significant revenue outside of the U.S. International markets offer both growth opportunities and attractive equity yields. Investors should consider global dividend funds as part of their current portfolio. The line between domestic and global securities has blurred. The top constituents by market capitalization of the S&P 500 index include Apple, Exxon Mobil, Microsoft and Johnson & Johnson. The MSCI All C…