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Neiman Funds Management Partner Dan Neiman on why companies with an earnings miss may be a great opportunity for investors.
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-- moving higher.
So corporate earnings you just heard -- reference those and everybody's really looking at them for some type of -- dollar guidance -- my next guest is keeping a close eye on corporate earnings but forget about the over achievers.
He is putting a flip on this message okay he says -- on -- myths.
Dan -- don't quite meet debt payment -- -- funds management partner joining me for the last effort to show me how this.
-- spying on a miss vs buying on the dip yes it's not as -- -- and I missed it when earnings come out or coming lowers guidance on the specifics stock or -- quarterly earnings.
I would take a look at those earnings and see what happens is the company still growing earnings and revenues -- still turning over and increase in sales year over year.
If they miss estimates that's okay as long as they're growing so basically on the good company going through a slight tough time kind of theory -- having tore through a tough time you have an example an example of Chubb.
-- a great companies enhanced dividend from a long time I think they've increased dividends over four years in a row -- they continue to grow earnings and revenues.
They -- numbers in July if profit was down 4%.
Down 4% year over year well now it's an all time highs so if you had bought at that time -- was down 4% you may be better off today owning -- So you're saying this is your chance to buy something you really -- -- on sale because there was a slight nick or -- mark on it that you could then quickly -- within the next quarter.
Yeah you can -- next quarter -- if you're a long term holder of the stock you really wanna dividend or you you see that the numbers really look that get on the value side -- You can buy it yet another example another examples Costco Costco just lowered our charged now with your numbers.
Growing revenue by 14% but stock was -- all time high -- 102.
Took a five dollar correction and now -- seen as a buy you love.
This company because it's one of your most of the largest holdings there but you also own a some of the railroads which I think is interesting especially because what when I sure what your fund which is the large cap value fund.
But basically large cap value except you've got a bunch of railroads in here everything from Union Pacific.
We do rare roast -- a dividend we see growing earnings and revenues and rail we see more use of -- as far as transportation goes over the long haul as.
We've we've talked about -- before as companies use -- to provide cheaper.
Transportation for their products BC doesn't growth growth.
Stock in the -- sector not as worried about the concern of coal and perhaps a slower economy -- people moving into natural gas because so much cheaper I think the -- come and take advantage -- in the long -- and that would better -- -- investors -- for the long -- you know we're trying to build -- portfolio and I think they've got -- -- -- take -- bottoms -- approach to find suffer fewer bonds -- -- approach you're looking -- no debt -- the PE -- -- revenues -- earnings -- not looking -- sector -- you're looking at.
Companies as an individual and building a portfolio selected teachers.
-- type of content that I don't have any -- I have I have a loopy yeah exactly if that debt is coming back to name -- whole bunch of names give you a real sense of what he means and where.
He likes to -- on an earnings miss or at least a downward estimate.
