Saturday, November 22, 2014
The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
The health care boom has made a fortune for many Stansberry Research subscribers...
For years, we've recommended loading your portfolio with some of the highest-quality names in health care. The thesis was simple: As Baby Boomers near retirement, they will require more health care. Over the next 20 to 30 years, the older segment of our population will explode. And aging Baby Boomers will spend a fortune on everything from nursing homes to pharmaceuticals and life-saving devices.
Dr. David "Doc" Eifrig's Retirement Millionaire subscribers are sitting on several big winners from the health care boom. As he wrote in May 2011...
In addition to the demographic trend, Doc also expected the government to spend more money on health care...
Retirement Millionaire is sitting on five triple-digit winners in the health care sector, including pharmacy chain CVS Health and Big Pharma firm Eli Lilly.
Another one of his health care picks – medical-device maker Medtronic – hit an all-time high this week. Doc recommended shares in February 2011, in part because the company is on the cutting-edge of devices to treat heart and brain diseases – both huge problems for the elderly. As Doc explained in that issue...
Doc paid 10 times earnings for Medtronic, about half the valuation of the average S&P 500 company at the time.
On Tuesday, Medtronic reiterated its intention to buy Covidien for $42 billion. Covidien makes simple but essential medical supplies like bandages and staples.
The merger will make Medtronic "one of the most powerful companies in health care," Doc said last week.
And the good news continues for Medtronic... According to a recent report from investment bank JPMorgan, Medtronic could increase its dividend by 50%. Medtronic currently yields 1.7%, versus 2.8% for competitor Johnson & Johnson. But its deal with Covidien may help close that gap. From Barron's...
Retirement Millionaire subscribers were up 92% on Medtronic as of yesterday's close.
And Wednesday, another company in the Retirement Millionaire portfolio hit an all-time high: retail giant Target.
Target just announced a fantastic quarter, sending shares up 7.3%. (Target's earnings came in after its largest competitor, Wal-Mart, recently reported a blockbuster quarter.)
Doc recommended Target shares in February when the company was embroiled in a data-breach scandal. Hackers stole the credit-card and personal information of more than 100 million customers. It was the largest retail hack in U.S. history.
As a result, shares fell 23% in six months. In these cases, you have to ask yourself... Is Target's business worth 23% less in six months because sophisticated hackers broke into its files? Of course not. Doc understood Target would continue to produce big retail profits long after the drama passed.
The earnings report proved Doc's thesis was correct... Third-quarter revenue rose to $17.7 billion, up 3% from $17.3 billion in the same period of 2013.
Target's $0.55 in earnings per share (EPS) bested analyst expectations of $0.40-$0.50 for the quarter. The company expects fourth-quarter EPS between $1.13 and $1.23 and anticipates EPS of $3.15-$3.25 for 2014.
Same-store sales – an important retail metric – rose 1.2%. Online sales jumped 30%. In the November 11 Digest, we detailed Target's efforts to compete in digital sales... including offering free shipping on online orders until December 20.
Chairman and CEO Brian Cornell said Target is "encouraged by the improving trend we've seen in our U.S. business throughout the year."
As we all know, good results mean the company can pass more money along to shareholders. Target paid $330 million in dividends in the third quarter, a 21% increase from the same period last year. The company also recently hiked its quarterly dividend from $0.43 to $0.52 per share... a 21% rise.
Since February, Retirement Millionaire subscribers are up 28% on Target.
If you aren't already a Retirement Millionaire subscriber, now is the perfect time to test the waters... In his latest issue, Doc reviewed his entire portfolio... explained why the next two years will be a great opportunity to build wealth... and told readers exactly which stocks you should buy today. These are high-quality businesses that pay solid dividends – including one blue-chip firm paying a 5%-plus dividend today.
You can sign up for Retirement Millionaire for only $39... And if you decide it's not for you, we offer a 100% money-back refund. Learn more here.
Date Range:11/13/2014 to 11/20/2014
Date Range:11/13/2014 to 11/20/2014