Editors' Picks Daily: Intriguing Dividend Ideas And Valuable Market Outlook
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The following summary of our Editors' Picks for the previous trading day is a new feature on Seeking Alpha. Each article listed below has been selected by our editorial staff as a widely appealing and highly convincing analysis with a clear actionable takeaway. Please use the comment box at the end of this article to express your thoughts. We are grateful to hear your feedback.
Picks of the Day What Junk-Rated Netflix Just Said About The Bond Market by Wolf Richter
Netflix’s (NFLX) recent $1.6 billion junk-bond offering was at a price that doesn’t compensate investors for its risk, according to contributor Wolf Richter. As its cash flow gets progressively worse, Netflix is beginning to prioritize borrowing money over making money, argues the author. When the market corrects, the author believes that stocks like Netflix will see major declines. In the end, Netflix bond holders should understand that they’re taking risks that are linked to the underlying company’s stock performance.
Tags - Bonds, Junk Bonds, Economy
10% Dividend Yield Is Scarier Than Any Halloween Monster by Colorado Wealth Management Fund
Before going into a discussion on Annaly (NLY), the author argues that the mREIT sector is massively overvalued with NLY leading the way. The author uses NLY, a company that is believed not to care about its shareholders as support for his... Read more