No. of Recommendations: 2
Morningstar article entitled:
"10 Cheap, High-Quality Stocks with Growing Yields"
https://www.morningstar.com/articles/880881/10-cheap-highqua...
excerpt:

$/FV Yield Div Growth Symbol Name
0.62 1.05% 21.40% MCK McKesson
0.63 3.60% 10.20% CAH Cardinal Health
0.78 1.67% 11.32% MCHP Microchip Technology
0.80 2.25% 8.23% BLK BlackRock
0.80 2.72% 10.76% BEN Franklin Resources
0.82 2.39% 17.32% SUBX Starbucks
0.83 1.72% 24.08% ABC AmerisourceBergen
0.84 2.49% 22.93% MCD McDonald's
0.86 3.38% 5.94% PG Proctor & Gamble


The Morningstar article highlights (with more detailed comments) MCHP, SBUX and GIS

-Jeff
Long MCK and CAH
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Hi Jeff,

Thanks for posting this.

FWIW: I'm somewhat skeptical of Sonia Vora as an analyst. An example as to why, "In general, Vora thinks General Mills' stewardship of shareholder capital has been decent,"

This for a company that spent billions buying back shares at prices north of $55 per share for years prior to issuing stock to buy Blue Buffalo at $43 or $44.

That's one of my cardinal sins of capital allocation and GIS has been in my s$it house ever since even though I own a very small position that has gotten even smaller thanks to GIS's capital allocation prowess.

Rich
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Hey Rich -

For what it is worth, another Morningstar analyst (Zain Akbari) was bullish on Blue Buffalo in 2017 (prior to their acquisition by General Mills): https://www.morningstar.com/articles/811180/blue-buffalos-a-...

Following the Blue Buffalo acquisition earlier this year, Morningstar analyst Sonia Vora viewed the purchase as a fair purchase that slightly increased "Fair Value" (M* notion of intrinsic value): https://www.morningstar.com/articles/811180/blue-buffalos-a-...

As you and I have previously discussed, I look for a large "margin of safety" which typically requires that Mr. Market really dislike a stock. General Mills (NYSE:GIS) isn't yet there for me- but I'd probably buy shares if the stock price dropped another ~10%.

-Jeff
no position
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> The Morningstar article highlights (with more detailed comments) MCHP, SBUX and GIS

I've been meaning to note that I purchased Microchip Technology (MCHP) in October - a few weeks after my September 2018 post. MCHP is up significantly year to date after Microchip's management team "called the bottom" of chip demand with expectations of a rebound in 2019 Q2. I'm a holder not a buyer at current prices.

-Jeff
Long MCHP
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fwiw, Barron's discussed TSMC as well positioned for a "cold-war" between America and China over semiconductor tech...

https://www.barrons.com/articles/the-cold-war-in-tech-is-rea...

-Another Rob
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I previously said:
> I purchased Microchip Technology (MCHP) in October [2018]

Late last year (October/December of calendar 2019), I sold a little less than ~50% of my MCHP (Microchip) position @ ~$100/share against a cost basis of ~$70/share.

MCHP has subsequently climbed to ~$110/share.

I believe Microchip is currently fairly valued.
I am not a seller (nor buyer) at current prices.

-Jeff
Long MCHP
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