Earlier this week IBM completed the spinoff of its infrastructure services business, which was named Kyndryl and began trading on Thursday under the ticker symbol KD. IBM investors received 1 KD share for every 5 IBM shares held. Kyndryl shares are not worth much compared to IBM, representing less than 5% of the two firms' combined market value. Rather than maintain such a small position in the spinoff, some IBM investors have likely chosen to dump their new Kyndryl shares and reinvest the money in core positions instead. Kyndryl's investment proposition is lacking for conservative income investors, too. The firm does not plan to pay a dividend in the near term, and its revenue declined at a mid-single-digit clip in [...]

Lockheed Martin slumped about 12% on Tuesday following disappointing guidance. Based on the forecast Lockheed provided in August, analysts had expected the defense giant's sales to grow roughly 3% next year. Instead, the firm this week nudged its 2021 revenue guidance lower and now sees sales next year falling about 1.5%. Management then expects low single-digit revenue growth through 2026 as the business roughly tracks the pace of expansion in the U.S. military budget. A handful of factors drove the disappointing outlook for 2021 and 2022. Most notably, pandemic-related supply chain delays worsened in August and September, reducing sales volumes across several production programs. Lockheed's F-35 fighter jet program, which accounts for nearly 30% of revenue, will also see a slight [...]

Shares of telecommunications companies like Verizon have been under pressure this year following record spending in the C-Band spectrum auction.With fierce competition to be a leader in 5G capabilities, telecom companies proved willing to go deeper into debt to ensure they were not left behind with inferior networks.Earlier this year, we wrote a note on Verizon that covered the importance of 5G and the potential impact of the record spend on additional spectrum licenses.As we expected, following Verizon's record $45 billion purchase of C-Band spectrum licenses, the company's debt ratio spiked to 2.9x, well beyond the firm's targeted 1.75 to 2.0x range.

Physicians Realty is a self-managed healthcare REIT with ownership in nearly 300 top-tier medical office buildings (MOB's) across 31 states.Since its founding in 2011, the REIT's portfolio has become more evenly balanced between properties located on campus with a hospital, an area it was far more concentrated in earlier on, and off-campus properties found closer to where patients live.Off-campus properties have become increasingly in demand because they tend to be more profitable for health care providers thanks to fewer government regulations and better reimbursement rates.