Capital Ideas, Inc. is a Dallas, Texas-based RIA established in 1984. CJ Brott (pictured) and Karen Burns are the two founding principals and have access to many industry contacts, which they draw upon when making investment decisions. Capital Ideas adopts an approach to stock selection that
is primarily “bottom up” in nature. The method is to thoroughly investigate the dynamics of the prospects and then identify a specific reason for investing. Attempt to control investment risk by investing only in personally researched companies.
Capital Ideas manages Covestor’s Macro Plus Income model, which
is designed for investors who are five years either side of retirement. That is, we try to invest in securities suitable for income reinvestment before retirement.
Current top positions include the SPDR S&P MidCap 400 ETF (NYSE: MDY), Quicksilver Resources (NYSE: KWK) and Baltic Trading (NYSE: BALT). On March 29, Capital Ideas added JDS Uniphase (Nasdaq: JDSU) to the portfolio. JDSU is a provider of communications test and measurement solutions and optical products for telecommunications service providers, wireless operators, cable operators, and network equipment manufacturers.
The Motley Fool recently noted that JDSU’s management is creating value:
With an EVA momentum of 6.8%, JDS Uniphase’s economic value added increased year over year, placing it in the 79th percentile of all companies in the Russell 3000. Two of the three remaining companies had positive EVA momentum over the past 12 months. Remarkably, JDS Uniphase has consistently increased its economic value added over the past three years.
Businesses with high EVA momentum are effectively creating value. It will be interesting to see how useful this extremely new metric proves for companies and investors. If it lives up to its promise, EVA momentum will be an essential tool in investors’ arsenals.
Zacks Equity Research also noted a new contract that JDSU had been awarded:
As per the contract, JDS Uniphase will offer extensive IPTV service to Saudi Telecom customers. The service will help Saudi Telecom to identify and resolve IPTV service and network quality issues as well as offset complex procedures.
JDS Uniphase will also conduct other services such as consulting, project management, product maintenance and training services along with integration and customization of third-party products.
Sources:
“JDS Uniphase’s Management Is Creating Value” Dan Dzombak. The Motley Fool, 3/30. http://www.fool.com/investing/general/2011/03/30/jds-uniphases-management-is-creating-value.aspx
“JDS Uniphase Wins Contract” Zacks Equity Research, 3/25. https://finance.yahoo.com/news/JDS-Uniphase-Wins-zacks-1835884611.html
