The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer goods editor/analyst Austin Smith discuss topics across the investing world.
In today's edition, Brendan and Austin continue their series "Stocks the Market Hates," in which they discuss stocks with high short percentages. Today, they discuss commercial printer R.R. Donnelley, solar panel maker First Solar, and retailer J.C. Penney. Both Brendan and Austin believe that the short position for R.R. Donnelley is justified because of its high leverage and the fact that it operates in a declining industry with low barriers to entry. Both disagree with the high short positions on both First Solar and J.C. Penney. Brendan thinks First Solar is a hold because of its valuable intellectual property and low cost structure. Austin believes that the short positions on J.C. Penney are misguided because of its impressive cash flow and the hiring of Apple retail veteran Ron Johnson as CEO, which should help the company reinvent its stores.
R.R. Donnelley pays out a tremendous 8% dividend, but Brendan doesn't think it's sustainable long term. If you're interested in some solid and sustainable dividends on your quest for high-yielding stocks, The Motley Fool has compiled a special free report outlining our 11 top, dependable, dividend-paying stocks. It's called "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.
