275  7TH Ave  7th floor New York , NY 10001                                                                                                                dcullinanecpa@yahoo.com

​                                                                                                                                                                                                     Chelsea / Lower Manhattan​​

​Daniel Cullinane CPA                                   p 848-250-9587                                                                                                                                     


Wal-Mart Stores Inc. (NYSE: WMT), like many other retailers, thinks that Black Friday really begins Thanksgiving evening, after the family dinner and nap. The company plans to open stores at 6 p.m. local time, but online shoppers can take advantage of Black Friday pricing beginning at 12:01 a.m. Thanksgiving morning.

The company also has a deal for shoppers who can’t wait another two weeks. Walmart is offering a four-day pre-Black Friday sale that began at midnight this Thursday morning and runs through Sunday November 12.Walmart’s 32-page Black Friday advertising supplement is now available as a scanned image at BFAds.net, as is the advertising supplement for the current four-day sale. In an email, Brent Shelton of BFAds noted that for the first time in a long time, there is no mention of Walmart’s infamous 1-Hour Guarantee. And details on which items will be available online are also scarce.

Here are some items of note from the Black Friday sale:

55-inch Sharp 4K Ultra HD TV for $298
43-inch Vizio 1080p TV for $198
Sony PlayStation 4 1TB Console plus controller for $199, a savings of $100
Hewlett Packard Stream Laptop 14-inch laptop for $179, a savings of $40
Google Home Mini for $29 plus a credit of up to $25 while supplies last

And if you can’t wait, here are a couple of items available this weekend:

Sky Rider Falcon 2 Pro Drone for $29.97, a savings of $8.12
Microsoft Xbox One S 50 GB console bundle with game and extra controller for $249


Valeant Pharmaceuticals International Inc. (NYSE: VRX) reported third-quarter 2017 results before markets opened Tuesday. The company reported quarterly diluted earnings per share (EPS) of $3.69 and revenues of $2.22 billion. In the same period a year ago, Valeant reported a loss per share of $1.08 on revenues of $2.48 billion. Third-quarter results also compare to consensus estimates for EPS of $0.90 and $2.17 billion in revenues.

Adjusted EBITDA totaled $951 million, compared with $1.16 billion in the year-ago quarter. Valeant attributed the revenue declines to the loss of exclusivity impact on the U.S. Diversified Products segment, volume declines in the Ortho Dermatologics business and the previously announced divestitures, partially offset by lower selling, general and administrative and research and development expenses.Net income for the quarter totaled $1.3 billion compared with a net loss of $1.22 billion in the third quarter of 2016. The company attributed the sharp swing mainly to the increase in the benefit of income taxes for the quarter, primarily due to the completion of the internal tax reorganization efforts begun in the fourth quarter of 2016. The completion of these efforts generated a tax benefit of $1.4 billion in the quarter.

CEO Joseph C. Papa commented:

Our strong third-quarter performance demonstrates our continued progress in the turnaround of Valeant. Driven by solid execution in our Bausch + Lomb/International segment and our Salix business, we delivered strong organic revenue growth1 across approximately 77% of our business in the quarter. Valeant is a very different company today than it was a year ago. Under a new management team, we have strengthened our balance sheet and stabilized the Company by simplifying our business and allocating resources more efficientlyValeant maintained its guidance for 2017 adjusted EBITDA in a range of $3.60 to $3.75 per share. Full-year revenue guidance was trimmed from a prior estimated range of $8.7 billion to $8.9 billion to a new range of $8.65 billion to $8.7 billion.

Updated guidance reflects the impact of the sales of the CeraVe, AcneFree and AMBI skin care brands; the sale of Dendreon Pharmaceuticals; the sale of the iNova Pharmaceuticals business; and the sale of the Obagi Medical Products business, which is expected to close before the end of this year.The better-than-expected profits and the improved guidance sent shares sharply higher in Tuesday’s premarket session. The stock traded up about 12.2% to $13.51, in a 52-week range of $8.31 to $19.13

​Investment advisers tell you that you might need more than $1 million in assets to be able to enjoy retirement. Life’s ongoing costs are many — insurance, medicine, food, transportation, bills, vacations, and entertainment — and the ability to pay for all these expenses can be difficult when you have limited income from Social Security and retirement funds.

It is essential for savers to consider their retirement plans long before they get into their 50s or 60s. Those who start saving in their 20s and 30s will have a huge jump over those thinking about how to save when they are 10 or 15 years away from retiring. Using a traditional IRA (individual retirement account), Roth IRA, SEP-IRA, or 401(k) plan is a must for those who want a comfortable retirement.

If you have not saved much and are in the years approaching retirement, there are still actions you can take to make your golden years golden. It’s never too late to start saving, and traditional retirement vehicles are a great place to start.

Using traditional retirement plans is the most common wealth builder for those seeking a secure retirement. A combination of that, plus extra work, considering your other retirement options, avoiding some easy mistakes, and investing on the side can all get you that $1 million goal for your retirement.

​1. Social Security Payments

The good news is you likely already saved something toward your retirement by contributing to Social Security. The vast majority of non-retirees have no clue what their social security payments will be. Fortunately, there is a Social Security calculator that shows you how much you will earn in your retirement years, whether the government says your full retirement age is 65 or 67.

Source: Thinkstock

2. Traditional Retirement Plans

Whether it’s a simple IRA, a Roth IRA, or a 401(k) plan, these are all retirement vehicles for the American worker. Taxes are deferred until retirees begin to withdraw from these accounts, so this money — including the withheld taxes — can grow until then. This allows for workers to save more than $10,000 per year in many cases, and some employers match contributions.

Saving $5,000 to $10,000 a year without taxes, and then seeing that magnified by employer matching funds and compounding of dividends and interest can add up even if you are in your 50s. Everyone is a consumer, but the less you spend that you don’t have to spend gives you more money to put toward savings. All of those savings can help fund your retirement plans from IRAs to 401(k) plans.

Source: Thinkstock

3. Stocks, Bonds, or Cash

If you are investing in 401(k) or IRA plans, you usually control how that money gets allocated among stocks, bonds, and cash. Stocks have traditionally had the highest return and the highest risk; bonds offer steady returns and lower risk; and cash brings comfort but no returns. Choosing all bond investments in your 20s won’t provide enough growth over the next 40 years to generate a large enough retirement nest egg.

Investing in all stocks and taking too much risk in your 50s and 60s can crush a retirement portfolio if a market correction occurs in your final years before retiring. Cash never falls in value nominally, but it rarely outperforms inflation.

The general advice from financial experts is not to invest retirement funds too conservatively in your 20s to 40s, and not to invest too aggressively if you have already amassed a large retirement nest egg or if you are in your 50s and 60s

​4. Keep Working

Many people reach the traditional retirement age of 65 and keep working, some even into their 80s. Maybe they saved for retirement and work to keep busy, or maybe they need extra funds to live. Either way, working while in retirement provides extra income. The golden years are not cheap, and even if you don’t want to work 40-hour weeks you might want to work several days a week. There are opportunities as a consultant, a mentor, or even as a contract worker for companies that will want your skills from your working experience.

Source: Thinkstock

5. Understand the IRS Catch-Up Rules

The government understands that many people don’t save enough and early enough for retirement. The Internal Revenue Service has rules for catch-up contributions for 401(k) and IRA plans starting at age 50. These rules allow workers 50 years old and older to add more than the statutory limits ($18,000 for 401(k) in 2017) to ramp up their retirement savings in the 10 to 15 years ahead of the traditional retirement age. This, along with any employer match on statutory limits per year, can help the under-saved catch up for their retirement years.24/7 Wall St.
States That Spend the Most on Lottery TicketsSource: Thinkstock

6. Take Advantage of Compounding Interest

Warren Buffett and other investors have preached that the compounding effect of interestand gains over time is unrivaled by any other investing metric. Compound interest is the interest you earn each year that is added to your principal, so that the balance doesn’t merely grow, it grows at an increasing rate. Earning 6% on a $100,000 investment returns $6,000 per year, or $120,000 over 20 years. If, however, the amount gained each year is added to the principal ($106,000 after the first year), the 6% return is applied to a larger sum each year and growth is compounded. After 20 years, such an investment would be worth over $320,000.

Source: Thinkstock

7. Never Touch Your Nest Egg

Many 401(k) and IRA investors make the mistake of raiding their retirement funds before retirement. This can jeopardize retirement plans. Sometimes there are medical emergencies; sometimes families have personal emergencies; and sometimes families just want to spend the money on remodeling the kitchen or a new car. Don’t dip into your 401(k) and IRA funds ahead of time unless there are no other choices. You will have to pay interest if you borrow against those funds. And if you take the money out of the plan entirely, you will have to pay taxes on the funds you take out

​8. Avoid Fees

Take two similar index funds that are tracking the Standard & Poor’s 500 Index. If one fund has a 1% management fee and one has a 0.2% management fee, that is a 0.8 percentage point difference cheating your retirement funds out of your money. Now, most true index funds are competing to have the lowest fund fees, and this is a win for 401(k), IRA, and other retirement investors.

Source: Thinkstock

9. Don’t Time the Markets

Most 401(k) and IRA investors will not be successful timing the markets — investing at a low and divesting at a high. In fact, it may be the “time in the market’’ rather than “timing the market’’ that generates the most long-term gains for retirement investing. You can put money into the market and move into cash with every ebb and flow of the market, but your 401(k) and IRA isn’t going to grow that much if you are in cash or short-term bond funds on the few days a year that the Dow rises 200 points or more. Imagine if you were among those who sold out of stock funds in 2009 and only got back into stocks in 2017 after you felt safe. You missed 200% growth, as well as the compounding effect on the way up.I'm interested in the  Newsletter
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 Source: Thinkstock

10. Invest Beyond Statutory Limits

Just because your IRA or 401(k) plans may have annual limits, with employer matching funds or not, there is no reason you cannot build up a nest egg that isn’t just in retirement funds. You can buy stocks, ETFs, bonds, mutual funds, or anything that is expected to make money outside of retirement accounts. You will have to pay taxes on capital gains, dividends from stocks, interest from bonds, and the like, but this is a sure way to accumulate wealth on top of your traditional 401(k) and IRA retirement plans.



This was one of the worst years on record for the United States when it came to hurricane-related and natural disaster storm damage. For Houston alone, the fourth largest city in the United States, data from CoreLogic, a property analytics firm, predicts between $25 billion and $37 billion worth of flood loss, including homes across southeast Texas and southwest Louisiana. Hurricane Irma was predicted to cost around $100 billion worth of damages in Florida. While the storms have left the news cycle, the rebuilding is still just in the early stages.

While many may argue whether climate change had anything to do with the summer deluge of storms, data from the NOAA does show that it had been years since storms this strong hit the United States. In fact, the last major hurricane to make landfall in the continental United States was Wilma, which struck Florida as a Category 3 on October 24, 2005. The last Category 4 storm to make landfall in the United States was Charley, in Florida in August 2004. And the last Category 5 hurricane to devastate Texas was Carla in 1961.

The bottom line is these storms, while catastrophic for many Americans, are providing huge sales for four top companies. A new Merrill Lynch research report notes that there has been a substantial increase in natural disasters and storms since 1980, but few had the severity and impact of this summer. The report also notes that the extensive wildfires in the west and other disasters are also accounting for more and more damage. While disaster repairs account for only 1% of overall home improvement projects, they account for 5% of all home improvement spending.

Four stocks rated Buy at Merrill Lynch could be big beneficiaries of the disaster repair.

Home Depot

This remains the undisputed leader in the home improvement retail category. Home Depot Inc. (NYSE: HD) is the world’s largest home improvement specialty retailer, with 2,270 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.Home Depot stores sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance and professional service programs to do-it-yourself (DIY), do-it-for-me (DIFM) and professional customers.The stock has rallied on the company’s strong fundamentals, as well as a highly consolidated industry position that separates it from other retail subsectors. Home Depot remains, clearly, the “best house on the retail block” with room for continued upside on strong traffic and share gains.The horrific storms that hit Texas and Florida this summer are almost certain to drive third-quarter results higher. Given the work to repair could take some time, the potential could continue well into 2018 and beyond. The research report noted the company has the largest exposure to the most disaster prone states at 36% of store locations. Home Depot is slated to report quarterly results on November 14.
Shareholders receive a 2.18% dividend. Merrill Lynch raised its price target to $190 from $170. The Wall Street consensus price objective is $171.70. Shares traded early Wednesday at $163.15.


This company is poised to see huge sales from this years events. Lowe’s Companies Inc. (NYSE: LOW) operates as a home improvement retailer, offering products for maintenance, repair, remodeling and home decorating.

Categories include kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions; storage and cleaning; flooring; millwork; and outdoor power equipment. The company also offers installation services through independent contractors in various product categories.

While Lowe’s doesn’t have quite the store coverage that Home Depot does, with only 31% of the stores in the disaster-prone states, two recent acquisitions by the company, Alacrity and Maintenance Supply Headquarters, could help it capture continued post-hurricane demand.

The stock trades at a price-to-earnings discount to Home Depot. Many expect Lowe’s to report strong earnings this month as the disastrous hurricane damage in Texas and Florida could drive earnings for multiple quarters. It is scheduled to report on November 21.

Lowe’s investors receive a 2.12% dividend. The $95 Merrill Lynch price objective compares with the consensus target of $84.73 and the recent share price of $77.50

Massive Damage From Natural Disasters Driving Huge Sales at 4 Companies

Floor and Decor Holdings

Founded in 2000, this is a smaller cap company that Merrill Lynch views as a beneficiary of storm-related events as well. The initial concept for Floor and Decor Holdings Inc. (NYSE: FND) focused on buyouts of product, but the company has since evolved.The stores carry all major categories of hard flooring (tile, wood, laminate and stone) along with decorative items and the accessories needed to complete a project. Some 40% of sales are to do-it-yourself-ers and 60% are to pros. The company currently operates 72 stores and is targeting more than 400 stores over the long term.
The company posted solid third-quarter results, and with 26% of the locations in Florida and southeast Texas, it is well situated for current rebuilding and future activity. The analysts noted this after earnings were released:Floor and Decor Holdings reported a strong third quarter with comps of 13.5%, only 50 basis points below our estimate even with a 2.5% negative impact from the hurricanes. The stores over three years old continue to comp in the high single digits and management reiterated its 20% store growth target. The company continues to perform extremely well and has one of the best sq. ft. and earnings growth opportunities in all of retail.

Merrill Lynch has a $47 price target, while the posted consensus estimate is $41.71. Shares were last seen trading near $40.20.

Tractor Supply
While not comparable to some degree to the other companies in this report, Tractor Supply Co. (NASDAQ: TSCO) is the largest domestic operator of retail farm and ranch stores, with 2016 revenues of $6.8 billion. The company currently operates over 1,600 stores, with a longer-term build-out of potentially another 900 markets for its Tractor Supply stores and 1,000 Petsense stores.While not big-box home improvement related per se, the company offers patient accounts outstanding value, and it is way overlooked by portfolio managers. The analyst said this in its earnings release report:
Tractor Supply reported its best comp in 16 quarters which breaks a trend of very inconsistent and negative comp preannouncements. Hurricane related demand and an extended selling season were a tailwind, but organic comps were still a very admirable 4.4% The magnitude of the earnings beat should be a good start in calming concerns that the company is facing heightened online competition.

Investors are paid a 1.83% dividend. Merrill Lynch has set its price objective at $66. The consensus estimate is $61.04, and shares traded at $59.80.

China has tested and will start to produce its own commercial aircraft, which has been viewed as a challenge to Boeing Co. (NYSE: BA) and Airbus. The nation’s long-term plans to create and build its own industry did not stop a deal under which Boeing will sell $37 billion worth of its commercial airplanes to companies in the People’s Republic.

The U.S. aerospace giant’s management announced:
Boeing and China Aviation Suppliers Holding Company (CASC) today signed an agreement for 300 airplanes during a ceremony in Beijing. It was part of the United States trade mission to China, and was signed by Kevin McAllister, Boeing Commercial Airplanes president and CEO, in the presence of US President Donald Trump and China President Xi Jinping.
The agreement includes orders and commitments for 300 Boeing single-aisle and twin-aisle airplanes. The airplanes are valued at more than $37 billion at list prices.

In May, China’s C919 took off for its first flight. It is a twin jet engine, single-aisle aircraft. The plane was built and designed by Commercial Aircraft Corp. of China (Comac), which is owned by the government. Outsiders believe that the government’s plan it to build thousands of commercial planes to elbow Boeing and Airbus out of what is likely to become the world’s largest commercial market.

Either the Chinese government wants to make a show of cooperation with the United States in terms of trade balance, and the Boeing deal is a sign of good faith, or the C919 will not be ready for service for many years. Under one set of circumstances, Boeing is being handed a large bone. Under the other, its future in China is not as bleak as some aviation experts believe.

For the time being, Boeing has received one of the larger orders in its history.




​Over the past year, U.S. home prices have risen about 6% as the housing market recovery continues. One of the main reasons for the increase has been low inventory of houses for sale, particularly lower-priced homes for first-time buyers. But buyers lucky enough to find a home are making mortgage payments about 10% higher than they would have paid last year.

Mortgage rates have risen about half a percentage point year over year, even though they remain low historically, hovering around 4.000% to 4.125% and while inflation remains low — below 2% — it still adds up.

CoreLogic calculates a “typical mortgage payment” as the mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment. It does not include taxes or insurance. The firm says that this typical payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for in order to get a mortgage to buy the median-priced U.S. home. When adjusted for inflation, the typical mortgage payment also puts current payments in the proper historical context.

Citing an estimate from research firm IHS Markit for a mortgage rate increase of about 70 basis points between August 2017 and August 2018, CoreLogic offers the following estimate:

The CoreLogic Home Price Index forecast suggests the median sale price will rise about 3.0 percent in real terms over the same period. Based on these projections, the inflation-adjusted typical mortgage payment would rise from $816 this August to $908 by August 2018, an 11.3 percent year-over-year gain. Real disposable income is projected to rise about 3.6 percent over the same period, meaning next year’s homebuyers would see a larger chunk of their incomes devoted to mortgage payments.