But the Bernstein analysis highlights a positive result will be higher recurring revenue as a percentage of total with potentially higher cash return to investors.
The question is how the valuation will react to this shift in mix.
At the time of publication, Kass had no positions in stocks mentioned.
Nothing Is Certain
Originally published on Thursday, Oct. 4 at 2:31 p.m. EDT.
- In 2006, it was said that home prices would never decline in a 12-month period.
- Up until recently, there was near unanimity that Apple's (AAPL) shares would only rise. But since the shares went through $700 on the upside, the stock has been an underperformer. The shares are down by $5 today in an otherwise solid market backdrop.
- Last night on "Fast Money," it caught my attention that there was total unanimity that the price of crude oil would continue its southerly course. The only argument was when to short oil. Today the price of crude is up by nearly $3.50 a barrel!
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV