The Anna Maria Island Sun Newspaper

Vol. 14 No. 26 - April 23, 2014

BUSINESS

Cuts, color & community service

Anna Maria Island Sun News Story

LOUISE BOLGER | SUN

In addition to offering salon services, Lorie Hagele
is committed to working with cancer survivors and
those susceptible to germs and harsh chemicals.

Salons are identified with the personal services they offer, usually centered on hair and nail care. But not very many salons view themselves as a safe haven for their customers, especially those who require a purified environment.
Lorie Hagele moved to Anna Maria Island 16 years ago and like so many other Island transplants, was done with Northern winter weather. Five years ago, she took her now over 30 years of experience in the salon business and opened her own miniature salon Cuts & Color 2 Dye 4.

Hagele packs a lot of services into her tropical salon studio, not the least of which is her undivided attention to the person sitting in her chair. Haircuts and color are Hagele’s specialty, but she is also a licensed cosmetologist offering all natural facial peels, skin care, waxing and make up. She has a lot of experience repairing damaged hair and fixing bad cuts.

And if you want to transform your body in 45 minutes, Cuts & Color is the place to go. Hagele offers That Crazy Wrap Thing, which tightens, tones, firms and lasts about three days. It costs $25 and can be combined with a facial, resulting in a new you in less than an hour. Cuts & Color works with men and women of all ages and accommodates walk-ins.

But Hagele’s heart really lies with her commitment to working with cancer survivors and anyone who is susceptible to germs and harsh chemicals. She has been trained in the “Look Good Feel Better” program from the American Cancer Society, and teaches the program at Blake Hospital. Her salon has an air purifier and since her small space can only accommodate one customer at a time, the salon remains relatively germ free.

Cuts & Color uses only an organic yogurt based color line, enzyme developers and never peroxide. All of the products offered at Cuts & Color are environmentally friendly and free of ammonia, silicone, paraben and fragrances. In addition, Hagele uses Eufora a product line that is made from pharmaceutical grade aloe and not tested on animals. John Amico products are also offered for sale in her salon.

She just added a line of products from Italy called Kemon Italian Hair Fashion and is adding more clean green products to her already large inventory. Hagele can also assist cancer survivors with wigs and head dressings in the privacy of her tiny salon. She also works with Girl Scout Troop 316 in its Cuts For Cure fund raisers as well as volunteering at St. Bernard’s Church and other community activities.

To celebrate five years in business Hagele will be offering complimentary gifts this spring, so watch for her ad in this newspaper. She wants to thank the community, her local clients and visitors for supporting her during the past five years.

Hagele says “It’s about what I can do for others” that makes me happy. She offers her business not only as a salon to the residents and visitors to Anna Maria, but also as a safe haven where cancer survivors can take advantage of personal one on one service and healthy organic products. Who doesn’t need a safe haven every now and then?


CUTS & COLOR 2 DYE 4

5386 Gulf Drive
Holmes Beach
941-565-6022

Monday – Saturday
Open on flexible Island time

MasterCard, Visa & Discover accepted

 

Anna Maria Island Sun News Story

Dividend growth stocks cheap compared to high yield stocks

Investment Corner

The argument of whether U.S. equity prices are cheap, fairly valued or expensive relative to historic valuation measures is being waged in the media on a daily basis. One theory that cannot be easily refuted is the idea that companies which raise their dividend frequently and aggressively are much more reasonably valued than the companies which sport higher, but more stagnant dividend yields.

The stock market can be divided for purposes of analysis many ways. Large companies vs. small, dividend paying stocks vs. non-dividend paying stocks, and as indicated above, rising dividend companies vs. stagnant dividend payers.

It is pretty obvious that U.S. stocks are no longer cheap after a five year bull market from 2009 to 2014. However, we don’t believe stocks are over-priced when compared to still very low bond yields and given the improving economy, which should allow profits to continue to expand for the foreseeable future.

Recent data comparing the average price to earnings (PE) ratios of companies that are the most aggressive at raising their dividends are lower than the PE ratios of the companies which have higher, but more stagnant dividend payouts. This is a result of the ultra low interest rate environment we have been in for several years and investors being attracted to the stocks that pay the highest dividend yields as they clamor for more income. This attention from investors has resulted in one of the widest valuation differences between rising dividend and high yield dividend companies in the last 60 years, with rising dividend companies now being the better value in my opinion.

What does this mean for investors? The first thing we need to acknowledge is that one group of stocks being cheaper than another does not mean that stocks can’t go down in price. Bear markets will occur and affect stocks of all types. I expect that high quality, rising dividend companies may fare better in the next bear market than stagnant dividend companies, but we cannot guarantee that result.

I think the important message for investors is that there is more risk in reaching for yield by purchasing the highest yielding companies, which may not offer as much underlying growth of the companies business. In other words, it might be better to buy a company yielding 2.5 percent today, with a dividend growing at 15 percent per year than to buy a stock yielding 5 percent, but not increasing year to year. Yes, you will sacrifice some current yield in the short-term, but eventually have a higher yield due to the rising dividend income and also the potential for capital appreciation.

In summary, those reaching for the highest current yield may suffer more in the next bear market (when it arrives) than those willing to accept a lower yield now with the prospect of higher future income and superior price appreciation potential.

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. Visit www.breitercapital.com.

 


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