ICYMI: Watch Valuentum’s November 2019 Presentation on ‘Value Trap’ Now!
June 18, 2021
Watch Valuentum’s November 2019 Presentation on ‘Value Trap’ Now! — To view the November 2019 presentation of Valuentum’s book, Value Trap, please select the following link to continue: — https://www.youtube.com/watch?v=S-n9o9gYKdE&feature=youtu.be — — The November 2019 presentation to the Los Angeles chapter of the American Association of Individual Investors (AAII) of Valuentum’s President of Investment Research Brian M. Nelson’s new book, Value Trap, covers the pitfalls of valuation multiple analysis, traditional quantitative analysis (e.g., value factor, size factor) and the great contradiction between factor investing and the efficient markets hypothesis. — The November 2019 presentation shows how enterprise valuation rests at the intersection of behavioral economics, quantitative theory, equity valuation and therefore finance itself. Nelson talks about how enterprise valuation can be used
Best Ideas PayPal and Visa Have Ample Capital Appreciation Upside Potential
June 18, 2021
Image Shown: PayPal Holdings Inc’s digital wallet offers the firm multiple sources of upside. Image Source: PayPal Holdings Inc – February 2021 Investor Day Presentation By Callum Turcan The payment processing and fintech industries are incredibly lucrative and supported by powerful secular growth tailwinds such as the proliferation of e-commerce and the global shift away from cash (towards card, tap to pay, QR code, online, and other payment methods). PayPal Holdings Inc (PYPL) and Visa Inc (V) are two of our favorites in the space, and we include both firms as ideas in the Best Ideas Newsletter portfolio. PayPal’s Long Term Growth Prospects Are Immense PayPal offers an expansive slate of services for consumers and merchants including checkout and point-of-sale
Best Idea Alphabet on the Move!
June 16, 2021
Image Shown: Shares of Alphabet Inc Class C have been on a nice upward climb over the past several months with ample room for additional capital appreciation upside, in our view. We include shares of GOOG as a top-weighted idea in the Best Ideas Newsletter portfolio. By Callum Turcan Companies with real pricing power are well-positioned to navigate headwinds arising from inflation pressures as cost increases can be passed along to the consumer and then some (i.e. price increases above inflation). Many large cap tech firms fit this bill including one of our favorite ideas Alphabet Inc (GOOG) (GOOGL), with an eye towards the pricing strength seen at its enormous digital advertising business. We include shares of Alphabet Class C
Dividend Growth Idea Oracle Stepping Up Cloud Investments to Build on Recent Momentum
June 16, 2021
Image Shown: Oracle Corporation’s pivot towards cloud computing offerings continues. We include Oracle as an idea in our Dividend Growth Newsletter portfolio and continue to view its payout growth trajectory quite favorably. Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 15, Oracle Corporation (ORCL) reported fourth quarter fiscal 2021 earnings (period ended May 31, 2021) that beat both consensus top- and bottom-line estimates. The company’s GAAP revenues climbed higher 8% year-over-year and its GAAP operating income grew 5% year-over-year in the fiscal fourth quarter. Oracle cited growth at its Fusion and NetSuite cloud applications businesses along with growth at its Gen2 Cloud Infrastructure business as driving its financial performance in the fiscal fourth quarter.
Dividend Growth Idea Republic Services’ Solid Long Term Outlook
June 16, 2021
Image Shown: An overview of Republic Services Inc’s expansive waste management operations across the US. We include shares of Republic Services as an idea in our Dividend Growth Newsletter portfolio. Image Source: Republic Services Inc – May 2021 IR Presentation By Callum Turcan The waste management business is highly appealing when it comes to finding potential dividend growth opportunities. Our favorite idea in the space, Republic Services Inc (RSG), is included in the Dividend Growth Newsletter portfolio. Shares of RSG yield ~1.5% as of this writing and have been on a nice upward trend during the past few months. The top end of our fair value estimate range sits at $125 per share (RSG trades at ~$110 per share at
Risk Management: Diversified Stock Selection or Modern Portfolio Theory?
June 15, 2021
Image Shown: If one had concentrated in large cap growth the past 10 years (blue fill), or basically in undervalued stocks that had strong momentum, one would have outperformed the category of small cap value (IWN, second best in chart) and the 60/40 stock/bond portfolio (VBINX, orange) by an incredible 200+ percentage points. Image Source: Morningstar. By Brian Nelson, CFA I hosted a small estate sale late last week. Hours in the blistering sun brought a number of interested buyers and some small change, but that several people and families found use for my brother’s things has left a feeling in me that’s priceless. It’s been a while since one of our emails hit your inbox, but things have been slow
Dividend Growth Idea Qualcomm Proactively Managing Fallout from Global Chip Shortage
June 15, 2021
Image Shown: Qualcomm Inc, one of our favorite semiconductor firms, noted in March 2021 that the rollout of 5G wireless networks is accelerating which in turn supports its outlook. We include shares of QCOM as an idea in our Dividend Growth Newsletter portfolio. Image Source: Qualcomm Inc – 2021 Annual Meeting of Stockholders IR Presentation By Callum Turcan One of our favorite ways to gain exposure to the semiconductor industry is Qualcomm Inc (QCOM), and we include shares of QCOM as an idea in the Dividend Growth Newsletter portfolio. Qualcomm’s IP portfolio and the “chips” that it designs play an essential role in enabling 5G connectivity in smartphones, powering the digital capabilities of modern automobiles, and supporting wireless network operations
Vertex Pharma Still Extremely Healthy Even After VX-864 Disappointment
June 14, 2021
Image Shown: Vertex Pharma has a huge net cash position on the balance sheet offering it tremendous financial flexibility. Image Source: Vertex Pharma. By Brian Nelson, CFA A broadly diversified stock portfolio of 15-25 securities or no less than 15 securities across most, if not all S&P 500, sectors may make sense for a lot of long-term investors. Included in this diversified mix of equities may be biotech exposure, and our favorite way to play the speculative biotech space, albeit in a very small allocation in the Best Ideas Newsletter portfolio, is with Vertex Pharma (VRTX). We’re not making any changes to the newsletter portfolio in light of news of a recent setback at the company. On Thursday June 10,
CubeSmart Outperforms and Boosts Its Full-Year Guidance
June 11, 2021
Image Source: CubeSmart – June 2021 IR Presentation By Callum Turcan We are big fans of the self-storage real estate investment trust (‘REIT’) industry given the ability for firms operating in this arena to generate meaningful free cash flows, a difficult task for most REITs considering their hefty capital expenditure requirements. CubeSmart (CUBE) is one of our favorites in the space and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. Shares of CUBE are up 38% year-to-date as of the end of normal trading hours on June 10, easily outpacing the 12% gain seen in the S&P 500 (SPY) during this period before taking dividend considerations into account. As of this writing, shares of
Dividend Increases/Decreases for the Week June 11
June 11, 2021
Below we provide a list of firms that raised their dividends during the week ending June 11. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week ACRES Commercial Realty (ACR): now $0.5391 per share quarterly dividend, was $0.2750. AFC Gamma (AFCG): now $0.38 per share quarterly dividend, was $0.36. ArcelorMittal (MT): now $0.30 per share annual dividend, was $0.20. Caterpillar (CAT): now $1.11 per share quarterly dividend, was $1.03. Chesapeake Utilities (CPK): now $0.48 per share quarterly dividend, was $0.44. China Yuchai (CYD): now $1.70 per share annual dividend, was $0.85. Community
