Dividend Increases/Decreases for the Week August 28
August 28, 2020
Below we provide a list of firms that raised their dividends during the week ending August 28. 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 Athene Holding Pfd C (ATH.PC): now $0.4826 per share quarterly dividend. Eastgroup Properties (EGP): now $0.79 per share quarterly dividend, was $0.75. FFW Corporation (FFWC): now $0.25 per share quarterly dividend, was $0.23. First Midwest Bancorp DP SH C (FMBIO): now $0.4375 per share quarterly dividend, was $0.277. Fresnius Medical Care AG Common Stock (FMS): now $0.491 per share annual dividend, was $0.45. Highway Holdings (HIHO):
Hats Off to Powell and Mnuchin!
August 27, 2020
Hi everyone: — I hope you’re doing great today. It’s probably time we move past the long email chain format. During the COVID-19 crisis, I thought it would be a good idea to provide all of our latest correspondence in a stream, so you could conveniently monitor our every move (and always have previous correspondence handy). To some, it was confusing, to others absolutely necessary, but to us it was pivotal in gaining your trust. —- We’re going to move beyond the stream format with today’s email. However, in case you missed our prior correspondence, it can be accessed here. The archives of the Best Ideas Newsletter can be accessed here, and the archives of the Dividend Growth Newsletter can be accessed here. Our
Earnings Brief: NTAP, URBN, HPE, SJM, MDT
August 27, 2020
Image Source: Valuentum By Brian Nelson, CFA Pantry stuffing was prevalent during the second quarter, and mall-based retail is holding up better than some had expected. Cloud-based services companies continue to experience breakneck growth, and medical procedure volumes are picking up as we learn more and more about COVID-19. NetApp, Inc. NetApp (NTAP) is another one for your radar. According to the firm’s recent 10-K Filing, NetApp is a leader in hybrid cloud data services. The company helps its “customers ensure their data and applications are in the right place at the right time with the right characteristics and capabilities to enable new insights and accelerate innovation.” The cloud space continues to be in favor by investors. NetApp reported its
Dick’s Sporting Goods Finds E-Commerce Success
August 27, 2020
Image Shown: Shares of Dick’s Sporting Goods Inc rallied by ~16% during normal trading hours on August 26 after reporting stellar same-store sales growth. By Callum Turcan On August 26, Dick’s Sporting Goods Inc (DKS) reported second quarter fiscal 2020 earnings (period ended August 1, 2020) that beat consensus estimates on both the top- and bottom-lines. Driving this outperformance was Dick’s Sporting Goods’ 20.7% year-over-year increase in same-store sales as its e-commerce sales rose by 194%, which includes sales conducted through its curbside contactless pickup option. E-commerce sales represented ~30% of the sporting goods retailer’s total sales last fiscal quarter. Average ticket sizes and the number of transactions both grew last fiscal quarter according to management commentary included in the
Earnings Brief: BOX, CRM, WMT, TOL, HD/LOW
August 27, 2020
Image Source: Toll Brothers. Iron Oak at Alamo Creek, Danville, CA. By Brian Nelson, CFA Let’s cover some trends that may emerge out of the COVID-19 pandemic, including accelerated e-commerce proliferation and its impact on brick-and-mortar giants, as well as an increased likelihood of suburban sprawl that may propel some names while leaving others behind. Box, Inc. According to its website, Box (BOX) is “a leading Cloud Content Management platform that enables organizations to accelerate business processes, power workplace collaboration, and protect their most valuable information, all while working with a best-of-breed enterprise IT stack.” The company’s balance sheet isn’t as clean as we would like given its operating lease liabilities, but it does hold more than $270 million in cash
Papa John’s Posts Stellar Comparable Store Sales Growth
August 26, 2020
Image Shown: Shares of Papa John’s International Inc have surged upwards year-to date as of this writing. By Callum Turcan One company that has proven to be very resilient during the ongoing coronavirus (‘COVID-19’) pandemic is Papa John’s International Inc (PZZA). We significantly raised our fair value estimate for shares of PZZA back in June 2020 (link to the firm’s 16-page Stock Report here). As of this writing, Papa John’s is trading right at the top of our fair value estimate range which sits at $99 per share of PZZA. The company has an asset-light business model and a quality cash flow profile, a product of its focus on franchise operations, though Papa John’s does own some of its store
L Brands Beats Low Expectations
August 26, 2020
Image Shown: Though shares of L Brands Inc are up year-to-date, they remain down significantly over the past five years as of this writing (before taking dividend considerations into account). By Callum Turcan The owner of the Victoria’s Secret, PINK, and Bath & Body Works retail brands L Brands Inc (LB) reported second quarter fiscal 2020 earnings (period ended August 1, 2020) on August 19 that smashed past both consensus top- and bottom-line estimates. However, those estimates were a low bar to beat as analysts had already factored in the significant headwinds the coronavirus (‘COVID-19’) pandemic created for its business. Last fiscal quarter, L Brands reopened most of its stores and leaned on e-commerce sales channels to meet customer demand
Facebook Hits Another All-Time High!
August 25, 2020
Image: The Valuentum Buying Index is not a stair-step trading strategy, and we view only 9s and 10s and 1s and 2s as material considerations to consider buying or consider selling criteria. We have held prior 9s and 10s in the newsletter portfolios until they reach our fair value estimates, until their technicals roll over, until they register ratings of 1 or 2 on the VBI, or due to changes in certain criteria with respect to market conditions or overall portfolio constitution. Our best ideas remain in the newsletter portfolios and Exclusive publication. By Brian Nelson, CFA The Valuentum Buying Index (VBI) is NOT a monthly, quarterly, or report-update by report-update trading methodology (it can be if you want, but
Intel Plans to Repurchase a Lot of Its Stock
August 25, 2020
Image Shown: Intel Corporation is having trouble producing the next generation of chips (7-nm and smaller) as its current manufacturing process is having yield issues, which we covered previously. Image Source: Intel Corporation – Architecture Day 2020 Presentation By Callum Turcan On July 23, Intel Corporation (INTC) reported second quarter fiscal 2020 earnings (period ended June 27, 2020) that we covered in detail here. For members that have not yet read that note, we strongly encourage them to do so. Please note that delays in Intel’s 7-nm chip production schedule weighed negatively on its medium-term outlook, which sent shares of INTC meaningfully lower after its latest earnings report. Management recently responded by announcing a plan to aggressively buy back Intel’s
Nvidia Bets Big on Data Centers
August 24, 2020
Image Source: Nvidia Corporation – 2020 Annual Meeting of Stockholders Presentation By Callum Turcan On August 19, Nvidia Corporation (NVDA) reported second quarter fiscal 2021 earnings (period ended July 26, 2020) that beat consensus top-line estimates (on a GAAP basis) and consensus bottom-line estimates (on a non-GAAP basis, as its GAAP earnings were slightly lower than consensus estimates). Nvidia has several things going for it including a pristine balance sheet (meaning a net cash position), a data center business that is growing at a brisk pace (which we will cover in this note), a high quality cash flow profile (relatively low capital expenditure requirements to generate meaningful revenues), and its outlook is supported by secular growth tailwinds, particularly as it
