Apache Comes Up Empty in Suriname, Shares Plummet
December 2, 2019
Image Source: Apache Corporation – November 2019 IR Presentation By Callum Turcan On December 2, Apache Corporation (APA) announced that its first exploration well off the coast of Suriname (a small nation in northern South America) was a dud. The Maka Central-1 well was drilled to a total depth of 6,200 meters (~20,300 feet) in Block 58 and drilling activities commenced in late-September. While the well was testing two Upper Cretaceous plays, neither play appeared to have commercial level of hydrocarbons (more information will be provided by management on this issue in the near future) so Apache opted to drill down to a total depth of 6,900 meters (~22,600 feet) to test a third Cretaceous play. This news sent shares
Portfolio Newsletter Holding Digital Realty Targets Secular Growth Trends to Support Dividend Growth Trajectory
November 29, 2019
Image Shown: Digital Realty Trust is one of our favorite ways to indirectly play several secular growth trends at once. The data center real estate investment trust (‘REIT’) pays out a nice dividend that’s supported by its investment grade credit ratings, a solid cash flow profile, and a promising growth trajectory. By Callum Turcan Happy Holidays! Callum here. I hope you are all enjoying some quality time off with your loved ones. This year, my family is happy to announce that we will be celebrating this Thanksgiving with my sister’s newborn daughter, her first major holiday. These are exciting times, and as always, feel free to check out our Best Ideas Newsletter portfolio (link here) and Dividend Growth Newsletter (link
Dividend Increases/Decreases for the Week Ending November 29
November 29, 2019
Below we provide a list of firms that raised their dividends during the week ending November 29. 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 Becton, Dickinson (BDX): now $0.79 per share quarterly dividend, was $0.77. Deswell Industries (DSWL): now $0.08 per share semi-annual dividend, was $0.07. Dynacor Gold Mines (DNGDF): now CAD 0.015 per share quarterly dividend, was CAD 0.01. Exchange Bank (EXSR): now $1.15 per share quarterly dividend, was $1.10. Gaming and Leisure Properties (GLPI): now $0.70 per share quarterly dividend, was $0.68. Golub Capital BDC (GBDC): now $0.33
Holiday Scheduling
November 27, 2019
Image Source: Tim Sackton Hi everybody, It’s that time of year again, when family and friends come to visit, and everyone eats too much on Thanksgiving. I wanted to send this note to wish you a wonderful holiday and to let you know how much we appreciate your membership to our service. I’m so thankful for your interest, questions, and support, and I wanted to remind you of an important survey we’ll be releasing soon. We’re very excited about this important new initiative, and we need your feedback. Our team will be out of the office until Monday, December 2, so you should expect the December editions of the Dividend Growth Newsletter and High Yield Dividend Newsletter at that time. As
Order the Exclusive: Get Unbiased Research on IPOs and More!
November 27, 2019
Image Source: The October edition of the Exclusive publication. Valuentum offers unbiased commentary on IPOs in its Exclusive publication (e.g. Peloton, Cloudflare). In the Exclusive publication, Valuentum highlights three new ideas each month to consider, one for income, one for capital appreciation, and a “short” idea (all three outside our existing coverage universe). Fresh, underfollowed and new ideas — outside our coverage universe — every month! Nothing is held back. We provide insights where others cannot, and the IPO market is just one area. In the October 2019 edition, for example, our team wrote up Peloton (PTON) and Cloudflare (NET) as a short idea consideration and a capital appreciation idea, respectively. Big Winners Backed by In-Depth Theses Since the monthly
Our Reports on Stocks in the Industrial Electrical Equipment Industry
November 26, 2019
Image Source: Eaton Structure of the Industrial Electrical Equipment Industry Demand for products in the industrial electrical equipment space is highly cyclical, and industry constituents are exposed to volatile raw-material costs, which at times can be difficult to pass along to customers. Product development and quality initiatives are sources of competitive strengths, but rivals often compete aggressively on price to gain share. The industrial electrical equipment market should grow at a GDP-like pace in the developed world and a multiple of that trajectory in emerging markets. We’re neutral on the space. We’ve optimized our industrials coverage. To view the reports, please click here.
Our Reports on Stocks in the Chemicals – Mid/Small Industry
November 25, 2019
Image Source: Rusty Clark Structure of the Chemicals Industry The chemicals (mid/small) industry includes firms that make thousands of different chemical substances, ranging from basic raw materials to advanced specialty chemicals. Making chemicals is a cyclical and energy-intensive business, with volatile oil/gas prices influencing feedstock, operation, and transportation costs. Specialty providers can carve out niches, but commodity chemicals producers are largely undifferentiated, making it impossible to gain a sustainable competitive edge. The industry is very capital intensive, and large swings in prices and volume should be expected. We don’t like the industry structure. We’ve dropped coverage of stocks in this industry. We cover the Chemicals – Broad industry. Click here.
Dividend Growth Newsletter Portfolio Holding Microsoft Secures a Big Win
November 22, 2019
Image Shown: Shares of Microsoft Corporation continue to make new highs and we think MSFT may test the upper end of our fair value range given the company’s improving growth outlook. By Callum Turcan Shares of Dividend Growth Newsletter portfolio holding Microsoft Corporation (MSFT) continue to climb higher. We think shares could test the upper end of our fair value estimate range, which currently sits at $166 per share, comfortably above where Microsoft’s stock is trading at as of this writing (~$149 per share). Recent events have augmented the company’s free cash flow potential, with an eye towards the Joint Enterprise Defense Infrastructure (‘JEDI’) contract win. Shares of MSFT yield ~1.4% as of this writing. Microsoft Wins The US Department
Our Reports on Stocks in the Household Durables Industry
November 22, 2019
Structure of the Household Durables Industry The household durables industry is heavily tied to the health of consumer disposable income, new home sales, and housing renovation (replacement demand). The group faces stiff international competition, where labor costs may be cheaper, and pressure from discount retailers that continue to improve the quality of their product offerings. The premium mattress segment continues to enjoy a nice demographic tailwind, as it caters to a growing number of aging, more health-conscious customers willing to pay up for a good night’s rest. Still, all constituents deal with volatile input costs. We’re neutral on the group. We’ve optimized our discretionary spending coverage. Reports can be found here.
PayPal Buys Honey and We Like the Fit
November 22, 2019
Image Source: PayPal Holdings Inc – Press release covering its acquisition of Honey By Callum Turcan A holding in our Best Ideas Newsletter portfolio, PayPal Holdings Inc (PYPL) announced on November 20 it was acquiring the shopping and rewards start-up Honey for ~$4 billion. Honey is a high-growth technology platform (delivered through a browser add-on and mobile application) that helps consumers find deals and save when they shop online. That includes finding price discounts, promotions and events, sending alerts, creating lists, and offering a rewards system known as Honey Gold to its ~17 million monthly active users. We think this deal is highly complementary to PayPal’s operations, and we continue to give shares of PYPL a fair value estimate of
