Updated Thoughts on Brighthouse Financial and Quad/Graphics
March 12, 2019
Brighthouse Financial is trading at material discount to its book value per share as the market questions its strategy to enhance its return on equity in coming years, and we’re not high on its risk/reward potential as a notable portion of its bottom-line performance is beyond the control of management. Quad/Graphics sports a lofty dividend yield, but we’re less than enthused about its long-term prospects as it looks to consolidation in a declining industry for growth. By Kris Rosemann We’re Not Interested In Brighthouse Despite It Trading at a Discount to Book Image Source: Brighthouse Financial Investor Presentation Hedge fund manager David Einhorn is a big fan of Brighthouse Financial (BHF) thanks in part to its hedging with an options-based
FB/FIZZ Methodologically Speaking and CMG, AAPL, BA!
March 12, 2019
By Brian Nelson, CFA Hi everyone, Hope you are doing great. There a few things I wanted to put on your radar this evening. We’re going to talk the importance of having CFA charterholder research at your advisory practice. We’ll discuss Facebook (FB) and National Beverage (FIZZ) in the context of our methodology, and we’re going to touch on a couple things at Chipotle (CMG), Apple (AAPL) and Boeing (BA). Did you hear about the 737 MAX 8? Not good. I also wanted to remind you of the new 40/40 Goal (click here), of which we are already making progress (the book reviews keep coming in). Thank you! First, just a quick reminder on the 40/40 Goal. We now have 15 reviews
The 40/40 Goal, 3 Videos and the Book Tour Begins!
March 8, 2019
I want to share the 40/40 goal which I need your help to achieve. Also, there are three videos in this email I want you to watch over the weekend, and I’m excited that the book tour will begin April 13 in Chicago! Order Brian Nelson’s new book, Value Trap: Theory of Universal Valuation here. By Brian Nelson The 40/40 Goal What is this said 40/40 Goal that I just dropped upon Valuentum members?Well, it is two things, and it is entirely up to our membership to achieve. The first part of the 40/40 goal is to generate 40 reviews on Amazon for our new book Value Trap: Theory of Universal Valuation. At the moment, we have 10 (which is awesome), so
Dividend Increases/Decreases for the Week Ending March 8
March 8, 2019
Below we provide a list of firms that raised their dividends during the week ending March 8. 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 Aecon (AEGXF): now CAD 0.145 per share quarterly dividend, was CAD 0.125. Americold Realty Trust (COLD): now $0.20 per share quarterly dividend, was $0.1875. American Tower (AMT): now $0.90 per share quarterly dividend, was $0.84. Applied Materials (AMAT): now $0.21 per share quarterly dividend, was $0.20. Armanino Foods of Distinction (AMNF): now $0.025 per share quarterly dividend, was $0.0225. BWX Technologies (BWXT): now $0.17 per share
Valuentum’s Stock and Data Screens and Screeners
March 7, 2019
Let’s go over where to find Valuentum’s stock and data screens and screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, and our data comes straight from our enterprise discounted cash flow models that we use to derive a company’s fair value estimate. By The Valuentum Team In late 2017, we made the decision to transition to providing an updated Excel download each week to members in order to allow them to facilitate any combination of screening criteria they want with respect to our vast amounts of data, whether it be the Valuentum Buying Index, the Dividend Cushion ratio or other. What we’ve found out the past 15 months or so
Dividend Growth Portfolio Alert: Adding KMI, Removing HAS!
March 6, 2019
Note: The Exclusive publication will be released next Saturday, March 9th. Add the Exclusive to your membership here. We see as much as 20%+ upside in Kinder Morgan’s shares, and separately, we think its dividend is poised for growth in the coming years. We’re swapping out a huge winner in Hasbro to make room. How exciting! Changes to Dividend Growth Newsletter portfolio Remove Hasbro (HAS) -2.5%-3.5% weighting Add Kinder Morgan (KMI) +2.5%-3.5% weighting Be on the lookout for a very important survey in the coming months. We need your responses. By Brian Nelson, CFA This will be a short note. First, General Electric’s (GE) shares continue to face pressure. You can read about our experience in calling the collapse in GE’s shares
Tandem Diabetes Care: An Emerging Leader in Diabetes Technology
March 6, 2019
Image Source: Tandem Investor Presentation Over the past year or so, Tandem Diabetes Care has gone from jockeying for position in the domestic insulin pump market to a global leader in diabetes care technology. Significant growth catalysts remain in place, and the company expects to soon begin realizing meaningful efficiencies of scale as robust top-line growth continues. By Kris Rosemann Overview Tandem Diabetes Care (TNDM) is an innovative medical device company specializing in products for people with insulin-dependent diabetes. It incorporates modern and innovative technology into its offerings, and its competitive advantage is based on its unique consumer-focused approach. The company has commercially launched six insulin pumps, all of which are based in its proprietary technology platform, in the US,
Our Reports on Stocks in the Retail–Apparel (Women’s, Men’s, Children’s) Industry
March 5, 2019
Structure of the Retail–Apparel Industry The retail clothing space is incredibly competitive, very fragmented, and heavily exposed to cyclical pressures and consumer spending patterns. Distribution and storefronts remain crucial, but online threats are becoming ever more apparent. Predicting the correct fashion styles during various seasons of the year continues to be the primary driver impacting the operating results of constituents, and brands can fall out of favor with consumers relatively quickly. Though some firms have developed a dedicated customer following that has helped mitigate abrupt market share shifts, we’re generally neutral on the industry. We no longer provide reports on stocks in the Retail–Apparel (Women’s, Men’s, Children’s) industry. We cover more apparel companies. Click here.
Target and Kohl’s Report Comps Growth; GNC’s Struggles Continue
March 5, 2019
Image Source: Kevin Dooley Target turned in strong comparable sales growth in its 2018 holiday quarter, thanks in part to solid digital sales growth, and department store operator Kohl’s was able to deliver positive comparable sales growth in the final quarter of its fiscal 2018, which led to an impressive two-year stack. Health and wellness retailer GNC continues to struggle. By Kris Rosemann Target’s (TGT) Comps Impress Image shown: The red dot denotes where shares of the company are trading. If it falls on the green part of the fair value estimate distribution, we think shares are undervalued. If it falls on the yellow part of the fair value estimate distribution, we think shares are fairly valued, and if it
Praise for Value Trap: Theory of Universal Valuation — Author Brian Nelson
March 4, 2019
On behalf of the entire Valuentum team, thank you! Order Brian Nelson’s new book, Value Trap: Theory of Universal Valuation here . From Academia and Money Managers “Value Trap is terrific! It is full of immense wisdom and great stories. I loved it and I am confident that you will, too.” Gary N. Smith, Ph.D. Fletcher Jones Professor of Economics, Pomona College Author of Standard Deviations, The AI Delusion, Money Machine, and What the Luck? “Over 30 years as an investment advisor, I have been asked so many times to suggest “a book that teaches me how to do all this (investing) stuff?” My response has always been along the lines of, “Don’t you
