Podcast: Microsoft — Still One of Our Favorites
November 10, 2016
The Valuentum analyst team talks about the financial strength of Microsoft, its deal with LinkedIn, the possibility of a winner’s curse, its growing cloud business, and a setback with the Surface. ~6 mins. If you cannot view the video, please view the transcript below or select the link here. Tickerized for Microsoft and Salesforce. Brian Nelson, CFA This is Brian Nelson for Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos. Today, we would like to talk about Microsoft (MSFT). We’ve been very very skeptical of its deal with LinkedIn (LNKD) as of late and I think to help us walk through some of our concerns but also the possible benefits of a tie-up with
VBI Case Study — Priceline’s 3Q Earnings Insight
November 9, 2016
Let’s take a look at Best Idea Newsletter holding Priceline’s (PCLN) third quarter 2016 report, released November 7. Image Source: Priceline What management said: “The Priceline Group brands executed well during our peak summer travel season,” said Jeffery H. Boyd, Chairman and Interim Chief Executive Officer of The Priceline Group. “Globally, our accommodation business booked 150 million room nights in the 3rd quarter, up 29% over the same period last year. The acceleration in room night growth demonstrates the favorable market in which we operate as well as the value of our diverse global platform.” Shares are breaking out… The scoop: Priceline executed fantastically in its peak summer travel season, turning in 25% gross travel bookings growth in the third quarter of
Podcast: REITs, Interest Rates and Beyond!
November 8, 2016
The Valuentum analyst team talks REITs and the reasons why REIT investors should pay close attention to changes in Treasury rates. Various secular themes across the data center, healthcare, office, and mall REITs are discussed, and an explanation for the sector’s systematically poor raw, unadjusted Dividend Cushion ratios is covered. ~8 mins. Tickerized for various ETFs and the holdings in the VNQ. Brian Nelson, CFA: In September, REITs were officially broken out from the financial sector to their own sector of the S&P 500 — some 30 or so stocks with $600 billion in market capitalization, or about 3% of the S&P 500. Could this change have marked a peak in performance for equity and mortgage REIT stocks? Are investors
Taking a Bite Out of Apple
November 7, 2016
Summary: Apple’s revenue and earnings per share were largely in-line with expectations in the fourth quarter of fiscal 2016. Revenue guidance may have come in a little light relative to consensus expectations, and expansion in China appears more challenging than originally thought. A recent product safety issue at Samsung has opened the door for Apple to convert potentially millions of smartphone users to loyal Apple customers. We’re still huge fans of Apple, its products, free cash flow generation, and pristine balance sheet — not to mention its dividend growth prospects (bottom of article)! By The Valuentum Team Oh, another article on Apple, you may say. Well, here’s why this one is different. We’ll cover some recent developments, of course, but
Earnings Insight – Facebook
November 6, 2016
Image Source: benstein Let’s dig into Best Ideas Newsletter holding Facebook’s (FB) third-quarter results, released November 2. By Kris Rosemann What management said: “We had another good quarter,” said Mark Zuckerberg, Facebook founder and CEO. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.” The scoop: Though shares of Facebook sold off on worries about slowing revenue growth after its third-quarter report, released November 2, the social media giant continues to grow at a tremendous rate. On a year-over-year basis, advertising revenue jumped 59% in its third quarter thanks to mobile advertising revenue growth of 78%. Mobile advertising revenue now accounts for roughly 84% of total advertising revenue. Declining total payments and fees revenue is
Trouble Developing for Generic Pharma Stocks?
November 4, 2016
Image Source: DonkeyHotey Shares of generic pharmaceutical stocks have been punished after news surfaced that the US Justice Department could file charges by year-end following a two year antitrust investigation. By Kris Rosemann Though difficult to say in light of the poor stock performance of generic pharmaceutical makers of late, we continue to be positive on the long-term secular theme of ongoing growth in the availability of low-priced drugs around the globe, a trend that plays favorably into their hands. Yet another regulatory-related blow, however, was dealt to the pharma space November 3, and surprisingly to those exact firms that work tirelessly to reduce the price of more expensive branded drugs, generic pharma. Reports surfaced that the US Justice Department
Valuentum’s Nelson on Yum China Split
November 2, 2016
Image Source: CNBC Asia President of Investment Research at Valuentum Brian Nelson talks Yum China (YUMC) on CNBC Asia. ~2 minutes.
Top-Rated OHI: Not Adding It But Why?
November 2, 2016
Image Source: Omega “In my opinion, a golf club is only as good as the player that uses it, and in a similar light, a financial model or a rating system is only as good as the user that applies it.” — Brian Nelson, CFA Summary We stake so much on the performance of the portfolios in the Best Ideas Newsletter and Dividend Growth Newsletter. They represent the outcome of all of the work we do on the website, rolled into one final assessment: our best ideas for each respective strategy. We value the human, qualitative overlay, which captures a wealth of experience and common sense. The thoughts behind the weighting of each idea and the portfolio management process
Earnings Insight – Gilead Sciences
November 2, 2016
Image Source: Gilead Let’s cover some ground on Gilead Sciences (GILD) third-quarter report. What management said: “I’d like to reiterate the positive progress Gilead is making in addressing viral diseases. We will soon have treated 1.2 million HCV-infected individuals around the world, most of whom are now cured. By any measure, this is a profound contribution to global health care delivery. And in the field of HIV, not only are we effectively managing the disease with our new TAF-based regimens, but Truvada is helping more and more people avoid infection. I am confident that we will close out the year with continued strong financial performance underpinned by a passion for operational excellence and our focus on putting the patient
Dividend Aristocrat No More: HCP Cuts Its Payout
November 1, 2016
Image Source: HCP Former Dividend Growth Newsletter portfolio holding HCP recently was forced to cut its dividend as a result of the spin-off of its beleaguered HCR ManorCare portfolio. We told you it would. That’s exactly why we removed it from the Dividend Growth Newsletter portfolio in February 2016. By Kris Rosemann As the only REIT in the S&P 500 Dividend Aristocrat Index and a former Dividend Growth Newsletter portfolio holding, healthcare REIT HCP (HCP) once boasted one of the most impressive dividend track records available on the market, where 2016 had marked its 31st consecutive year of dividend increases. We’ve worked tirelessly to explain to members that it is only the future that matters when it comes to investing,
