ICYMI: 5 Concerns About Impending Rate Hikes
January 12, 2016
The first Fed rate hike in nearly a decade came and went December 16, putting an environment of ZIRP (zero interest rate policy) to an end, a policy that grew out of the Financial Crisis and the depths of the Great Recession late last decade. The Fed had paused plans to hike the federal funds rate for much of 2015 as a result, in our view, of getting a more informed read on the potential implications of emerging market developments–namely dislocations in the local Chinese equity markets (FXI) and recessionary conditions in Brazil (EWZ)–and the stock market crash (SPY) in the US in August that sent equities of some of the most well-known stocks including Apple (AAPL) and General Electric
Bye Bye Energy MLPs
January 11, 2016
West Texas crude oil prices (USO) just broke through $32 per barrel to the downside for the first time since 2003. Share prices of those in the energy complex (XLE) continue to reel, and we maintain our view that the tremendous fallout in energy master limited partnerships (AMLP, AMZ) may not be over. From our perspective, the MLP business model may not survive in its present state, as equity markets continue to “wise up” to the artificial equity pricing paradigm that has centered on the group’s financially-engineered payouts. Without an artificial pricing paradigm to “prop up” their equity prices, for example, the incentive to perpetuate such a business model is substantially reduced. Distribution cuts would then inevitably ensue as a
Dividend Increases/Decreases for the Week Ending January 8
January 11, 2016
Below we provide a list of firms that raised/lowered their dividends during the week ending January 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 Alamo (ALG): now $0.09 per share quarterly dividend, was $0.08. Bank of the Ozarks (OZRK): now $0.15 per share quarterly dividend, was $0.145. DDR (DDR): now $0.19 per share quarterly dividend, was $0.1725. Enterprise Products Partners L.P. (EPD): now $0.39 per share quarterly dividend, was $0.385. Formula Systems (FORTY): now $0.34 per share semi-annual dividend, was $0.23. Genesis Energy (GEL): now $0.655 per share quarterly dividend,
Chipotle Fourth Quarter Comps Suffer Greatly; Could Qdoba Be the One to Eat Chipotle’s Lunch?
January 8, 2016
Chipotle’s (CMG) operating performance has come under tremendous pressure in recent months due to a number of reports linking illness in customers to its restaurants. At first, we thought the situation would be relatively contained to just a few dozen instances of sickened customers, but more concerns have come to light since we last commented on the topic. The media is having a field day. Can a company that prides itself on “Food with Integrity” endure, and why so many different causes of illness, from E. coli to salmonella to the norovirus? Could these events mark the beginning of the end of the burrito-making giant’s growth prospects, or is the bad press just a hiccup of indigestion, soon to be
The Markets Swoon Again
January 7, 2016
The broader US markets (SPY) swooned again January 7 as fears of a slowdown in China (FXI), or worse, a dislocation in Asia’s currency markets, and ongoing concerns about the sustainability of some of the most leveraged “players” in the energy complex took the spotlight again. None of this should be surprising. As we’ve done many a time before with the mortgage REITs, namely American Capital (AGNC) and Annaly (NLY), SeaDrill (SDRL) and the latest with Kinder Morgan (KMI), our members are far ahead of developments. That’s our job – we’re not reporters. We strive to get the right information to our members before it becomes “information,” and using the newsletter portfolios as an indication of our views on capital
Question Answered: The Process Is As Important As the Idea
January 6, 2016
We like to publish excellent questions and the answers to them at times for the benefit of all members. Let’s start with the answer first. A: This is a great question because it hits at the heart of our process. We not only look at the intrinsic valuation of equities, but we also evaluate the market’s conviction in the company’s undervaluation via pricing information, more commonly applied via technical and momentum work. So, in short, we like stocks that have both good value and good momentum indicators, hence our name Valuentum, and we’d only view the top tier of our ranking system 8-10 as ideas for consideration (generally), but only after the ones in the newsletter portfolios (the Best Ideas Newsletter
Seeking to De-risk the Newsletter Portfolios
January 5, 2016
There’s never a good reason to panic in investing, but the 276-point slide in the Dow Jones Industrial Average (DIA) January 4, the worst start to a year since the credit crisis in 2008, reminded us why we hold more than a 30% cash position in both newsletter portfolios at the moment: with a US stock market still near all-time highs, we like having ample capital available to scoop up bargains as stocks inevitably give back some of their gains. The question for us is not whether the broader US stock market will decline from here but whether such a decline will be 10%, 20% or more. After all, the S&P 500 (SPY) has essentially tripled from the March 2009
Dividend Increases/Decreases for the Week Ending January 1
January 4, 2016
Below we provide a list of firms that raised their dividends during the week ending January 1. 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 Guaranty Federal Bancshares (GFED): now $0.08 per share quarterly dividend, was $0.05. Firms Lowering Their Dividends This Week Gold Resource (GORO): now $0.0017 per share monthly dividend, was $0.01. Newtek Business (NEWT): now $0.40 per share quarterly dividend, was $0.50. >>Last week’s dividend increases.
Valuentum Presenting at the AAII Chapter in Phoenix
January 2, 2016
Please select the image below to download the slide deck…
Dividend Increases/Decreases for the Week Ending December 25
December 28, 2015
Below we provide a list of firms that raised their dividends during the week ending December 25. 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 8point3 Energy Partners (CAFD): now $0.217 per share quarterly dividend, was $0.2097. FelCor (FCH): now $0.06 per share quarterly dividend, was $0.04. Hanmi Financial (HAFC): now $0.14 per share quarterly dividend, was $0.11. Riverview Bancorp (RVSB): now $0.0175 per share quarterly dividend, was $0.015. Urstadt Biddle Properties (UBA): now $0.26 per share quarterly dividend, was $0.255. Urstadt Biddle Properties (UBP): now $0.23 per share quarterly dividend,
