Investors in Procter & Gamble Have No Need To Panic
January 28, 2015
Valuentum’s President Brian Nelson explains why currency fluctuations should not influence the investment-decision making process too much, particularly for strong entities such as Procter & Gamble. Nelson continues to like the firm’s dividend growth prospects. If you cannot see the video, please click here.
Yahoo’s Uncertainty Is Far Too Great
January 28, 2015
Valuentum’s President Brian Nelson talks about how Yahoo’s spin-off of Alibaba’s shares adds even more uncertainty to the investment equation. The investment prospects of Yahoo are muted. If you are unable to see the video, please click here.
Apple’s Powerful “Valuentum-style” Attributes Remain
January 27, 2015
We were expecting “an absolute blow-out holiday quarter for Apple,” and the company did not disappoint. Revenue growth of ~30% and earnings per share of $3.06 (up ~50%) blew by analyst expectations and set new records in its fiscal first quarter, as the tech giant sold an all-time quarterly best 74.5 million iPhones, simply a monumental number. Was there really any doubt that Apple (AAPL) was going to beat expectations? The iPhone maker’s “Valuentum-style” attributes also remain intact. We talk quite a bit about the importance of combining both valuation and technical/momentum qualities in individual equity analysis, and perhaps the best example of any idea we’ve added to the newsletter portfolios showcasing the efficacy of such a process is Apple.
There’s More Rough Sledding Ahead; Removing Half of Microsoft from DG Portfolio
January 27, 2015
Reverberations of the collapse in commodity prices have influenced much more than the commodity producers themselves. The slide has impacted business in a variety of sectors, almost across the board, as suppliers and customers seemed to pause to assess the damage and opportunities. The strengthening dollar is also having an unprecedented impact on the growth of global entities. If the disappointments yesterday (see here) didn’t signal an inflection point in the markets, then today surely has. It was just yesterday that we reiterated our view that Peabody Energy’s (BTU) dividend was at risk, and almost on cue, the firm announced today that it would slash its payout more than 97%, to $0.085 per share on a quarterly basis. The Dividend
Microsoft’s Revenue Growth Sours, Dividend Growth Thesis Intact
January 27, 2015
Valuentum’s President Brian Nelson addresses Microsoft’s excellent cash-flow position, but acknowledges top-line headwinds. The firm’s dividend growth prospects remain firmly intact. If you are unable to see the video, please click here.
Cliffs Natural’s Blunder; The Dividend Cushion Not Fooled
January 27, 2015
Valuentum’s President Brian Nelson talks about how income investors can protect themselves against overly optimistic management teams. The Dividend Cushion is an objective, forward-looking measure of a firm’s ability to pay its dividends. If you are unable to see the video, please click here.
One Dividend Suspension and Five Other Disappointments
January 26, 2015
The wreckage in crude oil prices has left many in awe of the range of probable outcomes for the commodity even over a multi-month period, let alone a multi-year period. The precipitous decline has forced high-yielding equities such as Linn Energy (LINE) and Seadrill (SDRL) to slash their income payouts and begin the long road to recovery, as it has pushed the backs of others, including Legacy Reserves (LGCY), against the wall. Investor confidence, once lost, however may never be regained, and management teams know this. A dividend cut will always be the last resort, but crude oil hasn’t been the only commodity falling out of favor. Copper and iron ore have also seen much better days, too. January 26
A Glimpse Into Valuentum’s DCF Process
January 26, 2015
Take a look inside Valuentum’s in-depth discounted cash-flow process that it uses to derive the fair value estimates and fair value ranges of every operating company in its coverage universe. Valuentum’s President Brian Nelson takes us through the walk-through. This is an excerpt of Part II of Valuentum’s four part investment education workshop. Please contact us at info@valuentum.com to receive the DCF models of companies in our coverage universe. If you are unable to view the video, please see here. Firms mentioned: Boeing (BA)
Dividend Increases for the Week Ending January 23
January 26, 2015
Below we provide a list of firms that raised their dividends during the week ending January 23. 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 AGCO (AGCO): now $0.12 per share quarterly dividend, was $0.11. Alaska Air (ALK): now $0.20 per share quarterly dividend, was $0.125. Alexanders (ALX): now $3.50 per share quarterly dividend, was $3.25. Allete (ALE): now $0.505 per share quarterly dividend, was $0.49. Bar Harbor Bankshares (BHB): now $0.245 per share quarterly dividend, was $0.235. Cardinal Financial (CFNL): now $0.11 per share quarterly dividend, was $0.10. Collectors Universe
The Time to Own McDonald’s Has Passed
January 25, 2015
McDonald’s (MCD) CEO Don Thompson’s admission that 2014 was a challenging year is an understatement. The restaurant has been mired in food scandals throughout much of the year, and consumer confidence in the fast food giant has been shaken to the core. McDonald’s sourcing relationship with Shanghai Husi Food, the firm responsible for the mishandling of meat in its China operations, coupled with recent reports of vinyl being found in Chicken McNuggets sold in Japan has given the Dow component a black eye. I talked about McDonald’s on CNBC following its third-quarter report last October, and frankly, the outlook is not much different after its fourth-quarter release. The time to own McDonald’s has passed. It is easy to characterize the
