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
Nelson: I’m Sorry
January 24, 2015
I sense that the individual investor is not healthy, or at least, in shock – a deer in headlights. The slide in crude oil prices has stopped many investors in their tracks. I can feel it. Something is not right. The individual investor is challenged and retrenching. Many of the best financial advisors and individual investors hold energy-related equities for one reason or another, and they have not been spared by crude oil’s decline. The Energy Select SPDR (XLE) has fallen to levels first reached in 2008 (since before the Financial Crisis), and the Alps Alerian MLP ETF (AMLP), which tracks relatively stable midstream MLPs, has fallen to levels first reached in the first quarter of 2013. For those that
Why We Include Union Pacific in the Best Ideas Portfolio
January 23, 2015
Valuentum’s Brian Nelson talks about Union Pacific’s (UNP) strengthening operating ratio and encouraging outlook for 2015. Railroads: ARII, CNI, CSX, GWR, KSU, NSC, UNP
3 Reasons Why We Like Kinder Morgan
January 23, 2015
Valuentum’s Brian Nelson discusses three reasons why Kinder Morgan (KMI) is included in the Dividend Growth portfolio. Pipelines – Oil & Gas: APL, BPL, BWP, DPM, ENB, EPD, ETP, EVEP, HEP, KMI, KMP, LNG, MMP, NS, PAA, SE, SEP, WES, WMB
Nelson: “eBay’s…Share Price Remains Significantly Undervalued”
January 22, 2015
Valuentum’s Brian Nelson explains why eBay’s (EBAY) 2014 was solid, and why 2015 will be a year in which management unlocks tremendous shareholder value. eBay remains a holding in the Best Ideas portfolio. January 21, 2015.
Nelson: “IBM…Is In a Lot of Trouble”
January 21, 2015
Valuentum’s Brian Nelson explains how an accounting focus on operating earnings per share instead of an economic focus on return on invested capital has completely disrupted IBM’s (IBM) business. January 20, 2015.
Video: Johnson & Johnson Still Strong Dividend Growth Idea
January 20, 2015
Valuentum’s President Brian Nelson talks about J&J’s (JNJ) solid dividend growth prospects and budding late stage pharma pipeline in the EU and US. January 20, 2015.
