Apple Conference Better Than Expected
September 9, 2014
It is sometimes with hesitation that we talk about Apple (AAPL) because it is one of the most widely covered stocks. We often try to highlight hidden gems across our coverage universe, but when things are going well…well…things are going well. The iPhone maker has been one of the best performers in the Best Ideas portfolio and Dividend Growth portfolio, and the new products at the September 9 event speak to continued sustainability of strong fundamentals. View event replay here >> The biggest surprise at the event, in our view, was the release of both Apple’s first wearable device (called Apple Watch) and its first payments solution (called Pay). “The Apple Watch is available in two different sizes and comes
Is Predicting Stock Prices Easy? 100% of Economists Say “No Way!”
September 8, 2014
By Brian Nelson, CFA “Don’t get frustrated if one or two of your ideas don’t work out. This is to be expected in a portfolio of stocks. You’re investing to achieve your goals. It is only human and natural to be wrong sometimes.” The University of Chicago’s Initiative on Global Markets frequently puts out a survey from a variety of different standpoints on relevant issues of the day. Though the write-up from the World Economic Forum goes into countering “the general perception that economists rarely agree on anything,” we were quite interested in one particular dynamic: 100% of economists think predicting stock prices is difficult, while 45% of the public thinks predicting stock prices is not difficult (presumably easy). The
Dividend Increases for the Week Ending September 5
September 5, 2014
Below we provide a list of firms that raised their dividends during the week ending September 5. 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 Altisource Residential (RESI): now $0.55 per share quarterly dividend, was $0.45. Atrion (ATRI): now $0.75 per share quarterly dividend, was $0.64. Avago Tech (AVGO): now $0.32 per share quarterly dividend, was $0.29. Eastgroup Properties (EGP): now $0.57 per share quarterly dividend, was $0.54. Silver Bay Realty Trust (SBY): now $0.04 per share quarterly dividend, was $0.03. Verizon (VZ): now $0.55 per share quarterly dividend, was $0.53. >>Last week’s
Apple Hacked! Not Alone.
September 3, 2014
By Brian Nelson, CFA It’s difficult to be a business these days. Not only do you have to provide a service that customers are willing to pay for, but your customers have to have the means to pay for it. But more and more, we are seeing that businesses have more obstacles to overcome, and I’m not just talking about increased regulations. I’m talking about hackers, and their work is becoming more and more prevalent. Target (TGT) continues to be distracted from its credit data breach, while eBay (EBAY) recently reported a cyber attack, though of the less-serious variety. This week, reports indicate that Home Depot (HD) has been the target of a massive credit card data breach. Though admitting
Performance Update: The Valuentum Buying Index
September 3, 2014
Note: A more recent analysis of the Valuentum Buying Index rating system can be accessed at the following link: /Value_and_Momentum_Within_Stocks_Too A version of this article was published October 26, 2013. By Brian Nelson, CFA We periodically update the performance results of the Valuentum Buying Index (VBI), the stock-selection methodology that drives idea-generation within the Best Ideas portfolio. The academic studies of the Valuentum Buying Index can be accessed here (white paper) and here (AAII). The latest iteration of the performance, dated September 3, 2014, continues to showcase the strong sorting mechanism embedded within the investing framework, particularly when the index is coupled with qualitative oversight and portfolio management skill. Sorting winners from losers is what the Valuentum Buying Index has been designed to
Valuentum’s September Edition of the Dividend Growth Newsletter!
September 3, 2014
Please download the September edition of the Dividend Growth Newsletter .
The Dividend Dilemma
September 2, 2014
One of the core tenets of the Valuentum process not only rests in the all-important price vs. value consideration (see Valuentum’s Brian Nelson talk about that here), but also in “letting winners run.” At first read, these two items appear to be at odds with each other. For example, we preach about getting stocks at a bargain, but yet, we don’t sell holdings when they start to move beyond our estimate of their fair value. What gives? At the Valuentum core, we prefer an entry point that corresponds to the time when shares have substantial valuation and pricing support (i.e. they have high Valuentum Buying Index ratings), and we prefer an exit point when shares have little valuation and pricing
September Edition of the Dividend Growth Newsletter To Be Released Tomorrow
September 2, 2014
Dear Member: Due to Monday being Labor Day, a holiday for US markets, the Dividend Growth Newsletter, typically released on the 1st of each month, will be released tomorrow evening, September 2. The September edition of the Best Ideas Newsletter is still scheduled for release the evening of Monday, September 15, and the October edition of the Dividend Growth Newsletter will be published as originally scheduled on the evening of Wednesday, October 1. Valuentum’s Brian Nelson wanted to make sure that you saw the recent videos posted to the website, both as it relates to the core concept of price vs. value here and his recent interview on CNBC regarding the luxury space here. In case you missed it, Gilead
This Firm Just Registered a 10 on the Valuentum Buying Index
September 1, 2014
Please expect a full write-up and a transaction alert email with additional details soon. The company is being considered for inclusion into the Best Ideas portfolio. “Senate Finance Committee Chairman Ron Wyden and senior Finance Committee member Chuck Grassley made public their request for detailed pricing information on Gilead’s (GILD) Sovaldi, a Hepatitis C virus drug. Wyden and Grassley have asked Gilead Sciences for information about Sovaldi, a drug developed to treat and cure HCV, they disclosed, stating, “Given the impact Sovaldi’s cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug.” — source Please select the image below to download the firm’s 16-page
Dividend Increases/Decreases for the Week Ending August 29
September 1, 2014
Below we provide a list of firms that raised/lowered their dividends during the week ending August 29. 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 Escalade (ESCA): now $0.10 per share quarterly dividend, was $0.09. First Connecticut Bancorp (FBNK): now $0.05 per share quarterly dividend, was $0.04. MB Financial (MBFI): now $0.14 per share quarterly dividend, was $0.12. Old Line Bancshares (OLBK): now $0.05 per share quarterly dividend, was $0.04 Raven Industries (RAVN): now $0.13 per share quarterly dividend, was $0.12. Scotiabank (BNS): now C$0.66 per share quarterly dividend, was C$0.64. Triangle
