Expect Abbott to Raise Its 2014 Outlook Soon
April 17, 2014
We’ve always liked Abbott (ABT). The company has been one of the most successful companies for more than 125 years. The firm has leadership positions in a number of attractive markets such as ‘Diagnostics’ – where it is #1 in immunoassay diagnostics and #1 in blood screening – and ‘Nutrition’ – where it boasts brand names such as Similac, Ensure, and PediaSure, leading to its #1 worldwide position in both worldwide adult nutrition and US pediatric nutrition. The firm’s ‘Branded Generics’ segment has strong positions in emerging markets, while its ‘Medical Devices’ segment is #1 in drug-eluting stents, #1 in bare metal stents, and #1 in LASIK. Abbott continues to execute nicely. On Wednesday, Abbott reported solid first-quarter results. On
Another New High for GE’s Industrial Backlog!
April 17, 2014
General Electric (GE) has taken a number of steps to position itself for future success, and reduced reliance on GE Capital Corp (GECC) remains a sound trajectory. Not only do we think that increased transparency and potential monetization of a portion of its far-reaching financial operations is a prudent idea (particularly given the recent lessons learned from the Financial Crisis), but the move also frees up the executive suite to focus on driving top-notch performance at its industrial operations. Clearly, we’re already seeing the potential of this “new GE,” and we like it very much. Image Source: GE On Thursday, GE reported excellent first-quarter results. One of the most important indicators of GE’s industrial business potential is the trend in
Intel Continues Its Move to $30 Per Share
April 17, 2014
Frankly, it’s hard not to like Intel (INTC). The company dominates the microprocessor and chipset market, and while rivals can adapt quickly in the land of technology, continuous research and development keeps the firm a step ahead of the competition. If that weren’t enough, the company is simply a cash-flow machine, and its annual dividend payout is not only safe on the basis of the Valuentum Dividend Cushion score but also is poised to grow into the future. A strong competitive position, an attractive valuation, and a safe and growing dividend are a few qualities that make the company a Valuentum stock. It is held in both the Best Ideas portfolio and Dividend Growth portfolio. Intel’s goal is to be
Valuentum’s April Edition of Its Best Ideas Newsletter!
April 16, 2014
Oh…The Weather In Chicago, by Brian Nelson, CFA A lot of members have emailed me over the past several months. I very much appreciate the conversation and the sincerity of our member base. I think Valuentum members are genuinely the nicest out there. They understand what we’re trying to do and really appreciate the efforts of the team. It is both an honor and a pleasure to work with every one of you! Please don’t ever forget that. You’re class is one of a kind. A few of our new members asked a little about me personally, but for those that don’t know me, I live in the Chicagoland area with my beautiful wife and baby boy… To continue reading, please
Johnson & Johnson’s Patent Expiration Profile Is Fantastic
April 15, 2014
Very few firms have a more attractive investment profile than Johnson & Johnson (JNJ). On Tuesday, the consumer products and healthcare company showed us why when it reported better-than-expected first-quarter performance on both the top and bottom lines. The company continues to drive outperformance in the Dividend Growth portfolio as it approaches $100 per share. Operating sales during the period jumped 5.3% compared to the same quarter a year ago, consisting of 2.2% domestic expansion and 7.9% international growth. Excluding one-time items, net earnings for the quarter came in at $4.4 billion and diluted earnings per share came in at $1.54, representing advances of 7.8% and 6.9%, respectively, compared to last year’s quarter. Management credited successful new product launches and continued growth
Surveying First-Quarter Bank Performance
April 14, 2014
Wells Fargo dips back into subprime lending, JP Morgan reveals weakness across the board, and Citigroup holds the line.
Flash Boys: A Wall Street Revolt – Michael Lewis
April 14, 2014
Let’s take a look at the book that moved the markets.
Dividend Increases/Decreases for the Week Ending April 11
April 13, 2014
Below we provide a list of firms that raised/lowered their dividends during the week ending April 11. 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 AptarGroup (ATR): now $0.28 per share quarterly dividend, was $0.25. BNY Mellon (BK): now $0.17 per share quarterly dividend, was $0.15. Chatham Lodging Trust (CLDT): now $0.08 per share monthly dividend, was $0.07. Genesis Energy (GEL): now $0.55 per share quarterly distribution, was $0.535. Hospitality Properties Trust (HPT): now $0.49 per share quarterly dividend, was $0.48 IDEX (IEX): now $0.28 per share quarterly dividend, was $0.23.
Use a Margin of Safety in This High-Risk Market Environment
April 11, 2014
“One major criticism that we always hear about value investing is “what’s your risk management, how do you know when you’re wrong”? Well, a great value investor gives himself a margin of safety, in other words you don’t have to know how much a fat person weighs to realize they’re overweight. Like John Keynes said “It is better to be roughly right than precisely wrong.” If you come to a conclusion that a $100 stock is trading at $65, even if you’re overestimating the stock’s value by 25%, at $81.25 there is still plenty of room for the stock to appreciate to $100.” — The Irrelevant Investor The markets faced some tough sledding this week, with the S&P 500 (SPY),
Three Charts That Make You Go Hmmm…
April 11, 2014
We came across three fascinating charts from infamous tech-bubble analyst Henry Blodget that we wanted to make you aware of. Source: Don’t Be Surprised If This Is The Start of A Stock Market Crash… 1) The cyclically-adjusted price-to-earnings ratio of the S&P 500 (SPY) is higher than at any point in the 20th century with the exception of the peaks of 1929 (right before the market crashed) and 2000 (right before the market crashed). Image Source: Robert Shiller, Business Insider, Henry Blodget 2) Today’s profit margins are the highest in history, and investors are assigning peak-margin valuations to equities to justify prices instead of applying mid-cycle margin valuations to approximate intrinsic value. Image Source: Business Insider, St. Louis Fed, Henry Blodget
