Adobe’s Fourth-Quarter Outlook Reassures Investors; Firm Continues to Generate Significant Cash Flow
September 21, 2011
Adobe (ADBE) reported weak third-quarter results Tuesday, but provided a range for its fiscal fourth-quarter results that topped consensus estimates, representing revenue growth of 10% and earnings growth of 20% at the high end of its guided range. We’re maintaining our fair value estimate of $35 per share and make available our 16-page equity research report here. The firm’s total revenue advanced a modest 2% in the period, as expansion from subscription and services and support sales offset declines in product revenue. The company noted record educational revenue, strong growth in its digital video products, and solid performance with Acrobat. Services and support revenue grew a whopping 39% during the period, and we expect continued rapid expansion from this revenue
Netflix’s Stock Craters, As Expected
September 20, 2011
Click below to view: http://seekingalpha.com/article/281777-netflix-s-valuation-completely-absurd-significantly-overvalued
Why We’re Still Bullish on Collective Brands
September 20, 2011
As followers of Valuentum know, Collective Brands (PSS) was one of the first positions in our best ideas portfolio. Unfortunately, the timing could not have been worse, as the market collapsed upon itself, sending down Collective shares by over 30%. Since bottoming out at around $9, Collective has rallied nearly 50%, with the shares trading between $13 and $14. Given the announcement of “strategic initiatives” and its tremendous short-term out performance, we revisited our position and think that with or without a buyout, Collective remains one of our top picks. DCF Valuation: $24 At Valuentum, we ultimately think a crucial part of the investment process is applying a discounted cash flow model to arrive at a fair value estimate. This gives
United Tech’s Potential Bid For Goodrich To Start Wave Of Aerospace Acquisitions
September 19, 2011
As we outlined previously in our long-term outlook on aerospace demand, the sector is the place to be and represents the largest weighting in the market-beating portfolio contained within our Best Ideas Newsletter, with Precision Castparts (PCP), Astronics (ATRO), and Edac Tech (EDAC) as core holdings. We outline our forecast for large commercial aircraft demand below: As shown above, the expected growth rate of aircraft deliveries during the next five years is truly remarkable. Both Airbus and Boeing are ramping up production of their workhorse A320 and 737 programs to thwart potential cancellations as competition heats up from global rivals — Bombardier, etc. — in the narrowbody market. Boeing has resumed a target of producing seven 777s a month (from
Ancestry.com Has Staying Power, Has the Makings of a Double
September 16, 2011
This article appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/293902-why-ancestry-com-has-staying-power-a-double-in-the-making Ancestry.com (ACOM) has taken its shares of lumps following its second-quarter earnings release, which revealed a digestion of the massive growth in subscribers experienced in the first quarter. According to the most recent tally, roughly 25% of the free float of Ancestry.com’s shares are short — an absolutely amazing level given the profitability and growth of the firm. As we outlined in our second-quarter earnings note, we were pleased with the results and maintain that the firm is significantly undervalued: Subscriber growth of 28% from the same period a year ago fueled a 36% increase in the company’s top line during the quarter. We were particularly impressed with the level of average
Spirit Airlines Retains Cost Advantage, AMR and United Continental Trail Peers
September 14, 2011
In the commodified airline industry, the lowest-cost provider often dictates the price for any given route, and real pricing growth continues to elude this troubled industry. As a result, efficient and low-cost operations are paramount to success, and in many cases, essential for long-term survival. The primary metric used to gauge the cost structure of an airline is cost per available seat mile (CASM) — or the cost to fly one seat one mile, whether it’s occupied or not. Unfortunately, comparing one airline’s consolidated CASM with that of another offers little insight into which airline is truly more cost efficient, as some carriers sport regional operations and others vastly different route structures and fleets. To really compare the cost structures
Drinking from the Fire Hose: Making Smarter Decisions without Drowning in Information.
September 5, 2011
Valuentum’s subscriber base enjoys reading the latest and greatest investing books. As a result, Valuentum requests and receives business and investing books before they are officially released. Our editorial staff took a look at the following book, and here’s what we thought after reading it: Drinking from the Fire Hose: Making Smarter Decisions without Drowning in Information. By Christopher J. Frank and Paul Magnone. Portfolio, 2011. 256 p. ISBN 978-1-5918-4426-6. Book Release Date: September 1, 2011 Frank (vice-president of business-to-business and communications research at American Express) and Magnone (director of global business development and alliances at Openet) offer their take on the information overload facing organizations, and suggest that with a few simple questions it is possible to sort
Valuentum Selects Xignite to Provide Pricing and Financial Data for its Stock Reports
September 5, 2011
Woodstock, IL, September 4, 2011—Valuentum Securities, Inc, a provider of independent investment research, has chosen Xignite, Inc, the leading cloud services provider of on-demand financial market data and application components, to provide historical pricing data and financial statement data to power its 16-page equity research reports. As a leading provider of independent equity research, Valuentum is driven to provide individual investors with the most comprehensive stock analysis on the Web. Valuentum selected Xignite as a data partner because Xignite’s Web services delivery model and cost-effective pricing enabled Valuentum to further its mission to serve the growing needs of the individual investor without any additional investment in hardware, software, vendor tools, or custom coding. “As other equity research providers abandon the
Valuentum Begins Publishing 16-page Stock Research Reports
September 5, 2011
Woodstock, IL, September 4, 2011—Valuentum Securities, Inc., a provider of independent investment research, has begun publishing equity research reports for the largest U.S. companies. During the next 12 months, Valuentum plans to produce 16-page equity research reports for up to 1,800 companies currently monitored by its analyst team. The reports are available with a subscription to Valuentum.com, the company’s investment Web site. “We strive to be the champion of the individual investor, and our equity research reports are targeted to meet their needs.” said Brian Nelson, president of equity research at Valuentum. “The proliferation of untrustworthy financial opinions on the web and the poor performance of once-trusted independent equity research providers have left the individual investor underserved in today’s difficult market environment. Individual investors
Rush Could Ride the Coming Truck Upcycle to New Highs
September 2, 2011
Rush Enterprises (RUSHA) is a full-service, integrated retailer of commercial vehicles and related services. Through its network of Rush Truck Centers, the company provides one-stop service for the needs of its commercial vehicle customers, including retail sales of new and used vehicles, aftermarket parts sales, service/repair stations, and financing/leasing-related products (Image Source: 2010 Annual Report). Key Strengths The firm’s parts and services segment generates roughly 60% to 70% of total gross profit. This is a higher margin and recurring revenue stream — more lucrative than truck sales and its rental and leasing business lines (Image Source: 2010 Annual Report) Parts and services continue to grow rapidly. The firm is the only authorized dealer for Peterbilt, made by Paccar (PCAR) and International
