Brian Nelson

Opinion: Is Amazon Prepared to Tackle the Pharmacy Market?

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The meteoric rise of Amazon, both with respect to the breadth of its business operations and stock price, continues. On news of the rumor of its potential entry into the pharmacy market, entities speculated that may feel an impact immediately sold off. Though it’s much too early to estimate the extent of any impact Amazon’s entrance into the pharmacy market may bring, let’s take look at potential implications, courtesy of healthcare and biotech contributor Alexander J. Poulos. By Alexander J. Poulos Recent Amazon Hire Ignites Speculation Amazon (AMZN) has quietly added a leader to build an in-house Pharmacy Benefit Manager (PBM) for its employees. Mark Lyons, formerly of Premera Blue Cross, has joined the e-commerce and web services giant, and … Read more

Dividend Increases for the Week Ending June 9

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Below we provide a list of firms that raised their dividends during the week ending June 9. 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 Alexandria Real Estate Equities (ARE): now $0.86 per share quarterly dividend, was $0.83. Canterbury Park (CPHC): now $0.06 per share quarterly dividend, was $0.05. Global Payments (GPN): now $0.0133 per share quarterly dividend, was $0.01. Legg Mason (LM): now $0.28 per share quarterly dividend, was $0.22. PetroChina Company Limited (PTR): now $0.4756 per share semi-annual dividend, was $0.2692. Sabine Royalty Trust (SBR): now $0.2126 per share … Read more

Glossary of Valuentum Terms

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Image Source: Courtney Collison The following terms are found in our 16-page stock reports and our dividend reports: Business Quality Matrix. We compare the firm’s ValueCreation and ValueRisk ratings. The box is an easy way for investors to quickly assess the business quality of a company. Firms that generate economic profits with little operating variability score near the top right of the matrix. Cash Flow Generation. Firms’ cash flow generation capacity are measured along the scale of STRONG, MEDIUM, and WEAK. A firm with a 3-year historical free cash flow margin (free cash flow divided by sales) greater than 5% receives a STRONG rating, while firms earning less than 1% of sales as free cash flow receive a WEAK rating. … Read more

Verint’s Cyber Intelligence Division Impresses

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Image Source: Blogtrepreneur One of the latest additions to the Best Ideas Newsletter portfolio experienced strong top-line growth in both of its operating segments during the first quarter, and we continue to like the company’s exposure to the cyber intelligence arena. By Brian Nelson, CFA Our thesis on Verint (VRNT) is unchanged after the company reported strong first-quarter 2017 results June 7 led by a Cyber Intelligence division that experienced revenue growth of 19% on a year-over-year basis. Verint is one of our favorite ideas to capitalize on the increased spending to prevent cybercrime. We do not expect to make any changes to our fair value estimate at this time, and we plan to continue to include the idea in … Read more

Labor and the Economic Cycle

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As we arguably near the “peak” in the business cycle, labor is starting to demand more, a dynamic that we believe is emblematic of the period of aging economic expansion. Let’s have a look at what’s happening in the fight for higher wages. By Brian Nelson, CFA Each business cycle is different in both magnitude and duration, but there are some common qualities that define where an economy might be within the cycle. First, it has been more than 8 years since the March 2009 stock-market panic bottom, a period that witnessed firms such as Lehman Brothers, Bear Stearns, and AIG (AIG) flounder. The unemployment rate peaked at 10% during that difficult time. Since then, the US economy has emerged … Read more

Dividends Increases/Decreases for the Week Ending June 2

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Below we provide a list of firms that raised/lowered their dividends during the week ending June 2. 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 American Tower (AMT): now $0.64 per share quarterly dividend, was $0.62. CoreSite Realty (COR): now $0.90 per share quarterly dividend, was $0.80. KLA-Tencor (KLAC): now $0.59 per share quarterly dividend, was $0.54. Laurentian Bank of Canada (LRCDF): now CAD 0.62 per share quarterly dividend, was CAD 0.61. Lowe’s Companies, Inc. (LOW): now $0.41 per share quarterly dividend, was $0.35. Monro Muffler (MNRO): now $0.18 per share … Read more

Dollar General: 27 Consecutive Years and Counting

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The dollar store industry is one that often flies under the radar of many investors that are looking for more glamorous ideas. However, the often-counter recessionary trends of their businesses coupled with unit proliferation makes them worthy of consideration, in our view. We like Dollar General the most. By Brian Nelson, CFA We added discount retailer Dollar General (DG) to the Best Ideas Newsletter portfolio April 13, “…2 New Additions to the Best Ideas Newsletter Portfolio.” The 75+ year old company that offers everything from food and snacks to cleaning supplies and clothing has more than 13,300 stores in 40+ states. Despite its already massive store base and a retail environment that remains in flux, fiscal 2016 marked its 27th … Read more

Dividend Increases/Decreases for the Week Ending May 26

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Below we provide a list of firms that raised/lowered their dividends during the week ending May 26. 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 Advanced Drainage Systems (WMS): now $0.07 per share quarterly dividend, was $0.06. Agree Realty (ADC): now $0.505 per share quarterly dividend, was $0.495. Bank of Montreal (BMO): now CAD 0.90 per share quarterly dividend, was CAD 0.88. Bunge (BG): now $0.46 per share quarterly dividend, was $0.42. China Yuchai (CYD): now $0.90 per share annual dividend, was $0.85. Clipper Realty (CLPR): now $0.095 per share quarterly … Read more

Alexion’s Executive Departures and an Update from Regeneron Pharma

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Image shown above: Performance of Regeneron since the summer of 2013. An executive scandal continues to mar the performance of Alexion Pharmaceuticals. The CFO has resigned his position effective the end of August, but there is more to this story. Let’s also talk Regeneron. By Alexander J. Poulos We continue to admire innovative companies in industries that can have a meaningful impact on our everyday lives. Valuentum’s Best Ideas Newsletter portfolio, for example, houses a number of technology firms that have become ubiquitous in our daily lives. We admire such companies, but while also innovative, entities in the mid- to large-cap biotech industry (IBB, XLF) can be considered much more risky on a fundamental basis than any newsletter portfolio holding, … Read more

Alerts – Spring Cleaning in the Newsletter Portfolios

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We’re making a number of changes to the newsletter portfolios. By Brian Nelson, CFA Changes in Dividend Growth Newsletter portfolio We’re removing Medtronic. Medtronic (MDT) reported decent fiscal fourth-quarter results May 25 that showed revenue advancing ~5% and bottom-line earnings-per-share beating consensus by a couple pennies. We’re not messing around in this frothy market though, and we’ve learned from our miscue with Teva Pharma (TEVA). Medtronic has too much debt this late into the credit cycle for our comfort, and frankly, we’re starting to question more and more why it might have changed how it measures free cash flow. We’re letting shares go from the Dividend Growth Newsletter portfolio. The company was added to the Dividend Growth Newsletter portfolio under … Read more