Brian Nelson

Ballmer’s Last Big Move? Acquire Nokia’s Mobile Phone Unit

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Late Monday night, news broke that Dividend Growth Newsletter portfolio holding Microsoft (click ticker for report: ) will acquire Nokia’s (click ticker for report: ) device and services business for $7.1 billion. Though rumors about a deal have swirled since the two companies partnered for the Lumia, the timing is somewhat shocking, in our view. With CEO Steve Ballmer to depart within the next twelve months, we assumed he wouldn’t make any major splashes. Deal Details On the surface, this deal seems a lot like Google’s (click ticker for report: ) acquisition of Motorola Mobility. However, the details differ materially, particularly since Microsoft didn’t acquire the entire Nokia business. Further, Nokia will retain its patent portfolio and lease its patents … Read more

Valuentum’s September Edition of Its Dividend Growth Newsletter

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Don’t Be Lulled to Sleep by Brian Nelson, CFA When everything seems to be going your way in the stock market, it’s always best to make sure you’ve got your bases covered, as fortunes in this business can change on a dime. As we continue to significantly exceed the goals of our Dividend Growth portfolio(*), we continue to be cognizant of the Big Three: Syria, a new Fed chief, and the looming debt ceiling. For a deeper read on these three headline dynamics that could send the market into a tailspin for the remainder of the year, please click the following link (login required): /20130827 We’re not saying that the back half of 2013 will be tough for investors, but with … Read more

Firms Raising Their Dividends in the Week Ending August 30

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Below we provide a list of firms that upped their dividends for the week ending August 30. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here (or use our ‘Symbol’ search box in our website header). Firms Raising Their Dividends This Week BancorpSouth (BXS): now $0.05 per share quarterly dividend, was $0.01. Eastgroup Properties (EGP): now $0.54 per share quarterly dividend, was $0.53. Escalade (ESCA): now $0.09 per share quarterly dividend, was $0.08. FBL Financial (FFG): now $0.15 per share quarterly dividend, was $0.11. Harris Corp (HRS): now $0.42 per share quarterly dividend, was $0.37. MB Financial (MBFI): now $0.12 per share quarterly dividend, was $0.10. … Read more

Tiffany Is Getting Back on Track

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Luxury jeweler Tiffany (click ticker for report: ) posted decent second quarter results Tuesday morning. Sales increased 4% year-over-year to $926 million, falling slightly short of consensus estimates, but not enough to warrant concern. Earnings per share were 15% higher than the year-ago period at $0.82, several pennies higher than consensus expectations. Source: Valuentum, Company Filings Same-store sales growth at Tiffany wasn’t bad during the second quarter, up 5% year-over-year on a constant-currency basis. However, it is hard to ignore the two-year trend that is clearly declining, as the two-year stacked comp shows (see light blue line on right in image above). Americas Recent trends in the Americas region reveal that much of Tiffany’s potential growth in the market has … Read more

Strength in Footwear Persists

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Shoe retailers DSW (click ticker for report: ) and Brown Shoe Company (BWS) posted better-than-expected second-quarter results. DSW On Tuesday, DSW’s second-quarter release revealed that its sales surged 9.7% year-over-year to $562 million, easily exceeding consensus expectations. Earnings per share adjusted for luxury testing and the termination of Retail Venture Inc’s pension plan increased 47% year-over-year, to $0.97. Image Source: Valuentum, Company Filings After same-store sales slipped 2.4% during the first quarter, DSW returned to growth in the second quarter, with same-store sales 4.4% higher than the same period a year ago, re-accelerating the two-year comp trend (8.6%). Not only has DSW added some new merchandise to stores with necklaces and other small accessories, but management pointed to strength in … Read more

Joy Global: Business Is Bad and Getting Worse; Share Buybacks Are Value Destructive

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The Power of a Valuentum Buying Index (VBI) Score of 1–the worst possible measure Mining equipment maker Joy Global (click ticker for report: ) posted lackluster results Wednesday for its fiscal year 2013 third quarter. Competitor Caterpillar (click ticker for report: ) posted similarly weak results as it deals with many of the same weakening global trends that are impacting Joy Global. During the period, Joy Global’s revenue declined 7% year-over-year to $1.3 billion, though that was better performance than consensus estimates predicted. Excluding items, earnings per share fell 9.1% year-over-year to $1.70, which was also slightly above consensus estimates. Free cash flow was actually better than the prior-year quarter at $320 million, equal to 24% of total revenue. Image … Read more

The Potash Situation Gets More Interesting

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Late last month, Russian producer Uralkali backed out of a highly profitable and rational potash cartel arrangement, creating a free-for-all in the global potash market. As a result, shares of North American potash producers such as Potash (click ticker for report: ), Mosaic (click ticker for report: ), Agrium (click ticker for report: ), and Intrepid Potash (click ticker for report: ) have come under significant pressure as a result of the prospects for significant lower economic returns. Then mining giant BHP (click ticker for report: ) confirmed it will invest in its Jansen potash project, which will add even more potash supply to the market. A look at industry bellwether Potash’s shares below reveals the recent difficult performance experienced by the … Read more

Headline Risk Entering the Market

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The summer months have been relatively uneventful, with the exception of concerns relating to the Federal Reserve’s coming tapering of its bond-buying program and quibbles between hedge fund giants over a company that makes protein shakes—we’re talking about Herbalife (HLF) in the latter example. Even the sequester proved to be a largely underwhelming event so far through 2013. As a result, the market has focused on fundamentals, awarding strong performance and punishing poor performance (almost irrespective of valuation parameters). However, the market remains fully valued at current levels, with the forward price-to-earnings ratio on S&P 500 companies in-line with its 10-year average at 14.1 times, and the distribution of our Valuentum Buying Index ratings tilting decidedly negative. The forward price-to-earnings … Read more