Brian Nelson

Wal-Mart’s Sales Decline Doesn’t Matter

by

Global retailing goliath Wal-Mart (click ticker for report: ) posted lackluster results for its fiscal 2014 first quarter earlier this morning. Total sales increased just 1% year-over-year to $114 billion, below consensus expectations, as US same-store sales dipped 1.4%. Earnings per share increased 5% year-over-year to $1.14, which was a penny below consensus estimates. Free cash flow for the quarter totaled $1.9 billion, lower than that of the prior-year period, which benefitted from a substantial amount of accrued income taxes. Wal-Mart’s management team provided several reasons for the decline in same-store sales, including the delay in the payroll tax, the negative impact of one less selling day and adverse weather. All factors are likely valid for a company as broad … Read more

Cisco Surges On Solid Revenue Growth

by

Network switch maker Cisco (click ticker for report: ) reported solid fiscal third quarter results Wednesday afternoon, marked by strong revenue growth. Revenue increased 5% year-over-year to $12.2 billion, exceeding consensus expectations. Earnings were also above consensus estimates, growing 6% year-over-year to $0.51 per share on a non-GAAP basis. Free cash flow rose to $8 billion, up significantly from the $7.5 billion the firm generated in the first 9 months of fiscal year 2012 (Image Source: Cisco). Performance was strong across all geographies, with the Americas region boasting 10% revenue growth and robust gross margins. For the first time in recent memory, the firm’s US public sector business grew at 5% thanks to strong demand from education and state/local governments. The firm’s … Read more

The One Thing You Never Knew About Warren Buffett And Others Don’t Want You To Know

by

Warren Buffett is one of the most talked about investors of our time, but he is also the most misunderstood. We hope that what you read in this article will open your eyes to new investment horizons and strategies. We hope it will help you cut through the marketing materials of others that you read so much. And at the very least, we hope it will help you learn more about the Oracle. As you’re reading, it will be very important to keep in mind that it is not Warren Buffett’s admission of his mistake in this article, but the idea that he would pursue an investment of this quality in the first place. We ask: If he can make … Read more

Valuentum’s Presentation at the World Money Show in Las Vegas

by

Las Vegas | May 14, 2013 • Caesars Palace The Valuentum Team was invited by the MoneyShow to present its take on the ‘12 Most Important Steps to Understand the Stock Market‘ today, Tuesday May 14, 2013, from 5:45pm-6:45pm at Caesers Palace. 12 Steps to Understand the Stock MarketTuesday, May 14, 2013 | 5:45 pm – 6:45 pm View President of Equity Research Brian Nelson’s and Director of Research Development RJ Towner’s slide deck presentation below to learn more about how Valuentum has redefined the investment process and why combining a variety of investment perspectives is the key to successful stock selection. Also, learn more about our dividend products and unique dividend tools.

Jos A. Bank Warns on Earnings; We’re Not Touching This Stock

by

Troubled suit seller Jos A. Bank (click ticker for report: ) warned earlier this morning that its first-quarter earnings per share were going to fall in the $0.27-$0.30 range, which is well below the consensus estimate of $0.46 per share. This range is also well below the company’s first quarter earnings of $0.53 per share in fiscal year 2012. Management readily blamed lower average selling prices and higher input costs as weighing on margins, but we also think the company is having a hard time competing in the suit retail business. In our view, customers simply do not want the firm’s suits unless the value element is incredibly compelling. We also think the company missed a huge opportunity as the … Read more

A Great Question From a Member

by

Please note that this Q&A article is dated May 11, 2013. Q: I am thinking of starting to follow your dividend growth portfolio but question the inclusion of some of your holdings. You rate several either “Poor” or “Very Poor” on both growth and safety criteria. Why do you still hold these companies? Why use these rating criteria if you don’t follow them yourselves? Are you planning a change soon to unload some of these names that your own rating system deems undesirable at the present time? A: Thank you for your question. We may hold on to a dividend growth firm that does not score highly on our rating system as we look for an exit point. A really … Read more

Transformative Acquisitions Boost Energy Transfer Partners

by

Dividend Growth Newsletter portfolio holding Energy Transfer Partners (click ticker for report: ) posted solid first-quarter results as the firm continues to benefit from several acquisitions completed in 2012. Adjusted EBITDA more than doubled compared to the same period of 2012, to $956 million, and distributable cash flow increased 77% year-over-year to $622 million. So far in 2013, Energy Transfer Partners has announced a number of positive events: the acquisition of Holdco from Energy Transfer Equity (ETE); the selling of its interest in the Southern Union Company to Regency Energy Partners for cash and Regency units; and that its Sunoco Logistics (SXL) subsidiary entered an agreement to move forward with a liquefied petroleum gas project. In particular, we’re excited about … Read more

Main Street’s Solid Run Continues

by

Business development company Main Street (click ticker for report: MAIN) reported solid first quarter results Thursday afternoon, marked by a strong increase in net investment income and book value. Net investment income per share rose 35% year-over-year to $0.50 per share, easily eclipsing consensus estimates. Book value per share rose 2% sequentially to $18.55. During the first quarter, investment income rose 25% year-over-year to $25.6 million, driven largely by an increase in interest income as the company put more capital to work in debt investments. Dividends received from equity investments also increased $1 million. Although Main Street’s cash position isn’t very strong, sitting at $26.2 million, the firm recently expanded its credit facility by $65 million to $352.5 million, giving … Read more

Best Ideas Newsletter Portfolio Holding Precision Castparts Posts Blockbuster Fourth Quarter Results; Shares Soar

by

Best Ideas Newsletter holding Precision Castparts (click ticker report: ) leveraged powerful top-line expansion into terrific earnings growth during its fiscal fourth quarter. Revenue surged 25% year-over-year to $2.4 billion, which was roughly in-line with consensus estimates. Earnings followed suit, increasing 22% year-over-year to $2.82 per share, which was stronger than consensus expectations. While the company took on some debt in order to acquire Titanium Metals (Timet), total cash generation for fiscal year 2013 totaled $437 million (ex-acquisitions). On a segment basis, Investment Cast Products increased 5% year-over-year to $635 million during the fourth quarter. Yet, more impressive was the strong increase in operating margins, which advanced 110 basis points to 33.7%, driving income growth of 9%. Incremental margins on … Read more