Member Articles

ICYMI: The PayPal Wave Recedes, We Still Like Shares

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This article was originally published November 10, 2021. The fair value estimate has been updated in this version. Video: PayPal By Brian Nelson, CFA We knew something wasn’t quite lining up at digital-payments provider PayPal (PYPL) when the rumor mill started to turn with reports it was interested in scooping up Pinterest (PINS) for a pretty penny. PayPal has since put to rest rumors about buying Pinterest, but it left investors with a sour outlook when it issued third-quarter 2021 results November 8. Though the market wasn’t happy with the forecast for the fourth quarter of 2021 and into 2022, the company continues to grow revenue at a robust pace, and we expect several key initiatives to drive sustainable top-line … Read more

Shares of Dividend Growth Idea Qualcomm Surge Higher

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Image Shown: Shares of dividend growth idea Qualcomm Inc have skyrocketed since the start of November in the wake of its latest earnings update and favorable guidance put out during a recent investor day event. By Callum Turcan Over the next decade, dividend growth idea Qualcomm Inc (QCOM) expects its addressable market opportunity will grow by $100 billion, reaching $700 billion, according to guidance put out during a big Investor Day event held on November 16. We appreciate Qualcomm’s ever-expanding growth runway and include shares of QCOM as an idea in the Dividend Growth Newsletter portfolio. On November 3, Qualcomm reported fourth-quarter fiscal 2021 earnings (period ended September 26, 2021) that beat both consensus top- and bottom-line estimates. Additionally, Qualcomm … Read more

Cisco Systems Posts Solid Earnings Update; Supply Chain Hurdles Impacting Near Term Outlook

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Image Source: Cisco Systems Inc – First Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On November 17, Cisco Systems Inc (CSCO) reported first quarter earnings for fiscal 2022 (period ended October 30, 2021) that missed consensus top-line estimates but beat consensus bottom-line estimates. Shares of CSCO fell initially after its latest earnings update was published due to its near term guidance coming in a tad softer than expected, though we caution that this is primarily due to supply chain headwinds negatively impacting Cisco Systems and the networking hardware industry more broadly. As global health authorities work towards bringing the coronavirus (‘COVID-19’) pandemic to an end worldwide, the supply chain situation should improve going forward. We include Cisco … Read more

High-Yielding Idea CyrusOne Gets Bought!

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Image Shown: CyrusOne, an idea in the High Yield Dividend Newsletter portfolio, announced it was getting bought out on November 15. By Callum Turcan CyrusOne (CONE), a data center real estate investment trust (‘REIT’) included as an idea in the High Yield Dividend Newsletter portfolio, announced on November 15 that the private equity firm KKR & Co Inc (KKR) and the infrastructure investment fund Global Infrastructure Partners (‘GIP’) is buying the REIT for $90.50 per share in cash. Overview According to the press release, the ~$15 billion deal (including the assumption of debt) is expected to close by the second quarter of 2022 and has already been unanimously approved by CyrusOne’s board of directors. CyrusOne’s shareholders still need to approve of … Read more

Shares of Dividend Growth Idea Home Depot Roar Higher After Latest Earnings Update

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Image Shown: Shares of dividend growth idea Home Depot Inc have surged higher year-to-date on the back of the home improvement retailer’s stellar operational performance and impressive free cash flow generating abilities. We liked what we saw in Home Depot’s latest earnings report published on November 16. By Callum Turcan On November 16, Home Depot Inc (HD) reported earnings for the third quarter of fiscal 2021 (period ended October 31, 2021) that smashed past both consensus top- and bottom-line estimates. Shares of HD are up ~48% year-to-date (before taking dividend considerations into account) as of the end of normal trading hours on November 16 after shares surged higher by ~6% that day as investors clearly appreciated Home Depot’s latest earnings … Read more

Asset Allocators Fail, Advisors Should Pick Stocks, Save Investors $34 Billion Annually

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  Image: The area of large cap growth has trounced that of the 60/40 stock/bond portfolio for more than a decade. Image Source: Morningstar. By Brian Nelson, CFA We’ve all heard the stories. Professional stock pickers can’t beat a bunch of monkeys throwing darts at the pages of the WSJ. A cows’ investment decisions are just as good as the pros’. Stock prices reflect all available information so not even professionals have an edge (e.g. the efficient markets hypothesis). Most professionals can’t outperform their respective benchmarks, so how could mom and pop? Look at this from one of today’s bloggers: The traditional argument, which you’ve probably heard many times before, goes as follows: since most people (even the professionals) can’t … Read more

The Valuentum Weekly Is a Hit! Only Delivered By Email!

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Image: Excerpt from the November 14 edition of the Valuentum Weekly. November 14, 2021: Inflation Is Positive for Nominal Earnings While Interest Rates Remain at All-Time Lows Tickers mentioned: GOOG, FB, PYPL, DIS, JNJ, BRK.A, BRK.B, ASML, BYND, RIVN, TSLA, JD, WB, BABA, GE, TOSBF, Z, ZG, OPEN, RBLX, GLD November 7, 2021: Large Cap Growth Has More Room to Run Tickers mentioned: SCHG, GME, AMC, BBBY, CVX, XOM, XLE, MA, V, PYPL, QCOM, RSG, NEM, TSLA, PTON, Z, ZG, F, IWN, GMET October 31, 2021: Happy Halloween! Tickers mentioned: AAPL, AMZN, QQQ, SPY, INTC, FB, GOOG, MSFT, LMT, MVRS, DLR, XOM, CVX, DIS, SLB, HON, INTC, CMG, PYPL, PINS, TSLA, HTZZ, PTLO, RSG, SBUX, MCD, NEM, SCHG, IWN October 24, … Read more

Hut 8 Mining Is an Interesting Play on Cryptocurrencies

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Image Source: Hut 8 Mining Corporation – November 2021 IR Presentation By Callum Turcan Hut 8 Mining Corporation (HUT) is headquartered in Toronto, Canada (in the province of Ontario), and “mines” digital assets from two operations in Alberta, Canada (in the city of Medicine Hat and town of Drumheller). The firm is in the process of developing a third mining operation in Ontario, Canada, at the small city of North Bay, having secured a long-term power purchase agreement with Validus Power Corp. Overview  Though Hut 8 Mining mines for both bitcoin (BITO) and ether, two of the most popular cryptocurrencies, when it mines for Ether it historically has preferred to get paid in bitcoin. Hut 8 Mining has built up … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

Musings on Veterans Day

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Image Source: The US Army. American assault troops in a landing craft huddle behind the protective front of the craft as it nears a beachhead, on the Northern Coast of France. Smoke in the background is Naval gunfire supporting the land. 6 June 1944. By Brian Nelson, CFA Reflections of the Allied efforts on June 6, 1944, in Operation Overlord, more commonly known as D-Day, were on my mind this Veterans Day. The brave soldiers, sailors, and airmen that lost their lives in the largest amphibious assault ever carried out should never be forgotten, and it’s really no trouble at all for me to hit the keyboard in honor of their remembrance. School books in the US tend to focus more … Read more