Member Articles

Best Idea Berkshire Hathaway Moving Higher!

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Image Shown: Shares of Berkshire Hathaway Inc Class B have been on a nice upward climb over the past year. By Callum Turcan On November 6, the industrial and insurance conglomerate Berkshire Hathaway Inc (BRK.A) (BRK.B) reported third-quarter 2021 earnings. We liked what we saw in its latest earnings update as most of its business segments reported strong results, save for some of its insurance businesses which took a hit from major weather events and headwinds resulting from more drivers being on the road. Shares of Berkshire Hathaway Class B (ticker: BRK.B) are included as an idea in the Best Ideas Newsletter portfolio. Earnings Update  The company prefers to highlight its underlying financial performance via its operating earnings metric as … Read more

ALERT: High Yield Dividend Newsletter Portfolio Changes

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Image: Mike Cohen Summary of Changes AT&T (T) – remove Global X SuperIncome Preferred ETF (SPFF) – to 5% from 10% Vanguard Real Estate ETF (VNQ) – to 5% from 10% Chevron Corporation (CVX) – initiate at 5% ExxonMobil Corporation (XOM) – initiate at 5% Magellan Midstream Partners, L.P. (MMP) – to 5% from 2.5% Enterprise Products Partners L.P. (EPD) – to 5% from 2.5% By Brian Nelson, CFA We released the Valuentum Weekly last night, which can be accessed here , but we saved our note regarding the High Yield Dividend Newsletter portfolio changes as well as portfolio updates to today, November 8. A few weeks ago, we mentioned that we had a change of heart with AT&T (T). … Read more

ASML Holding’s Bright Growth Outlook

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Image Shown: Shares of ASML Holding NV are booming higher as demand for its photolithography systems, a crucial part of the semiconductor supply chain, continues to grow at a robust pace. By Callum Turcan On October 20, Netherlands-based ASML Holding NV (ASML) announced third quarter fiscal 2021 earnings (period ended October 3, 2021) that saw its GAAP revenues (in Euro terms) grow by 32% year-over-year to reach $5.2 billion. The firm designs and manufactures photolithography systems that are used to produce semiconductor components, a crucial part of the semiconductor supply chain. At the higher end of things, ASML Holding operates in a virtual monopoly given that the firm is leaps and bounds ahead of the competition when it comes to … Read more

Qualcomm Explodes Higher Towards Our Fair Value Estimate; Semiconductor Supply Chain Update

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Image Source: Qualcomm’s shares have surged toward our fair value estimate. We continue to like shares of this dividend growth giant. By Brian Nelson, CFA  On November 3, communications chip-maker Qualcomm (QCOM) reported strong results for its fiscal fourth quarter (the calendar third quarter), rounding out an excellent fiscal 2021. We’re reiterating our $170 per share fair value estimate for QCOM and the company as an idea for long-term dividend growth investors. Shares yield ~1.7% at the time of this writing. The growth rates in revenues, earnings before taxes (EBT), net income, and diluted earnings per share (EPS) were fantastic for the fiscal year. On a GAAP basis, revenues leapt 43%, EBT advanced 80%, net income jumped 74%, while EPS … Read more

Our Favorite Energy Giants Chevron and ExxonMobil are Focused on Returning Cash to Shareholders

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Image Shown: Shares of Chevron Corporation (blue line) and ExxonMobil Corporation (orange line) are both up sharply year-to-date as of this writing. By Callum Turcan Two of our favorite energy companies, Chevron Corporation (CVX) and ExxonMobil Corporation (XOM), recently reported their third quarter 2021 earnings reports. We include Chevron and ExxonMobil as ideas in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios given their ample capital appreciation upside and promising dividend growth trajectories. The top end of our fair value estimate range for Chevron and ExxonMobil stands at $144 per share and $110 per share, respectively, well above where each company’s shares are trading as of this writing. Shares of CVX yield ~4.7% and shares of XOM yield … Read more

Large Cap Growth Has More Room To Run

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“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more

Newmont’s Third Quarter Earnings Disappoints Though Management Remains Very Shareholder Friendly

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Image Shown: Though Newmont Corporation’s third quarter earnings disappointed, the gold miner remains very shareholder friendly. Image Source: Newmont Corporation – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan One of our favorite mining plays is the gold miner Newmont Corporation (NEM), which has producing assets around the world including in Australia (EWA), Argentina, the Dominican Republic, Ghana, Mexico (EWW), Peru, Suriname, Canada (EWC), and the US. Newmont has a robust development pipeline in those countries via new producing mines and expansion projects (roughly 88% of Newmont’s reserves are in the Americas and Australia), along with potential upside in Japan, Ethiopia, Colombia, and elsewhere. The company’s management team is incredibly shareholder friendly (its quarterly payout has grown from … Read more

FinTech Stocks Still Attractive, Market Overreacting to Visa’s Cross-Border Travel Outlook

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Image: Visa continues to rake in the free cash flow. Though its outlook is clouded somewhat by recovering cross-border travel transaction volumes, we still like its asset-light, free-cash-flow rich business model. By Brian Nelson, CFA It’s easy to lose sight of everyday life when we hear stories about the latest and greatest cryptocurrency or the next iteration of yet another ETF that centers on one theme or another, but when we take a step back, almost all of us are still using and continuing to use one of a few payment options. Maybe it’s your Visa (V) Card, your Mastercard (MA), Discover (DFS) Card, American Express (AXP) Card, Capital One Financial (COH) Card or perhaps PayPal (PYPL), Stripe, or Square … Read more

Don’t Throw Out These Garbage Stocks

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Image Source: Republic Services By Brian Nelson, CFA The waste hauler industry is one of the most attractive in our coverage. It boasts recession-resistant characteristics, and its oligopolistic structure translates into strong pricing power for those that have disposal capacity. One thing that we can count on besides death and taxes is garbage, and while society is taking steps to limit waste, it’s something that will always be a part of the economic system. It’s easy to get excited about what’s happening in cryptocurrency or be enthralled by the latest and greatest ETF, but sometimes the most boring of stocks can make for some exciting returns. According to data from Seeking Alpha, Republic Services (RSG) has boasted a near-40% year-to-date … Read more

Apple Remains a Free Cash Flow Generating Powerhouse

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Image Shown: Apple Inc remained a free cash flow generating powerhouse in fiscal 2021. Key line-items are underlined in red and blue. Image Source: Apple Inc – Fourth Quarter of Fiscal 2021 Financial Supplement with additions from the author By Callum Turcan On October 28, Apple Inc (AAPL) reported fourth-quarter earnings for fiscal 2021 (period ended September 25, 2021) that missed consensus top-line estimates and matched consensus bottom-line estimates. Apple’s CEO, Tim Cook, noted during the firm’s latest earnings call that “we set a new September quarter record of $83.4 billion” though “supply constraints” weighed negatively on its performance and “had around a $6 billion revenue dollar impact” last fiscal quarter. Silicon shortages were cited as a key headwind, with … Read more