Member Articles

Facebook, PayPal, Apple Earnings Reports and More!

by

Image shown: Qualcomm’s chart is looking mighty attractive. By Brian Nelson, CFA We continue to like Facebook (FB), PayPal (PYPL) and Apple (AAPL) as ideas in the Best Ideas Newsletter portfolio following their calendar second-quarter 2021 reports, released recently. Vertex Pharma (VRTX) is our favorite way to play emerging CRISPR technologies through its partnership with CRISPR Therapeutics (CRSP), and we were mighty pleased with Dividend Growth Newsletter portfolio holdings Republic Services (RSG) solid 8% dividend increase and Qualcomm’s (QCOM) impressive momentum. Facebook’s revenue soared 56% in the second quarter, and the company leveraged its operating margin to over 1000 basis points of year-over-year expansion. Both net income and diluted earnings per share more than doubled at the social media giant … Read more

Microsoft’s Dividend Is Rock Solid But Why?

by

Image Shown: Valuentum’s Dividend Report on Microsoft. The Dividend Cushion Ratio Deconstruction reveals the numerator and denominator of the Dividend Cushion ratio for Microsoft. At the core, the larger the numerator, or the healthier a company’s balance sheet and future free cash flow generation, relative to the denominator, or a company’s cash dividend obligations, the more durable the dividend. In the context of the Dividend Cushion ratio, Microsoft’s numerator is larger than its denominator suggesting strong dividend coverage in the future. The Dividend Cushion Ratio Deconstruction image puts sources of free cash in the context of financial obligations next to expected cash dividend payments over the next 5 years on a side-by-side comparison. Because the Dividend Cushion ratio and many … Read more

The Valuentum Buying Index’s Flow Chart

by

Image: The Valuentum Buying Index (VBI) flow chart. Each stock in our general operating coverage receives a systematically-applied rating. The VBI should never be used by itself. By Brian Nelson, CFA We witnessed some solid second-quarter reports from Alphabet (GOOG) (GOOGL) and Microsoft (MSFT) after the close July 27, and Facebook (FB) is trading higher in sympathy with Alphabet’s blockbuster report. We maintain our view that big cap tech and large cap growth are the areas to be, and today, we’re pounding the table on our $3,500 fair value estimate of Alphabet. Note, we raised Alphabet’s fair value estimate yesterday, and as is customary with our update cycle, the tables on the stock web page will be refreshed with updated … Read more

High-Yielding AT&T Remains Free Cash Flow Cow

by

Image Shown: AT&T Inc’s core businesses in the wireless and fiber arenas continue to gain subscribers at a rapid pace, while its HBO/HBO Max offerings are also growing at a nice clip. Image Source: AT&T Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan On July 22, AT&T Inc (T) reported second quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company added 1,156,000 net postpaid customers to its core ‘Mobility’ business including 789,000 net postpaid phone customers, aided by its lowest churn rates ever at just below 0.7%. AT&T also added 174,000 net prepaid phone customers while its AT&T Fiber business added 246,000 net customers last quarter. We include shares of AT&T as … Read more

The Valuentum Buying Index as a Differentiating Factor

by

“No other research provider has approached mapping the market in this manner, making Valuentum’s research a differentiating factor behind your practice and a must-have for any investor.” — Brian Nelson, CFA  By Brian Nelson, CFA We have a huge day of earnings coming out today, and we’re excited about the upcoming releases at Apple (AAPL), Alphabet (GOOG) (GOOGL) and Microsoft (MSFT) after the close. Facebook (FB) is scheduled to report after the market close tomorrow, July 28. The important consideration, however, is how these reports impact our long-term forecasts, and we won’t be reading much into their share-price reaction to the reports, whether good or bad. Valuentum stock reports for Apple here (pdf), Facebook here (pdf), Alphabet here (pdf), PayPal … Read more

Why Valuentum Buying Index Ratings Matter

by

By Valuentum Editorial Staff Let’s take a look at the results of a case study of an institutional money manager’s application of the Valuentum Buying Index rating system. Please be sure to consult your personal financial advisor if any idea or strategy is right for you. The Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Results are hypothetical and do not represent actual trading. Valuentum is an investment research publishing company. Past results are not a guarantee of future performance. Note: We’ve released a new, updated report since the publication of the following case study. To download a study on the evaluation of 20,000+ individual time series of Valuentum Buying Index ratings, please see here. Please be sure … Read more

Chinese Stocks Getting Hammered

by

Image shown: A confluence of factors are driving Chinese stocks lower, not the least of which is heightened regulatory concerns. By Brian Nelson, CFA The collapse in Chinese equities (FXI) (MCHI) during the trading session July 26 is a reminder (again) why you should consider combining momentum with *enterprise valuation* in stocks, as in the Valuentum process. It’s not enough for you to think a stock is undervalued or cheap. The market must agree with you, too. A falling stock price says the market disagrees. Our favorite ideas for consideration are always in the newsletter portfolios, whether the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, or High Yield Dividend Newsletter portfolio. We do not have any direct exposure to … Read more

Best Ideas Newsletter Portfolio Soars!

by

Image shown: The top weighted ideas in the Best Ideas Newsletter portfolio continued to lead the charge during the trading session Friday, July 23. Facebook and Alphabet rallied on favorable reports from social media peers, while Vertex continues to recover thanks in part to encouraging views on CRISPR technology, while Visa looks to be back on track. DPZ had a strong trading session July 22 and experienced some profit taking. Image source: Seeking Alpha.  By Brian Nelson, CFA Add options commentary to your membership >> During the trading session July 23, shares of top-weighted Facebook (FB) surged 5.3%, to close at $369.79. In December 2018, Facebook’s shares were trading hands in the mid-$120s, and the past few years have been … Read more

Shares of Best Idea Domino’s Pizza Jump Higher!

by

Image Shown: In the wake of Domino’s Pizza Inc’s stellar fiscal second quarter earnings report published on July 22, shares of DPZ surged higher. We include Domino’s Pizza as an idea in the Best Ideas Newsletter portfolio and continue to be huge fans of the name. By Callum Turcan On July 22, Domino’s Pizza Inc (DPZ) reported second quarter earnings for fiscal 2021 (period ended June 20, 2021) that smashed past consensus top- and bottom-line estimates with its US same-store sales growing by 3.5% and its international same-store sales increasing by 13.9%. The company noted that last fiscal quarter represented its 41st consecutive quarter of same-store sales growth in the US as its digital and delivery investments over the past decade … Read more

Dividend Increases/Decreases for the Week July 23

by

Below we provide a list of firms that raised their dividends during the week ending July 23. 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 1st Source (SRCE): now $0.31 per share quarterly dividend, was $0.30. Applied UV Inc – 10.50% PRF PERPETUAL – Ser A (AUVIP): now $0.2188 per share quarterly dividend. Aquesta Financial (AQFH): now $0.14 per share annual dividend, was $0.12. Bank of Marin Bancorp (BMRC): now $0.24 per share quarterly dividend, was $0.23. BCB Bancorp (BCBP): now $0.16 per share quarterly dividend, was $0.14. Bryn Mawr Bank … Read more