Member Articles

Oracle Posts Solid Earnings and Provides Favorable Near-Term Guidance

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On December 10, Oracle Corp (ORCL) reported second-quarter earnings for fiscal 2021 (period ended November 30, 2020) that beat both consensus top- and bottom-line estimates. In the fiscal second quarter, Oracle’s GAAP revenues advanced 2% year-over-year on the back of its ‘Cloud services and license support’ segment posting 4% sales growth. The company’s GAAP operating income rose 13% year-over-year last fiscal quarter, as operating expenses shifted lower 3% thanks to the efforts of Oracle’s management team to make cost containment efforts a priority. The firm’s diluted GAAP EPS came in at $0.80 during the second quarter of fiscal 2021, up 16% year-over-year thanks in part to its weighted-average outstanding … Read more

Starbucks’ Long-Term Outlook Is Improving

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Image Shown: Starbucks Corporation sees the total addressable market for coffee products growing by a decent clip over the coming years, which is forecasted to reach ~$450 billion in 2023. Image Source: Starbucks Corporation – 2020 Biennial Investor Day Presentation By Callum Turcan On December 9, Starbucks Corporation (SBUX) hosted its biennial Investor Day meeting, held virtually this year due to the ongoing coronavirus (‘COVID-19’) pandemic and updated its financial guidance for the next several fiscal years. For reference, Starbucks’ GAAP revenues and GAAP operating income fell 11% and 62% year-over-year, respectively, in fiscal 2020 (period ended September 27, 2020) as the company contended with headwinds created by the COVID-19 pandemic. Looking ahead, Starbucks expects to realize a “significant rebound” … Read more

Best Ideas Newsletter Portfolio Holding Disney Surges to All-Time Highs

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Image Shown: The reach of the Disney+ video streaming service continues to grow as The Walt Disney Company keeps expanding the service into new markets. Image Source: The Walt Disney Company – December 2020 Investor Day Presentation By Callum Turcan We continue to be big fans of The Walt Disney Company (DIS) and include shares of DIS in the Best Ideas Newsletter portfolio. Back when Disney’s stock price plummeted this past March, we stuck with our capital appreciation thesis and did not panic. Since then, shares of DIS have staged an impressive comeback and are currently trading near all-time highs. Shares of Disney are up ~22% year-to-date as of this writing, significantly outperforming the S&P 500 (SPY) which is up … Read more

AT&T’s Outlook Is Getting Brighter

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Image Shown: An overview of AT&T Inc’s capital allocation priorities over the coming years and a snapshot of its financial position at the end of September 2020. Image Source: AT&T Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan The rollout of 5G wireless packages in the US combined with expected growth at its video streaming business has significantly improved AT&T Inc’s (T) outlook during the past few months. We include shares of AT&T in the High Yield Dividend Newsletter portfolio (click here to learn more about the High Yield Dividend Newsletter), and as of this writing, shares of T yield ~6.6%. Headwinds caused by the ongoing coronavirus (‘COVID-19’) pandemic weighed negatively on AT&T’s financial and operational … Read more

FTC Attacks Facebook, Win-Win Scenario for Investors

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Image Shown: Facebook Inc has a large digital advertising business with global reach, but it does not have a monopoly on digital advertising or social media by any means. Image Source: Facebook Inc – Third Quarter of 2020 IR Earnings Presentation Summary Facebook is being sued by the FTC for allegedly engaging in monopolistic activities via its acquisition program. It’s important to note that the government is not seizing Facebook’s assets and that Facebook investors own the future free cash flow stream of the entire entity under any and every scenario–whether Facebook is retained in current form or whether it is broken into different parts through a potential IPO/spin-off of its Instagram and WhatsApp properties.  Under a status quo scenario, … Read more

Alphabet Continues to Move Higher, Supported By Its Promising Long-Term Growth Runway

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Image Shown: Alphabet Inc Class C shares have surged higher year-to-date as of this writing. We see room for additional capital appreciation upside. By Callum Turcan Alphabet Inc (GOOG) (GOOGL) is one of our favorite companies, and we include Alphabet Class C shares as a top weighting in the Best Ideas Newsletter portfolio. Shares of GOOG have staged an impressive recovery since March 2020, when the coronavirus (‘COVID-19’) pandemic sent equity markets spiraling lower, and we still see room for significant capital appreciation upside. Under our “base” case scenario, Alphabet Class C shares have a fair value estimate of $2,493 per share, well above where GOOG is trading at as of this writing. The summary valuation assumptions used in our … Read more

3 Speculative Stocks for Your Radar

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By Valuentum Analysts Etsy operates the online marketplace Etsy.com, which connects creative entrepreneurs with consumers looking to find unique crafts and goods. Stitch Fix was founded in 2011 and provides customers with personalized shipments (‘Fixes’) of apparel, shoes and other items that are hand-picked by the company’s stylists. Uber Tech first started in 2010 to make it easy for people to get a ride from point A to point B with the simple touch of a button. All three are breaking out to new highs, and we wanted to put them on the radar of risk-seeking investors. ETSY, Inc. (ETSY) Image: ETSY’s shares are up more than 270% year-to-date so far in 2020. The company continues to put up sizzling … Read more

Cantel Medical Surges Higher

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Image Shown: Shares of Cantel Medical Corporation popped higher during normal trading hours on December 8 after the firm’s latest earnings report indicated its recovery was well underway. By Callum Turcan On December 8, Cantel Medical Corporation (CMD) reported first quarter earnings for fiscal 2021 (period ended October 31, 2020) that beat both top- and bottom-line consensus estimates. Furthermore, Cantel Medical’s $297 million in GAAP revenues last fiscal quarter exceeded the top end of its forecast that was published on October 22, which had been raised above the revenue guidance range management put forward during the firm’s fourth quarter of fiscal 2020 earnings call that was held on September 17. Cantel Medical focuses on designing, developing, manufacturing, installing, and marketing … Read more

Visa Is a Great Company

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Image Shown: Visa Inc’s operations are on the rebound, though meaningful headwinds remain. Image Source: Visa Inc – Fourth Quarter and Full-Year Earnings for Fiscal 2020 IR Presentation By Callum Turcan We have been big fans of Visa Inc (V) for a long time and continue to include shares of V in our Best Ideas Newsletter portfolio as a top-weighted holding. Visa reported its fourth quarter and full-year earnings for fiscal 2020 (period ended September 30, 2020) in late October, which as expected saw the firm’s financial performance face significant headwinds due to the coronavirus (‘COVID-19’) pandemic. However, Visa’s outlook has improved tremendously during the past month as it appears there is a good chance that a safe and viable … Read more

Dollar General Continues to Impress

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Image Shown: Shares of Dollar General Corporation have surged higher over the past year. By Callum Turcan On December 3, Dollar General Corporation (DG) reported third quarter earnings for fiscal 2020 (period ended October 30, 2020) that saw its same-store sales grow by over 12% year-over-year, which when combined with its steadily growing store count, saw the firm’s GAAP revenues jump higher by over 17% year-over-year. Dollar General has made great strides in upgrading its digital operations, expanding its store base, adding new products to its stores, and improving its cost structure during the past several fiscal years. These past initiatives are filtering down to Dollar General’s bottom line as its diluted GAAP EPS was up 63% year-over-year in the … Read more