Member Articles

Newmont’s Outlook is Bright Due to More Than Just Gold Prices Rallying

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Image Source: Newmont – Third Quarter 2019 Earnings IR Presentation We are in the process of updating our models on Newmont in light of recent events. By Callum Turcan Newmont Corporation (NEM) announced a huge boost to its dividend on January 6, with its quarterly payout growing by 79% to $0.25 per share from $0.14 previously. As of this writing, that’s good for a forward-looking yield of ~2.4%. Additionally, the company reiterated its commitment to buying back its stock now that the merger between Newmont and Goldcorp is firmly in the rear view mirror (Newmont Corporation used to be known as Newmont Goldcorp Corporation, a name that was shortened this year). We continue to like the name as one of … Read more

Our Reports on Stocks in the Semiconductor Equipment Industry

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Image Source: Applied Materials Structure of the Semiconductor Equipment Industry The semiconductor equipment industry is highly competitive and characterized by rapid technological change. Success hinges on the ability to commercialize new technology in a timely manner, continuously enhance products to improve efficiency of customer fab operations, and manage costs and inventory effectively. Performance of constituents is heavily influenced by manufacturing capacity and fab utilization rates, which together create volatile demand cycles. The potential for unexpected shifts in demand for the group’s products leaves us unexcited about the industry’s structural characteristics. We’ve optimized our technology coverage. Reports can be found here.

Dividend Increases/Decreases for the Week Ending January 10

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Below we provide a list of firms that raised their dividends during the week ending January 10. 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 Atco (ACLTF): now CAD 0.4352 per share quarterly dividend, was CAD 0.4048. B. Riley Financial Series A Cum Ppptl Pref Stk (RILYP): now $0.4297 per share quarterly dividend, was $0.1146. Bridge Bancorp (BDGE): now $0.24 per share quarterly dividend, was $0.23. Canadian Utilities (CDUAF): now CAD 0.4354 per share quarterly dividend, was CAD 0.4227. Clough Global Equity Fund (GLQ): now $0.1104 per share monthly dividend, was … Read more

Yum! Brands Buys Habit Restaurants

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Image Shown: An overview of Yum! Brands Inc’s operations. Image Source: Yum! Brands Inc – Investor Fact Sheet By Callum Turcan On January 6, quick-service restaurant chain Yum! Brands Inc (YUM) (which owns the KFC, Pizza Hut, and Taco Bell brands) announced that it was acquiring fast causal burger joint Habit Restaurants Inc (HABT) for $14 per share in cash for a total cash consideration of $375 million. Habit Burger’s footprint includes ~265 restaurants in total across more than a dozen US states and China under its namesake brand, Habit Burger Grill, and please note roughly 90% of those locations are company-owned. While Habit Restaurants’ footprint is relatively small compared to Yum! Brands’ footprint of over 49,000 locations in more … Read more

Our Reports on Stocks in the Healthcare REIT Industry

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Images Source: HCP Structure of the REIT – Healthcare Industry The healthcare REIT industry is comprised of companies spanning the full spectrum of healthcare real estate. Firms compete vigorously with other entities in the acquisition and financing of health care properties. Tenant revenues are generated by occupancy, private pay rates, and Medicare/Medicaid, though government reimbursement could come under pressure. Costs, including labor and taxes, continue to increase for operators, reducing the credit health of customers. Still, the group benefits from strong demographic trends (aging population), which shines a favorable light on the overall industry structure. For our report coverage of REITs, please click here.

Our Reports on Stocks in the Software Security Industry

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Image Source: Martin McKeay Structure of the Software (security) Industry Participants in the software security industry focus on protecting important information wherever it resides—whether in servers, computers, mobile devices, or in the cloud. The space is intensely competitive, and some companies may offer their technology for free, engage in aggressive marketing, or pursue competitive partnerships. Firms also face indirect competition from application/operating system providers that may embed security solutions/functions in their own products. Participants must continuously develop new and enhanced services to meet changing customer demands. We’re neutral on the group. We’ve optimized our technology coverage universe. Software security firms can now be found here.

Update: US and Iran Now De-escalating Tensions

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By Callum Turcan On January 7, Iran retaliated against the US for the killing of Iranian major general Qasem Soleimani (leader of a group that the US has deemed a terror threat under the Trump administration) less than a week earlier by firing missiles from Iranian soil at bases in Iraq that contain US, Iraqi, and coalition troops. The Iranian government aggressively publicized the attack by providing Iranian media outlets with footage of missiles leaving Iran that were targeted towards Iraq. Fortunately, no US, Iraqi, or coalition casualties were reported. We are very thankful that nobody was hurt as a result of the Iranian missile strike. For our first article covering recent events regarding Middle East tensions, click here. In … Read more

Middle East Tensions on the Rise

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By Callum Turcan Early Friday (Arabian Standard Time) on January 3 (the strike was carried out late Thursday evening Eastern Standard Time), under the orders of President Trump, the US took out major general Qasem Soleimani who was the leader of Iran’s Quds military group within the Islamic Revolutionary Guard Corps (‘IRGC’). Please note the US designated the IRGC as a Foreign Terrorist Organization in April 2019, and that the justification for the strike was due to there being an immediate threat to US lives (namely soldiers and contractors stationed in the Middle East), according to the Pentagon. It’s important to note that the strike occurred on Iraqi soil. The Quds force is known to be Iran’s extraterritorial military outfit, … Read more

Dividend Cushion Ratio Catches Another Dividend Cut

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Image Shown: Tupperware Brands Corporation suspended its dividend in November 2019, a pitfall investors could have avoided by utilizing Valuentum’s proprietary Dividend Cushion ratio. We plan to refresh our report on Tupperware after members get a chance to digest this analysis to better understand how to use the Dividend Cushion ratio. By Callum Turcan Our Dividend Cushion ratio can be a very useful tool for income seeking investors that wish to avoid payout cuts and the likely capital depreciation that follows. The Dividend Cushion ratio is based on our forecast of the firm’s future free cash flows over the next five full fiscal years, less its net debt or plus its net cash position, divided by its expected dividend obligations … Read more

Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds

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Image: President of Investment Research Brian Nelson, CFA By Brian Nelson, CFA A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception. Though the book focuses more on the life and times of founder Jim Simons and dedicated only a page or two to the fall of Long-Term Capital Management (LTCM), another quant fund that went belly-up during the late 1990s, it was nonetheless a thoroughly interesting and enjoyable read. But why I am bringing up one of the most successful quant … Read more