Member Articles

Our Reports on Stocks in the Food Retailing Industry

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Image Source: Mike Mozart Structure of the Food Retailers Industry Firms in the mature food retailers industry generally have slim profit margins and face significant competition from brick-and-mortar locations (discount, department, drug, dollar, warehouse clubs and supermarkets) as well as Internet-based retailers (including Amazon). Though the industry is not terribly cyclical, economic conditions, disposable income, credit availability, fuel prices, and unemployment levels drive ticket size and traffic trends. Offering consumers a compelling value proposition is a must, even as higher-priced organic food offerings proliferate. We’re generally neutral on the group. We’ve reallocated our resources to cover more recession-resistant stocks. See here.

Our Reports on Stocks in the Computers & Peripherals (Memory) Industry

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Structure of the Computers & Peripherals Industry Firms in the computers and peripherals industry primarily make storage solutions, while others may offer custom-designed computer/mobile interface solutions or other ancillary computer/mobile products. The industry is characterized by rapid technological change, which has not only increased the adoption of technologies for use in a variety of devices but also has put significant pricing/gross-margin pressure on industry constituents. Competition is fierce, threats of over-supply are continuous, and the prospects for generating long-term competitive advantages are negligible. We don’t like the structure of the group. We’ve optimized our technology coverage. For reports, click here.

Our Reports on Stocks in the Machinery & Tools Industry

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Image Source: Compressor1 Structure of the Machinery & Tools Industry The machinery and tools industry is fragmented and highly competitive. Most constituents offer a wide range of products in a myriad of markets. Firms are heavily exposed to fluctuating raw material prices (steel, resins, chemicals) and the vicissitudes of the global economic cycle, including customer capital/maintenance budgets. Several companies are recognized worldwide for their strong brand names and reputation for quality, innovation and value, and we view such attributes as material competitive advantages. Though pricing competition is not absent, we like the structural characteristics of the group. We’ve optimized our industrials coverage. For industrial reports, please click here.

Dividend Growth Newsletter Portfolio Delivers Again in 2019

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Dividend Growth Newsletter Portfolio Delivers Again in 2019   —  Note: Due to the New Year holiday, we will be releasing the January 2020 editions of the Dividend Growth Newsletter and High Yield Dividend Newsletter Thursday, January 2.  —  By Brian Nelson, CFA    Hi everyone!   I haven’t forgotten about you, our dividend growth friends. At Valuentum, we’re huge fans of dividend growth stocks, and we use our valuation expertise to augment a newsletter portfolio of some of the best dividend growers on the market. Unlike other shops and most blogs that focus more on dividend growth track records, we also like to look forward, not only in the application of the forward-looking Dividend Cushion ratio, but also as … Read more

Dividend Increases/Decreases for the Week Ending December 27

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Below we provide a list of firms that raised their dividends during the week ending December 27. 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 Alico (ALCO): now $0.09 per share quarterly dividend, was $0.06. Axis Capital Holdings (AXS): now $0.41 per share quarterly dividend, was $0.40. ETFMG Alternative Harvest ETF (MJ): now $0.32 per share quarterly dividend, was $0.28. Mesa Royalty Trust (MTR): now $0.063615630 per share monthly dividend, was $0.036724557. Riverview Bancorp (RVSB): now $0.05 per share quarterly dividend, was $0.04. Seagate Technology (STX): now $0.65 per share quarterly … Read more

5 Things We Learned in 2019

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5 Things We Learned in 2019      “The further a society drifts from the truth, the more it will hate those that speak it.” — George Orwell By Brian Nelson, CFA    I’m looking at the beautiful Smoky Mountains in Tennessee as I’m writing this piece. I hope that you and yours are having a wonderful holiday season with family and friends. I wanted to share with you a few things that I think investors learned during 2019. Before I do, however, you’re probably wondering why I decided to lead in with this particular quote from Orwell. — — The quote, in some ways, is a reflection of how I think many approach truth in finance. Maybe they don’t … Read more

General Mills’ Pet Segment Performs Well

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Image Source: General Mills Inc – Second Quarter Fiscal 2020 Earnings IR Presentation By Callum Turcan On December 18, General Mills Inc (GIS) reported second quarter results for its fiscal 2020 (period ended November 24, 2019), which saw shares of GIS rise by almost 2% during normal trading hours that day as investors were excited over its strong performance of its pet food sales. Please note General Mills completed its $8.0 billion all-cash acquisition of Blue Buffalo Pet Products Inc in April 2018, and investors have been eagerly awaiting the revenue growth stimulus that deal was projected to generate. Shares of GIS are trading near the very top of our fair value range estimate and yield 3.7% as of this … Read more

Our Reports on Stocks in the Specialty Retailers Industry

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Images Source: Mike Mozart (Home Depot, Lowes) Structure of the Specialty Retailers Industry The specialty retail segment is fragmented, highly competitive, and economically-sensitive. The group covers a broad array of businesses and is dominated by retailers with large brick-and-mortar store footprints. Though some constituents may be insulated from e-commerce competition, others risk obsolescence as product distribution moves to digital means, and online retailers offer lower prices for identical goods and services. We’re fairly neutral on the structure of the industry, though some constituents will inevitably face secular and permanent declines. For coverage of firms in the Specialty Retailers Industry, please click here. 

Devon Energy Completes High-Grading Process, Free Cash Flows Remain Elusive

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Image Shown: An overview of Devon Energy Corporation’s remaining asset base, which consists of upstream oil and gas operations spread across four major unconventional plays in the US. Image Source: Devon Energy Corporation – December 2019 IR Presentation By Callum Turcan Times are tough in the oil & gas patch, especially for upstream producers of raw energy resources like Devon Energy Corporation (DVN). Not only are global oil prices low, which drags down natural gas liquids pricing for products like propane and butane, but North American natural gas supplies are trading at rock-bottom prices as well. Devon Energy has attempted to cope by divesting less economical assets and shifting all of its focus towards its best well locations, a process … Read more

Our Reports on Stocks in the Leisure Industry

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Image Source: Hasbro Structure of the Leisure Industry The leisure industry is composed of firms that span the cruise line business to those that make toys and children’s products. The cruise business has grown significantly in recent years, but still remains relatively small compared to the overall vacation industry (including land-based destinations). Competition among toy companies is intensifying due to recent trends toward shorter toy life cycles, the increasing use of technology in toys, and the proliferation of electronic consumer products and video games. All industry participants compete for consumer discretionary income. We’re neutral on the structure of the group. For our coverage of firms in the Leisure industry, please click here.