Member Articles

Oracle Gobbling Up Its Shares; Cracker Barrel Hit By Weak Traffic

by

Image Source: Mike Mozart Simulated Dividend Growth Newsletter portfolio ideas Oracle and Cracker Barrel both issued less than compelling forward-looking guidance in their most recent fiscal quarter reports. Oracle continues to throw off robust levels of free cash flow that is being used to fund significant levels of share buybacks, but Cracker Barrel may be forced to stop serving up special dividends that have become common in recent years. By Kris Rosemann Oracle Throwing off Free Cash Flow, Gobbling Up Shares Simulated Dividend Growth Newsletter portfolio idea Oracle’s (ORCL) fiscal first quarter report, released September 17, was met with a mixed reaction as management’s guidance for its fiscal second quarter left a bit to be desired. Total revenue grew 2% … Read more

Economic Data Recap in 3 Minutes

by

Image Source: CreditDebitPro via Flickr There’s a lot happening to impact the markets these days. Let’s cover some key economic data, stocks that may see a fundamental boost from Hurricane Florence, and we’ll reiterate our view that trade tantrums between the US and China will likely not amount to much of a negative impact on global economic activity, despite huge headline numbers. By Kris Rosemann Famed investor Peter Lynch has been attributed with the quote, “If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes,” so let’s take a quick look at some recent economic data releases and what they might mean for the markets moving forward. Most market observers continue to expect the … Read more

Galapagos’ Filgotinib Scores Major Win for Gilead Sciences

by

Image source: Gilead second quarter earnings presentation Filgotinib posted stellar data in a recent phase 3 trial for the treatment of Rheumatoid Arthritis. In light of the data, we feel Galapagos and, by extension of their commercial partnership, Gilead Sciences possess a best in class molecule in immunology. By Alexander J. Poulos Key Takeaways Galapagos, which is ~15%-owned by Gilead Sciences, released stellar data of its lead compound Filgotinib.  Filgotinib again demonstrated a lack of clotting, which has torpedoed other competing promising molecules. In our opinion, Filgotinib is well on its way to a best in class profile which augurs well for Galapagos and its commercial partner Gilead Sciences. Though we continue to be cautious about any pharmaceutical/biotech idea, we … Read more

Dividend Growth: Capital Preservation Remains Key

by

Image Shown: Since mid-June 2015, the performance of an ETF tracking the midstream MLP industry (AMLP) has collapsed while the performance of an ETF tracking the S&P 500 (SPY) industry has surged. By The Valuentum Team We think one of the things we do better than most is in our work supporting capital preservation. We have a knack for parsing out risk and explaining that risk clearly in advance to our members. A lot of investors tend to be buy-and-hold as they reinvest dividends and capture compounding over time, and this is wonderful. But it is okay to change your mind, too. It is okay to factor in new information and to be somewhat active in your equity portfolio construction, … Read more

Dividend Increases/Decreases for the Week Ending September 14

by

Below we provide a list of firms that raised their dividends during the week ending September 14. 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 Apollo Senior Floating Rate Fund (AFT): now $0.098 per share monthly dividend, was $0.096. Brady (BRC): now $0.21 per share quarterly dividend, was $0.2075. Clough Global Allocation Fund (GLV): now $0.1141 per share monthly dividend, was $0.1127. Clough Global Equity Fund (GLQ): now $0.1291 per share monthly dividend, was $0.1278. Clough Global Opportunities Fund (GLO): now $0.1012 per share monthly dividend, was $0.1007. DDR (DDR): now … Read more

In The News: Hurricane Florence, Tariffs and Capital Spending Delays, Kroger and Big Tobacco on the Move

by

  Let’s take a look at some of the top stories across the market, including the impact tariffs are having on capital spending plans and bottom lines and recent developments in big tobacco. By Kris Rosemann As Hurricane Florence bears down on the East Coast of the US, risk modeling firm RMS believes US insurers should be bracing for $20 billion in losses. More than 1 million people have been ordered to evacuate the area, and the threat of a combination of storm surge, wind, and inland flooding may prove to be significant as Duke Energy (DUK) estimates 1-3 million customers may be left without power across North and South Carolina. Privately-held Liberty Mutual Insurance and Nationwide Mutual Insurance are … Read more

Our Reports on Stocks in the Radio Broadcasting Space

by

Image Source: Pandora Structure of the Broadcasting (Radio) Industry Firms in the broadcasting (radio) industry provide satellite radio services, Internet radio services, and operate commercial radio stations. Constituents compete for both listeners and advertisers. Satellite radio providers generate revenue via subscription fees, primarily distribute radios through the sale/lease of new automobiles, and face competition from free traditional AM/FM radio and online-only providers, which make digital streams available through the Internet for free. The industry is characterized by rapid change, and competition will keep any outsize profits to a minimum. We don’t like the structure of the group. We’ve dropped coverage of this industry. Our final piece can be found here. << Our Dividend Reports —– Valuentum members have access to … Read more

In the News: Brexit, Unilever Simplification, and Geopolitical Uncertainty

by

Uncertainty related to Brexit continues to loom over the outlooks of multinational companies operating in Europe, and other geopolitical issues are making their presence known on global markets as well. By Kris Rosemann The British pound hit five-week highs against the dollar on the morning of September 11 as EU chief negotiator Michel Barnier said it was “realistic” to think the United Kingdom and European Union will reach a Brexit (EWU) deal within two months. The UK is scheduled to leave the EU on March 29, 2019, and Barnier’s comments have helped ease some concerns that the UK would leave the bloc without a formal trading agreement. President Trump’s silence regarding tariffs on the region has also fostered some cautious optimism, but … Read more

Our Report on Stocks in the Electronic Components Industry

by

Image Source: Mike Mozart Structure of the Electronic Suppliers Industry The electronic suppliers industry is composed of firms that provide services to companies that use electronic components. The industry is very cyclical, subject to rapid changes in technology, and highly competitive (from both rivals and customers). Participants generally do not have proprietary manufacturing processes, and performance is tied to the success of their customers’ products in the market. Significant pricing pressure and shifts in market share are common, and component supply shortages and rising commodity costs can pressure margins. We don’t like the structure of the group. Please select the image below to download the report on utilities in our coverage. It is pdf document. << Our Dividend Reports