Member Articles

Teva’s ~7x P/E Multiple – Earnings Insight

by

Image Source: Teva Let’s cover some ground on Teva Pharma’s (TEVA) third-quarter report. By Brian Nelson, CFA What management said: “This has been a year of transition for Teva, underscored this quarter by the close of our strategic acquisition of Actavis Generics, which had significant contribution to our results. Actavis will continue to contribute in a meaningful way to the future growth of our generics business through the strengthened R&D capabilities and complementary pipeline and portfolio, and enhance our leadership in an increasingly evolving industry,” stated Erez Vigodman, Teva’s President and CEO. “We were also pleased to report this quarter that we have successfully completed the second pivotal phase three study for SD-809 for tardive dyskinesia and plan to submit … Read more

Hit or Miss in the Video Gaming Entertainment Industry

by

The Valuentum analyst team talks the latest and greatest trends in the video game entertainment industry from tried-and-true titles to the financial positions of the largest players to retail big box and beyond. ~9 mins. Kris Rosemann: Welcome to Valuentum’s podcast. I’m Kris Rosemann and joining us today is Mr. Chris Araos. Chris, you have a strong background as an observer of trends in the video game entertainment industry. How would you say the world of gaming is shaping up these days? Chris Araos: Well, Kris — a lot has changed in video gaming in just the past five years thanks to the emergence of more-advanced mobile phones, which are just great devices to play games on. Unlike PCs or … Read more

Earnings Insight – Cisco

by

Image Source: Cisco Let’s cover some ground on Cisco’s (CSCO) calendar third-quarter report, its first quarter of fiscal 2017. By Brian Nelson, CFA What management said: “We had a good quarter despite a challenging global business environment and we performed well in our priority areas,” said Chuck Robbins, CEO, Cisco. “We are leading our customers in their digital transition by providing them with highly secure, automated, and intelligent solutions in the ways they want to consume them. Our innovation pipeline is robust and we are well positioned for the future.” “We executed well in Q1 delivering profitable growth, and saw strong adoption of our subscription-based and software offerings as we transition our business to a more recurring revenue model,” said … Read more

Can Marijuana Stocks Burn Your Portfolio?

by

The Valuentum analyst team walks through changes in the marijuana regulatory landscape, the plethora of risks speculators face while dabbling in marijuana stocks, and the hopes that some might be long-term winners. ~8 mins. If you cannot view the podcast below, please view the transcript that follows or select the link here. Tickerized for stocks associated with the marijuana industry. Brian Nelson, CFA: Can marijuana stocks burn your portfolio? This is Brian Nelson for Valuentum Securities and joining me for today is Mr. Kris Rosemann and Mr. Chris Araos, and we are going to talk all about marijuana stocks. Mr. Kris Roseman would you like to take us through some of the dynamics that you are seeing across the industry? … Read more

Pharma, Biotech and How to Consider Investing In It

by

The Valuentum analyst team digs deep into recent trends in big pharma and biotech from the lofty pricing of drugs to political and competitive pressures to ETF considerations and beyond. ~10 mins. If you cannot view the podcast below, please view the transcript below or select the link here. Tickerized for holdings in the XLV and IBB. Brian Nelson, CFA Gilead’s (GILD) hepatitis C regimen, almost a hundred thousand dollars. Vertex’s (VRTX) cystic fibrosis drug — hundreds of thousands of dollars per year. Have the drug companies lost their mind? This is Brian Nelson from Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos — and we are going to talk everything healthcare, biotech… Mr. … Read more

Opinion: China-US Trade Augmented, Not Paralyzed Under Trump

by

Image Source: Fuzzy Gerdes By Brian Nelson, CFA “(Trump’s) tough rhetoric may just be setting the negotiations table with China (and Mexico, too), and Negotiations 101 says you start far away from the middle, and then you compromise to get what you truly want.” Nobody wins from a trade war, and business tycoon and President-elect Donald Trump knows this. It’s Business 101. Many believe, including us, that imposing steep tariffs on imports from China (MCHI, EWH, FXI) had been merely campaign rhetoric to win over votes, but many market participants are still positioning themselves for some degree of fallout nonetheless. China itself is not taking chances either. The country’s state-backed newspaper Global Times fired a shot across the bow November … Read more

Berkshire Hathaway Hits All-Time Highs

by

“Buffett did not become the third wealthiest person on the planet via exposure to the broader market.” By Kris Rosemann We added a 5% position in Warren Buffett’s Berkshire Hathaway (BRK.B) in the Best Ideas Newsletter portfolio in April of this year at ~$146 per share with the idea of gaining exposure to high quality businesses in an overheated market, “Alerts: Adding More High-Quality Exposure.” The idea has worked out as planned, as Berkshire Hathaway has been a relatively stable holding in the Best Ideas Newsletter portfolio in a time of uncertainty in the broader market before breaking out to all-time highs following a solid third-quarter report, released November 4, and a business-friendly Presidential election. We continue to be fans … Read more

Podcast: Microsoft — Still One of Our Favorites

by

The Valuentum analyst team talks about the financial strength of Microsoft, its deal with LinkedIn, the possibility of a winner’s curse, its growing cloud business, and a setback with the Surface. ~6 mins. If you cannot view the video, please view the transcript below or select the link here. Tickerized for Microsoft and Salesforce. Brian Nelson, CFA This is Brian Nelson for Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos. Today, we would like to talk about Microsoft (MSFT). We’ve been very very skeptical of its deal with LinkedIn (LNKD) as of late and I think to help us walk through some of our concerns but also the possible benefits of a tie-up with … Read more

VBI Case Study — Priceline’s 3Q Earnings Insight

by

Let’s take a look at Best Idea Newsletter holding Priceline’s (PCLN) third quarter 2016 report, released November 7. Image Source: Priceline What management said: “The Priceline Group brands executed well during our peak summer travel season,” said Jeffery H. Boyd, Chairman and Interim Chief Executive Officer of The Priceline Group. “Globally, our accommodation business booked 150 million room nights in the 3rd quarter, up 29% over the same period last year. The acceleration in room night growth demonstrates the favorable market in which we operate as well as the value of our diverse global platform.” Shares are breaking out… The scoop: Priceline executed fantastically in its peak summer travel season, turning in 25% gross travel bookings growth in the third quarter of … Read more

Podcast: REITs, Interest Rates and Beyond!

by

The Valuentum analyst team talks REITs and the reasons why REIT investors should pay close attention to changes in Treasury rates. Various secular themes across the data center, healthcare, office, and mall REITs are discussed, and an explanation for the sector’s systematically poor raw, unadjusted Dividend Cushion ratios is covered. ~8 mins. Tickerized for various ETFs and the holdings in the VNQ. Brian Nelson, CFA: In September, REITs were officially broken out from the financial sector to their own sector of the S&P 500 — some 30 or so stocks with $600 billion in market capitalization, or about 3% of the S&P 500. Could this change have marked a peak in performance for equity and mortgage REIT stocks? Are investors … Read more