Member Articles

Vodafone’s Dividend Cut, Alibaba’s Resilience, More Reports

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Vodafone’s Dividend Cut, Alibaba’s Resilience, More Reports In alphabetical order by company name: A, BABA, PLCE, GES, M, NSANY, RL, TLRY, VOD — Good morning, — Still buying stocks immediately as they fall and on the way down? There may be no logical basis for doing so. Here’s an excerpt from Value Trap: Theory of Universal Valuation.  — Image: Excerpt from Value Trap, page 241 — Order your copy here.  — The market must eventually agree with you for your idea to work out, so why not wait until the stock starts to move higher first. Waiting a few weeks or a few months/quarters to see if the stock eventually settles and technical/momentum indicators start to improve is vital in helping … Read more

Where Are the Safe Havens?

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“We believe that staying diversified as in holding a broad swath of ideas as in either the Best Ideas Newsletter portfolio or Dividend Growth Newsletter portfolio as the equity portion of one’s allocation makes a lot of sense in any environment…High yield dividend investing may become more and more popular in coming years as rates across the globe approach 0%, and the amount of negative-yielding debt proliferates.” — Brian Nelson, CFA By The Valuentum Team The Federal Reserve is weighing all its options as it assesses how to balance global economic weakness and strong performance in the US, pressure from the White House to aggressively cut rates, and a 30-year yield that puts the federal funds rate at the highest … Read more

Analyzing Chevron and Important Updates in the Global Energy Industry

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Image Source: Chevron Corporation – November 2019 IR Presentation Summary In this note, let’s cover the current state of raw energy resource prices in North America and around the world. We’ll analyze Chevron’s 2020 capital investment and exploration budget, in particular, and the global energy industry at-large. Shares of CVX appear generously valued as of this writing given the numerous headwinds facing the energy industry going forward. By Callum Turcan The world of oil and gas equities has been battling with persistently low raw energy resource prices for some time now. Back in the middle of 2014, a barrel of light sweet crude delivered to Cushing, Oklahoma (home of the West Texas Intermediate, or WTI, benchmark), would fetch over $100. Now … Read more

Why Natural Gas Prices are So Low and Will Likely Remain So for Some Time

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Dividend Increases/Decreases for the Week Ending February 28

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Below we provide a list of firms that raised their dividends during the week ending February 28. 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 Albemarle (ALB): now $0.385 per share quarterly dividend, was $0.3675. Allison Transmission Holdings (ALSN): now $0.17 per share quarterly dividend, was $0.15. Anheuser-Busch Inbev (BUD): now EUR 1.00 per share semi-annual dividend, was EUR 0.80. Assured Guaranty (AGO): now $0.20 per share quarterly dividend, was $0.18. Barings BDC (BBDC): now $0.16 per share quarterly dividend, was $0.15. Best Buy (BBY): now $0.55 per share quarterly dividend, … Read more

Worst in Energy Not Over, Stay Away from Leveraged Enterprises, Seeds of Financial Crisis Sown?

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Image Shown: The energy and banking markets continue to be experiencing pain. Since we removed the Energy Select Sector SPDR (XLE) and Financial Select Sector SPDR (XLF) from the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio, the XLE has fallen more than 50% and the XLF has fallen 13%, while the SPY has held up roughly 2%. We continue to believe staying away from energy and financials/banks will be a source of significant alpha. These are challenging times. The oil price swoon has complicated an already-dire situation with COVID-19. We’re seeing cracks in the credit markets, and the European banking system is far from healthy. The US banks may face knock-on impacts from energy loan defaults and hold … Read more

Historic Oil Deal Reached

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Image Source: Chevron Corporation (CVX) – March 2020 Security Analyst Meeting Presentation By Callum Turcan Over the Easter holiday weekend, members from the Organization of Petroleum Exporting Countries (‘OPEC’), non-OPEC members that are part of the OPEC+ group (countries that in the recent past have joined forces with OPEC to curtail global oil supplies in a formal manner), and non-OPEC members outside of the OPEC+ group such as Brazil (EWZ), Canada (EWC), and the United States (SPY) came to an agreement to cut their collective oil output by north of 10 million barrels per day. Global oil and other raw energy resource prices (USO, BNO) have been simply demolished year-to-date due to a combination of demand destruction from the ongoing … Read more

American Express Carries Meaningful Credit Risk

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Image Source: American Express Company – First Quarter of 2020 Earnings IR Presentation By Callum Turcan At Valuentum, we are very bullish on the growth trajectory of high-quality payment processing, payment solutions, and financial technology firms. That’s why we include PayPal Holdings Inc (PYPL) and Visa Inc (V) as top-weighted holdings in our Best Ideas Newsletter portfolio. However, please note that what makes those firms appealing is the limited or lack of exposure to credit risk. Visa carries no credit risk and generates revenues through fees collected on transactions conducted with Visa-branded cards, and while PayPal possesses some credit risk, that risk is rather small relative to its overall business. Both firms enable investors to capitalize on the shift to … Read more

Dividend Increases/Decreases for the Week August 7

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Below we provide a list of firms that raised their dividends during the week ending August 8. 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 Atlantica Sustainable Infrastructure (AY): now $0.42 per share quarterly dividend, was $0.41. AudioCodes (AUDC): now $0.14 per share semi-annual dividend, was $0.13. Badger Meter (BMI): now $0.18 per share quarterly dividend, was $0.17. Brookfield Renewable (BEPC): now $0.434 per share quarterly dividend. Cable One (CABO): now $2.50 per share quarterly dividend, was $2.25. CAI International (CAI): now $0.25 per share quarterly dividend. Carlisle (CSL): now $0.525 … Read more