Member Articles

ICYMI — Video: Will Hasty Policy Facilitate the Next Leg Down, or Do We Have It Coming Anyway?

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President of Investment Research and award-winning author of Value Trap: Theory of Universal Valuation Brian Nelson explains how US policymakers are stuck between a rock and a hard place, and how the market may be factoring in too high of a probability of a return to normalcy before 2021. This and more in the latest video report. Summary Make sure you review Value Trap on Amazon. Do so here. We think those that bought equities near the bottom of this swoon may be looking to take profits at present levels. The market is currently reflecting an 80%-85% probability of a return to normalcy before 2021, which we believe is too high at this time. Our main concern is that government … Read more

Jernigan Capital Fundamentally Transforms Its Business Model

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Image Source: Jernigan Capital Inc – March 2020 IR Presentation By Callum Turcan Jernigan Capital Inc (JCAP) is now an internally managed real estate investment trust (‘REIT’) that invests in self-storage properties, either directly or by providing funding for developers that build such properties. Shares of JCAP currently yield ~7.8% (as of this writing) in the wake of Jernigan Capital’s stock price selling off aggressively this year, as investor concerns mounted due to the ongoing coronavirus (‘COVID-19’) pandemic. Jernigan Capital is in the midst of a major shift in its business model and overall corporate strategy, and we like the changes management is in the process of making. While these are still early days, plenty is already known about this … Read more

Dividend Increases/Decreases for the Week Ending May 15

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Below we provide a list of firms that raised their dividends during the week ending May 15. 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 AAON (AAON): now $0.19 per share semi-annual dividend, was $0.16. Cardinal Health (CAH): now $0.4859 per share quarterly dividend, was $0.4811. Farmers & Merchants Bancorp (FMCB): now $7.25 per share semi-annual dividend, was $7.15. GDL Fund (GDL): now $0.12 per share quarterly dividend, was $0.10. Israel Chemicals (ICL): now $0.023 per share quarterly dividend, was $0.018. iStar (STAR): now $0.11 per share quarterly dividend, was $0.10. … Read more

Ameresco Targets Green Growth by Offering Customers Cost Savings

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Image Source: Ameresco Inc – May 2020 IR Presentation By Callum Turcan We are going to cover Ameresco Inc (AMRC) in this article. Given the company’s more novel business strategy, we will start off by going over its operations before digging into its financials. Ameresco’s financials have held up well so far during the first half of 2020 in the face of the ongoing coronavirus (‘COVID-19’) pandemic, though we caution its financial statements can be a messy read. Operations Overview Ameresco offers a slate of comprehensive energy services that primarily involve designing, engineering, and installing projects at its client’s operations. That includes upgrading the heating, cooling, ventilation, and lighting systems of its client’s major facilities to improve efficiency (with an … Read more

Dividend Increases/Decreases for the Week December 4

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Below we provide a list of firms that raised their dividends during the week ending December 4. 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 Absecon Bancorp (ASCN): now $2.00 per share annual dividend. Agree Realty (ADC): now $0.62 per share quarterly dividend, was $0.60. American Tower (AMT); now $1.21 per share quarterly dividend, was $1.14. Angel Oak Financial Strategies Income Term (FINS): now $0.1085 per share monthly dividend, was $0.1010. Axis Capital Holdings (AXS): now $0.42 per share quarterly dividend, was $0.41. Bassett Furniture (BSET): now $0.25 per share special … Read more

Qualcomm’s Growth Trajectory Is Impressive and Supported by Numerous Secular Trends

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Image Source: Qualcomm Inc – 2019 Analyst Day Presentation By Callum Turcan There is a lot to like about Qualcomm Inc (QCOM), especially after the company reached a truce with Apple Inc (AAPL) in 2019 and resolved a dispute with China’s Huawei in 2020. Both agreements involved Qualcomm signing long-term licensing deals with those companies. The firm has a dominant position in cellular 5G modem and radio frequency (‘RF’) technology, and we don’t expect this lucrative industry position to change anytime soon. Qualcomm is a holding in Valuentum’s Dividend Growth Newsletter portfolio thanks to its strong competitive advantages, healthy balance sheet, asset-light operations, considerable free cash flow generating capacity, and of course, its long-term dividend growth potential. Qualcomm’s shares yield ~1.8% at … Read more

Cisco Systems Expects Revenue Growth Will Resume This Fiscal Quarter

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Image Source: Cisco Systems Inc – Second Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On February 9, Cisco Systems Inc (CSCO) reported second quarter earnings for fiscal 2021 (period ended January 23, 2021) that beat consensus top- and bottom-line estimates. Additionally, Cisco Systems raised its quarterly dividend by about 3% on a sequential basis in conjunction with its earnings report. We include Cisco Systems in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to like exposure to the name. As of this writing, shares of CSCO yield ~3.1% on a forward-looking basis, and our fair value estimate stands at $51 per share of Cisco Systems. Earnings Overview Cisco Systems’ GAAP revenues were broadly … Read more

Dividend Increases/Decreases for the Week March 5

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Below we provide a list of firms that raised their dividends during the week ending March 5. 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 Aaron’s (AAN): now $0.10 per share quarterly dividend, was $0.04. BHP (BHP): now $2.02/ADS interim dividend, was $1.10/ADS final dividend. Big 5 Sporting Goods (BGFV): now $0.15 per share quarterly dividend, was $0.10. Canadian Natural Resources (CNQ): now CAD 0.47 per share quarterly dividend, was CAD 0.42. Cargojet (CGJTF): now C$0.26 per share quarterly dividend, C$0.23. CMC Materials (CCMP): now $0.46 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week June 18

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Below we provide a list of firms that raised their dividends during the week ending June 18. 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 AG Mortgage Investment Trust (MITT): now $0.07 per share quarterly dividend, was $0.06. America First Multifamily Investors (ATAX): now $0.11 per share quarterly dividend, was $0.09. Benchmark Electronics (BHE): now $0.165 per share quarterly dividend, was $0.16. Calamos Long/Short Equity & Dynamic Income Trust (CPZ): now $0.14 per share monthly dividend, was $0.13. Canadian Banc Corp (CNDCF): now 0.1017 per share monthly dividend, was CAD 0.0942. … Read more

Raising Our Fair Value Estimate on Berkshire Hathaway, Our Thoughts on the Insurance Industry

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Image Source: AIG Competitive Structure of the Insurance Industry Constituents in the insurance industry earn revenues primarily from insurance premiums, policy fees from life insurance/investment products, and income from investments. Operating expenses consist of policyholder benefits and claims incurred, interest credited to policyholders, commissions and other costs of servicing products, as well as general business expenses. An insurer’s profitability is dependent on its ability to price and manage risk on insurance and annuity products, to manage its portfolio of investments effectively, and to control costs through expense discipline. The insurance industry is highly competitive, with rivals numbering in the thousands–including stock companies, specialty insurance organizations, life insurers, mutual companies, other underwriting firms, and banks. Though risk-acceptance criteria, product pricing, and … Read more