Valuentum Exclusive Analysis for the Discerning Investor

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Dec 4, 2022

Apple iPhone Supply Disruptions Not Likely to Hurt Markets with Overall Holiday Sales Reportedly Strong
Image: Holiday sales are expected to expand ~2.5% in 2022 over very strong growth in 2021 and 2020. Image Source: Adobe. Apple's sales of the iPhone 14 Pro and iPhone 14 Pro Max will come in lower than expected this holiday season due to labor unrest in Zhengzhou, but holiday sales for 2022 overall look fairly solid with Adobe Analytics estimating 2.5% growth over 2021, which, itself, was a fantastic year. A prior warning about holiday sales from Target Corp. appears to have been overblown given the sales strength witnessed during Black Friday and Cyber Monday across the retail landscape this year. It may be too early to say that the markets have definitely bottomed as economic data remains inconclusive, but holiday sales so far in 2022 and an overall resilient job market are giving investors something to cheer about in what has turned into an otherwise loathsome year.

Jan 19, 2022

Microsoft Is Buying Activision On Way to Becoming Video Game Giant
Image Shown: Microsoft Corporation is buying Activision Blizzard Inc, the largest buyout for a US tech firm ever. Image Source: Microsoft Corporation – January 2022 IR Presentation covering its acquisition of Activision Blizzard Inc. On January 18, Microsoft Corp made history by making an all-cash offer to purchase Activision Blizzard Inc for $95 per share. The boards of both companies have already approved the deal. Inclusive of Activision’s net cash position, the deal is worth $68.7 billion which makes it the largest buyout ever for a US tech firm according to CNBC. This deal is expected to close in fiscal 2023 (Microsoft’s fiscal year ends in June). Once it closes, assuming the deal pasts antitrust muster, Microsoft views the acquisition as being accretive to its non-GAAP earnings per share. Our fair value estimate of Activision will be updated to reflect a modest discount to the buyout price to incorporate the small probability the deal won't be completed due to antitrust concerns.

Jul 28, 2020

Earnings Brief: SAM, MAT, TOT, HON, AXP
Image Source: Boston Beer. CEO Dave Burwick noted in Boston Beer’s second-quarter press release: “The growth of the Truly brand, led by Truly Hard Lemonade, has accelerated and continues to grow beyond our expectations. Since early January, Truly has grown its velocity and its market share sequentially while other national, regional and local hard seltzer brands have entered the category. Truly is the only hard seltzer, not introduced earlier this year, to grow its share during 2020.” We’re impressed, but still taking a cautious view on SAM’s shares.

Jun 13, 2018

Private Equity Likely Interested in GameStop As Netflix Shocks Gaming Industry
Netflix may have taken the initial steps to enter the video-gaming market. Even as the digital streaming of games may have already signaled the death knell of GameStop’s lucrative physical used-game business, that Netflix may be moving into video games may further truncate not only GameStop’s longevity, but also have ramifications across the entire video-gaming landscape. Private equity may be interested in GameStop, nonetheless.

Dec 1, 2017

Shopping for Income Within Retail in a Digital World
Image Source: Mike Mozart. The 2017 holiday shopping season has shown that e-commerce has never been stronger and it will only continue to grow. But there is still potential for income generation among more traditional retailers. Investors must be tremendously discerning in the retail area, however, as margin, and ultimately free cash flow, pressures remain prevalent. We like Walmart, Target, Costco as income ideas in the broader retail space, but TJX Companies and Best Buy may be worth a look, too. We're avoiding the department stores and teen retail like the plague, regardless of their Dividend Cushion ratios.

Nov 17, 2016

Hit or Miss in the Video Gaming Entertainment Industry
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.