Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

Jan 28, 2020

Johnson & Johnson Closes Out Fiscal 2019 With a Strong Fourth Quarter Report and Promising Fiscal 2020 Guidance
Image Shown: A look at some of Johnson & Johnson’s best selling products. Image Source: Johnson & Johnson – Fourth Quarter Fiscal 2019 IR Presentation. Best Ideas Newsletter and Dividend Growth Newsletter portfolio holding Johnson & Johnson reported fourth quarter and full-year earnings for fiscal 2019 on January 22. We liked what we saw as the company proved its fiscal 2019 wasn’t as bad as first feared, and furthermore, that Johnson & Johnson’s outlook remains bright as indicated by management’s guidance for fiscal 2020.

Jan 28, 2020

Intel Roars Higher
Image Shown: Intel Corporation, a top weighted holding in our Dividend Growth Newsletter portfolio and a medium weighted holding in our Best Ideas Newsletter portfolio, posted a tremendous fourth quarter report for fiscal 2019 on January 23. Shares of INTC marched meaningfully higher on January 24. Image Source: Fourth Quarter Fiscal 2019 Earnings IR Presentation. A top weighted holding in our Dividend Growth Newsletter portfolio and medium weighted holding in our Best Ideas Newsletter, Intel Corp posted blowout earnings on January 23. Full year revenue for fiscal 2019 hit a record of $72.0 billion on a GAAP basis, up 2% year-over-year, while GAAP diluted EPS rose by 5% to $4.71 (on a non-GAAP basis, diluted EPS was up 6% year-over-year, hitting $4.87). Intel beat both top- and bottom-line consensus estimates and guided for a strong fiscal 2020. Shares of INTC now yield ~1.9% on a forward-looking basis as of this writing after management pushed through a 5% sequential dividend increase in conjunction with the record earnings report.

Jan 23, 2020

Why *NOW* Do You Care About Boeing’s Stock?
Image Source: Robert Sullivan. In no, way shape or form should you *now* be interested in Boeing’s stock. Let’s explain.

Jan 23, 2020

Why Natural Gas Prices are So Low and Will Likely Remain So for Some Time
Image Source: Cabot Oil & Gas Corporation – November 2019 IR Presentation. Domestic natural gas strip prices in the US are trading at rock bottom levels as of this writing, and we expect the pain will only continue. There are many reasons why natural gas prices in the US are quite low right now including surging associated production (gas supplies produced alongside oil, condensate, and natural gas liquids) from unconventional upstream plays where natural gas is viewed more so as a nuisance than a marketable product given the liquids-oriented economics of those plays, surging non-associated production (natural gas supplies are the only product) out of Appalachia over the past decade (the growth in natural gas production in Pennsylvania, Ohio, and West Virginia has been astounding due to the Marcellus and Utica shale plays), and the lack of the kind of serious weather-related demand this winter season (such as a very cold winter in North America, especially in the Midwest and East Coast) that can quickly drain flush storage facilities.

Jan 23, 2020

Resetting Your Mental Model
Image Source: affen ajlfe. Having the right mental model and using the right information can be the reason why you win or lose in investing.

Jan 22, 2020

Economic Commentary: Bank Earnings, US-China Phase One No Big Deal and More
Bloomberg recently reported that U.S. banks’ record-breaking earnings have likely peaked for this cycle. We’ll get the team’s thoughts on this, and we’ll also cover views on the corporate credit cycle, China GDP, and the US election cycle. We don’t think the US-China Phase One deal amounts to much, other than removing the uncertainty that it, itself, created.

Jan 22, 2020

Morgan Stanley Expecting Substantial Improvements
Image Source: Morgan Stanley Earnings Presentation. Morgan Stanley is guiding return on tangible equity to go from 12.9% this year to 13-15% in two years and to 15-17% in the longer term. Management was quite clear that they are using the assumption that the economy and markets move ahead at normal levels, meaning no severe recessions or booms. That said, if the company hits these goals, it will drive fundamentals ahead at a steady clip, requiring a reset higher in its valuation.

Jan 21, 2020

PPG Industries’ Latest Earnings Report Indicates Softer Industrial Activity Ahead
Image Shown: Capitalizing on the various lucrative opportunities the aerospace industry offers PPG Industries Inc underpins its long-term free cash flow trajectory. Image Source: PPG Industries – December 2019 IR Presentation. On January 16, maker of painting, coating, and specialty materials PPG Industries posted fourth quarter earnings for 2019. The firm has performed well in the aerospace and marine industries, and we emphasize its growing exposure to the aerospace industry underpins the strength of its free cash flow trajectory. That said, let's walk through PPG Industries' quarterly performance to get a feel for how broader industrial activity is trending and why economic softness may be looming.

Jan 21, 2020

Two Dividend Growth Newsletter Portfolio Holdings Get Ready to Report Earnings Later This Month
Two holdings in the Dividend Growth Newsletter portfolio, Johnson & Johnson and Microsoft Corporation, are getting ready to report earnings later this month.

Jan 21, 2020

Goldman Hit By Charge Related to 1MDB
Image Source: Goldman Sachs Earnings Presentation. Aside from dominating the global revenue pools for investment banking and trading, Goldman is doing other things right. The firm has rapidly gathered deposits in the US and UK over the past year, bringing in a lower cost of funds to help facilitate its balance sheet. Goldman has also built up Marcus, Apple Card, and the bank is in the process of growing its asset management business to better serve institutional clients.