Valuentum Exclusive Analysis for the Discerning Investor

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Jan 8, 2018

Mutual Fund Tragedy, ROE, and the Time Horizon
Comparisons between growth versus value stocks may never go away, but President of Investment Research Brian Nelson explains why you should know better than to think stocks can easily be divided up as such. He talks about this, as well as the pitfalls of ROE (return on equity) and how to think about the time horizon. Running time: ~10 minutes.

Jan 5, 2018

Admit It: You Know Nothing About the Dividend
President of Investment Research Brian Nelson talks about how the concept of a dividend is completely miscontrued due to societal and cultural reasons, but he also explains why he likes dividends. Warning: He's going to bust out Monopoly pieces. You don't want to miss this! Running time: ~15 minutes.

Dec 24, 2017

I Love Dividends But the Dividend Discount Model is DEAD!
President of Investment Research Brian Nelson gives a plethora of reasons why the dividend discount model is dead and expresses his worries about how it continues to be used academically and professionally. Also included is a discussion about why the weighted average cost of capital, or the WACC, is used in the enterprise free cash flow valuation process, or the free cash flow to the firm process. Running time: ~13 minutes.

Dec 19, 2017

Video: Quants! You're NOT Measuring VALUE and Nelson's Theory of Universal Value
President of Investment Research Brian Nelson defines the concept of universal value and shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, business-model related analysis. Value does not exist in respective process vacuums! Value is universal. Find out why. Running time: ~10 minutes.

Nov 26, 2017

How to Think About Corporate Tax Reform
Image Source: DonkeyHotey. Donald Trump and team are working hard to “Make America Great Again,” and lowering tax rates on corporations is a key initiative. Nobody knows for sure whether such efforts will come to fruition, but knowing how to use our research and understanding the fair value estimate range puts you ahead of the crowd, if it hasn’t already.

Nov 19, 2017

Nelson on Bogle, Part I
Image shown: An example illustrating how the dividend is a component of capital appreciation that otherwise would have been achieved had the dividend not been paid. Such a situation applies to both regular and special dividends. "The kind of commentary that makes broad generalizations about expectations of future returns is exactly why people are so eager to get into passive investment strategies. Since the 1920s, it seems as though the individual investor has assumed the stock market was rigged or impossible for average Joes to figure out, but instead of the "I'll get it next time" mentality that was present leading to the crash of '29, individual investors have "evolved" to the point that now the idea is if you can't beat the market, just buy the whole thing. Leaders like Bogle continue to take tremendous shortcuts in explaining forecasts, leaving the average investor like a student trying to copy math homework off a peer that didn't show his/her work. When the test comes around, and the problem is a bit different, the copier is up a creek." -- The Valuentum Team

Oct 23, 2017

Earnings Roundup: Unilever, Procter & Gamble, Kimberly-Clark
We love the business models of consumer staples, but recent fundamental performance hasn’t been great, and valuations are a bit stretched. Unilever is blaming natural disasters in the US for its underlying sales growth shortfalls, Procter & Gamble has to deliver now that it defeated Nelson Peltz, and Kimberly-Clark’s meager top-line expansion may not support its valuation. A good business does not always make a good stock.

Aug 3, 2017

Video: Explaining the Valuentum Buying Index
The Valuentum Buying Index (VBI) stands on the shoulders of giants in finance in uncovering investment ideas.

Aug 1, 2017

Coca-Cola, Pepsi, Kimberly-Clark: Great Businesses But Lofty Earnings Multiples and Net Debt Positions
We love the business models of some of the most well-known consumer-staples equities, namely Coca-Cola, Pepsi, and Kimberly-Clark, but lofty earnings multiples and net debt positions complicate their investment prospects. Little to no top line growth only further muddies the picture.

Jun 14, 2017

Opinion: Is Amazon Prepared to Tackle the Pharmacy Market?
The meteoric rise of Amazon, both with respect to the breadth of its business operations and stock price, continues. On news of the rumor of its potential entry into the pharmacy market, entities speculated that may feel an impact immediately sold off. Though it’s much too early to estimate the extent of any impact Amazon’s entrance into the pharmacy market may bring, let’s take look at potential implications, courtesy of healthcare and biotech contributor Alexander J. Poulos.