Valuentum Exclusive Analysis for the Discerning Investor

Nvidia Bets Big on Data Centers
Image Source: Nvidia Corporation – 2020 Annual Meeting of Stockholders Presentation. On August 19, Nvidia Corp reported second quarter fiscal 2021 earnings (period ended July 26, 2020) that beat consensus top-line estimates (on a GAAP basis) and consensus bottom-line estimates (on a non-GAAP basis, as its GAAP earnings were slightly lower than consensus estimates). Nvidia has several things going for it including a pristine balance sheet (meaning a net cash position), a data center business that is growing at a brisk pace (which we will cover in this note), a high quality cash flow profile (relatively low capital expenditure requirements to generate meaningful revenues), and its outlook is supported by secular growth tailwinds, particularly as it relates to demand from cloud computing providers. Shares of NVDA yield a negligible ~0.1% as of this writing.

Jun 26, 2020

Update on Dell Technologies and VMware
Image Source: VMware Inc – First Quarter Fiscal 2021 IR Earnings Presentation. Dell Technologies and VMware Inc are back in the news as the WSJ recently reported the former is considering spinning off its enormous equity stake in the latter. Back in September 2016, Dell completed its ~$67 billion cash-and-stock acquisition of EMC which gave Dell a controlling equity stake in VMware (and a mountain of net debt in the process). As of January 31, 2020, Dell owned approximately 80.9% of VMware’s outstanding equity. Dell can spin off its equity stake in VMware tax-free after a five-year waiting period, though Dell would need to wait until September 2021 before that could occur (given when the EMC deal closed).

Jun 1, 2020

June Dividend Growth Newsletter & Intrinsic Value Investing
"But how, you will ask, does one decide what [stocks are] "attractive"? Most analysts feel they must choose between two approaches customarily thought to be in opposition: "value" and "growth,"...We view that as fuzzy thinking...Growth is always a component of value [and] the very term "value investing" is redundant." -- Warren Buffett, Berkshire Hathaway annual report, 1992

Dec 24, 2019

Question: Arbitrage Opportunity in Dell/VMware?
Image Source: Mike Cohen. Member Question: It seems that there could be an arbitrage opportunity with Dell seemingly being valued at a lower amount than the stake Dell owns in VMware, (i.e. long Dell, short equivalent number of shares VMware). Any thoughts from your side?

Nov 22, 2019

Dividend Growth Newsletter Portfolio Holding Microsoft Secures a Big Win
Image Shown: Shares of Microsoft Corporation continue to make new highs and we think MSFT may test the upper end of our fair value range given the company’s improving growth outlook. Shares of Dividend Growth Newsletter portfolio holding Microsoft continue to climb higher. We think shares could test the upper end of our fair value estimate range, which currently sits at $166 per share, comfortably above where Microsoft’s stock is trading at as of this writing (~$149 per share). Recent events have augmented the company’s free cash flow potential, with an eye towards the Joint Enterprise Defense Infrastructure (‘JEDI’) contract win. Shares of MSFT yield ~1.4% as of this writing.

Oct 23, 2019

Our Reports on Stocks in the Computer Hardware Industry
We've optimized our technology coverage.

Oct 12, 2015

EMC Will Go Private in Giant Tech Deal
Privately-held Dell has announced the acquisition of EMC in the largest “tech-only” deal in history.

Dec 9, 2013

PC Shipments Expected To Stabilize
We like the stabilizing outlook for PC shipments and view it as a positive for the entire PC supply chain.

Aug 22, 2013

Guidance Drives Slump at HP
Though HP's results were mostly in-line with expectations, the Street is none too pleased with HP’s warning that revenue may not grow in 2014.

Aug 16, 2013

As the Battle Continues, Dell Still Exists
Investors continue to battle for control over Dell, but let’s not forget it continues to be an operating company.

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