Valuentum Exclusive Analysis for the Discerning Investor

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Sep 19, 2024

Brain Teaser - Reflexive versus Reflective
Image: Amy Leonard. Valuation multiples tend to trigger the reflexive side of our brain, and we process the multiples through anchoring. On the other hand, enterprise valuation, or the process required to answer the questions (in this article) correctly, shows that our reflexive process can be quite incorrect at times. In fact, cognitive biases such as anchoring can completely trip us up into missing out on truly undervalued companies that may have high P/E ratios while baiting us into value traps with low P/E ratios.

Aug 9, 2024

Paper: Value and Momentum Within Stocks, Too
Abstract: This paper strives to advance the field of finance in four ways: 1) it extends the theory of the “The Arithmetic of Active Management” to the investor level; 2) it addresses certain data problems of factor-based methods, namely with respect to value and book-to-market ratios, while introducing price-to-fair-value ratios in a factor-based approach; 3) it may lay the foundation for academic literature regarding the Valuentum, the value-timing, and ultra-momentum factors; and 4) it walks through the potential relative outperformance that may be harvested at the intersection of relevant, unique and compensated factors within individual stocks.

Jul 12, 2024

Fastenal’s Revenue Beat a Positive Read Through to the Broader Economy
Image: Fastenal’s second quarter results were a positive read through to the broader economy. On July 12, Fastenal Company reported mixed second quarter results where revenue modestly exceeded the consensus forecast, while the company’s GAAP earnings per share was in-line. For the first six months of 2024, net sales advanced 1.8%, while operating income fell 1.4% and net income dropped 0.5%. Diluted earnings per share of $1.03 for the first six months of the year was 0.7% lower than the mark achieved over the same period a year ago. Fastenal’s better-than-expected revenue performance is a positive read through to the broader economy.

Jun 10, 2024

Update: Frequently Asked Questions About Valuentum Securities, Inc.
Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports and dividend reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. We address a number of questions from both subscribers and visitors to our site.

Jun 1, 2024

Latest Report Updates
Check out the latest report updates on the website.

Apr 11, 2024

Fastenal Puts Up Mixed First Quarter Results
Image: Fastenal reported mixed first quarter 2024 results. We like its business model quite a bit. On April 11, Fastenal Company reported mixed first-quarter fiscal 2024 results with revenue and earnings per share coming in slightly lower than expectations. Net sales advanced 1.9% for the three-month period ending March 31. The company noted that adverse weather impacted sales in its first quarter by about 10 to 30 basis points on a net basis. Operating income nudged lower in the quarter modestly, while net income advanced 0.9% in the period on a year-over-year basis. Diluted earnings per share was roughly flat in the quarter on a year-over-year basis, increasing 0.6% from the same period a year ago. We like Fastenal’s business model quite a bit, and shares yield ~2.1% at the time of this writing.

Mar 14, 2024

Latest Report Updates
Check out the latest report updates on the website.

Feb 25, 2024

We Remain Bullish; Is This 1995 – The Beginning of a Huge Stock Market Run?
Image: Large cap growth stocks have trounced the performance of the S&P 500, REITs, and bonds since the beginning of 2023. We expect continued outperformance in this area of the market. We’re now roughly four years past the depths of the COVID-19 meltdown, where equities collapsed in February and March of 2020. As the markets began to recover through 2020, our long-term conviction in equities only grew stronger. We think the biggest risk for long-term investors remains staying out of the market on the basis of what could be considered stretched valuation multiples. As we outlined heavily in the book Value Trap, valuation multiples hardly tell the complete story about a company and often omit key long-term earnings growth, cash flow dynamics, and balance sheet health considerations. We remain bullish on equities for the long haul, and we think the next couple years will be incredibly strong. Our best ideas can be found in the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, High Yield Dividend Newsletter portfolio, ESG Newsletter portfolio, and via the Exclusive publication as well as options idea generation.

Jan 21, 2024

3 Substantial Benefits of Dividend Growth Investing
Image Source: www.epictop10.com. There are three primary benefits of a well-executed dividend growth strategy, one that is carried out with prudence and care and one that pays careful attention to the intrinsic value of the stock and its critical cash-based components. Albert Einstein is reported to have called compound interest the "eighth wonder of the world," but dividend growth investing has the potential to offer long-term investors so much more! Let's explain.

Jan 19, 2024

Dividend Increases/Decreases for the Week of January 19
Let's take a look at firms raising/lowering their dividends this week.