Valuentum Exclusive Analysis for the Discerning Investor

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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.

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.

Mar 11, 2024

How Some Members Use Valuentum’s Investment Services
We serve a wide variety of investors, including dividend growth investors, value investors, and pure Valuentum investors, among others. Many different types of investors and professionals use our research and financial analysis in a whole host of applications from individual stock-selection to the evaluation of closed-end funds to an overlay in a money-management setting and beyond. The Best Ideas Newsletter portfolio seeks to find stocks that have good value and good momentum characteristics and typically targets capital appreciation potential over a longer-term horizon. The Dividend Growth Newsletter portfolio seeks to find underpriced dividend growth gems that generate strong levels of free cash flow and have pristine, fortress balance sheets, translating into excellent Valuentum Dividend Cushion ratios. The High Yield Dividend Newsletter portfolio seeks to find some of the highest-yielding stocks supported by strong credit profiles and solid business models, but not always robust traditional free cash flow. Ideas in this newsletter offer higher-yielding opportunities, but also much higher capital and income risk. We also offer a full suite of products to financial advisers (gold level) that range from a more extensive Excel-based screening tool (the DataScreener) to 'Ideas' and 'Dividend' publications that are released on a quarterly basis. Our research product includes hundreds of stock reports, fair values, fair value ranges, associated commentary, as well as dividend reports with Valuentum Dividend Cushion ratios and expected dividend growth rates. Silver and gold-level members can add the Valuentum Exclusive or additional options commentary/ideas to their plans. The Exclusive publication is a part of the institutional (platinum) level membership.

May 12, 2023

Dividend Increases/Decreases for the Week of May 12
Let's take a look at firms raising/lowering their dividends this week.

Mar 14, 2023

Norfolk Southern’s Environmental and Safety Troubles Plague Stock
Image: Norfolk Southern’s environmental troubles have sent its stock back to pre-pandemic levels. The company is yet another example of why companies cannot take for granted how their operations can negatively impact the environment. Image Source: TradingView. Neglecting the environment and employee and consumer/resident safety is a sure way for companies to end up in hot water. Norfolk Southern is under special investigation by the National Transportation Safety Board (NTSB) for a series of accidents during the past couple years, punctuated by the derailment and chemical spill occurring in East Palestine, Ohio, in early February. Though the firm’s costs associated with the high-profile train derailment may be capped at $75 million, its reputation may be irreparably harmed. Norfolk Southern is a prime example of why ESG investing has an important role in the marketplace, as the company simply dropped the ball when it came to ‘Environmental’ and ‘Social’ considerations within the ESG construct.

Dec 23, 2022

FedEx’s Revenue Falls, Operating Income Tumbles in Fiscal Second Quarter
Image: FedEx’s forecast for fiscal 2023 earnings have almost been halved since it gave guidance in June of this calendar year. Image Source: FedEx.We thought FedEx would be able to offset weakness in its business with yield and cost savings initiatives, but things have deteriorated even further than what we had been expecting. Revenue faced considerable pressure during the company’s second-quarter fiscal 2023 results, while operating income tumbled more than 60% in the period. The firm has now cut its fiscal 2023 earnings per share forecast practically in half since it gave updated guidance in June of calendar 2022, and its financial targets for fiscal 2025 may be in jeopardy. We’re no longer evaluating FedEx for inclusion in the Dividend Growth Newsletter portfolio, despite shares yielding ~2.6% at the time of this writing.

Dec 14, 2022

Union Pacific Outperforming North American Rail Traffic Trends But Facing Inefficiencies and Inflation Hurdles
Image Source: Union Pacific. The rail industry may have avoided a labor strike, but North American rail traffic remains under pressure, while many operators are struggling with inflationary pressures and operational inefficiencies. Union Pacific remains our favorite way to play the rails, but 2022 has been a difficult year for the firm, with free cash flow coming under pressure as capital investments have soared so far in 2022. Union Pacific garners an ‘A’ rating by Moody’s, Fitch and S&P, so we’re not too worried about its large net debt position. Shares yield ~2.4% at the time of this writing, but we’re not pulling the trigger.

Oct 30, 2022

Something New!
Hi everyone: To stay true to our mission, you'll find something new regarding our methodology. In the coming weeks, you'll see this table in our work going forward.

Oct 20, 2022

Announcing Valuentum’s Customer Appreciation Day Winners!
Let's see who won an autographed copy of Value Trap and what they said about Valuentum's research! We applaud all of our members in their quest to preserve and generate long-term wealth. Keep going strong!

Oct 19, 2022

New Payment Option! Valuentum Research Update!
We're excited to say that we're adding additional payment flexibility at Valuentum. Many members have expressed interest in paying via other providers, and we have added Square to the mix. You can use credit or debit card or bank (ACH) to pay via invoice. With all of the goings-on in the financial technology and payments space, we wanted to continue to provide members options to pay their memberships how they want and through who they want. You can always reach out to us at info@valuentum.com.