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Recent Articles
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The Fall of an Icahn?
May 10, 2023
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Image Source: danor shtruzman.
Hindenburg Research put together a compelling short report on Icahn Enterprises (IEP). We think it is worth a read.
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Earnings Roundup
May 9, 2023
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Let's get Nelson's thoughts on five stocks recently reporting their first-quarter 2023 results: PYPL, DPZ, MNST, BKNG, TXRH.
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Long Live Apple and Large Cap Growth!
May 8, 2023
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Image: Since the release of the book Value Trap in December 2018, an ETF that tracks large cap growth (SCHG) has outperformed not only the S&P 500 (SPY), but also the areas of dividend growth (SDY) and small cap value (IWN) by sizable margins.
In a world where monetary policy is tightening and regional banks are failing, we maintain our long-held view that big cap tech and large cap growth are the places to be. Since the release of the book Value Trap in December 2018, an ETF that tracks the area of large cap growth (SCHG) has not only outperformed the S&P 500 (SPY), but also the areas of dividend growth (SDY) and small cap value (IWN) by sizable margins. We love the net cash rich balance sheets and strong expected future free cash flow generators within the area of large cap growth, and Apple remains one of our very favorites that fits the mold. Apple is included in both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.
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Apple’s Second-Quarter Fiscal 2023 Results Were Good Enough
May 5, 2023
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Image Source: Valuentum.
On May 4, Apple reported second-quarter results for its fiscal 2023 for the period ending April 1, 2023, that were slightly better than consensus forecast, but we’re viewing the report as mixed. Revenue dropped 2.5% in the quarter on a year-over-year basis as better-than-expected resilience in iPhone sales could not offset weakness in Mac and iPad performance, and its quarterly EPS of $1.52 was unchanged from last year’s mark. Revenue in the company’s Services business jumped 5.4%, and the iPhone maker announced a $90 billion buyback program as it upped its quarterly dividend by more than 4%, to $0.24 per quarter. We plan to make a few tweaks to our valuation model of Apple, but we don’t anticipate a material change to our fair value estimate.
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