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Recent Articles
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Paper: Value and Momentum Within Stocks, Too
Aug 9, 2024
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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.
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Dividend Increases/Decreases for the Week of August 9
Aug 9, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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Disney Achieves Profitability Across Combined Streaming Businesses
Aug 7, 2024
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Image: Disney’s shares are under pressure despite marked improvement in earnings.
Disney noted that within its Experiences division, “segment revenue growth was impacted by moderation of consumer demand towards the end of Q3 that exceeded (its) previous expectations.” Though the pace of consumer demand at Disney theme parks remains a big question during the current fiscal fourth quarter, management’s new full year adjusted earnings per share growth target is now 30%, which reveals a company that is making progress from its troubles a couple years ago. We value shares of Disney just shy of $100 each.
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Amazon's Second Quarter Results Were Mixed But Free Cash Flow Improved Significantly
Aug 7, 2024
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Image: Amazon traded aggressively lower following its second-quarter results.
Though Amazon missed second-quarter revenue consensus estimates, and the midpoint of its third-quarter revenue and earnings guidance came in below the consensus forecasts at the time, we continue to point to aggressive growth at AWS coupled with the firm’s strong free cash flow generation as reasons to not be bearish on the stock. We won’t be adding Amazon to any newsletter portfolio as we are already quite tech-heavy, but the company’s share price slide could provide an entry point on a name with strong fundamental momentum.
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