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We’re Considering FedEx for the Dividend Growth Newsletter Portfolio

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Image Source: Valuentum By Brian Nelson, CFA During the past several weeks, we’ve grown increasingly concerned about the health of consumer-tied entities across the consumer staples and consumer discretionary spaces. Many consumer staples entities, while raising prices, aren’t raising them fast enough to drive operating-income and bottom-line expansion, while many consumer discretionary companies may be facing higher freight and logistics costs and weaker performance in Greater China, as that exposed in Nike’s (NKE) most recently-reported quarter, where inventory advanced 23%. The tell-tale sign about the health of the consumer may be Amazon (AMZN) Prime Day, which is coming up on July 12-13, but based on many of the reports we’ve monitored this past earnings season, consumers may be willing to spend … Read more

The Stock Market Is Nearing Technical Support Levels

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Image: This year has been a difficult one for equity investors, but the selling pressure that has been common in the markets may start to slow as broader indices such as the S&P 500 begin to approach technical support levels. On the S&P 500, we think there is substantial technical support in the 3,200-3,500 range, which to us suggests that further near-term downside may be limited. The S&P 500 closed at 3,674.84 on Friday, June 17, and we think fair value is much higher. By Brian Nelson, CFA  It’s been difficult to watch the stock market give up much of the gains reaped over the past year or so during the selling barrage that has occurred thus far in 2022. … Read more

Prologis Buying Duke Realty as Logistical Real Estate Market Consolidates Further

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Image Shown: Prologis Inc is merging with Duke Realty Corporation through an all-stock acquisition that will see Prologis cement itself as a logistical real estate powerhouse in the US and worldwide. Image Source: Duke Realty Corporation / Prologis Inc – June 2022 IR Presentation announcing the acquisition of Duke Realty by Prologis By Callum Turcan On June 13, Prologis Inc (PLD) announced it was buying Duke Realty Corporation (DRE) through an all-stock transaction worth ~$26 billion when including the assumption of debt. In the wake of severe capital market volatility, some major deals in the real estate investment trust (‘REIT’) space are still getting done. Back in May 2022, Duke Realty rejected Prologis’ previous offer worth ~$24 billion as being … Read more

Taiwan Semi Firing on All Cylinders

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Image Source: Taiwan Semiconductor Manufacturing Company – First Quarter of 2022 IR Earnings Presentation By Callum Turcan Semiconductor components, or “chips,” are the bedrock of the digital economy. Taiwan Semiconductor Manufacturing Company (TSM) operates numerous semiconductor fabrication sites all of the world, with its major manufacturing hub located in Taiwan, that produce chips utilized in all sorts of applications. Furthermore, Taiwan Semi is one of only a handful of companies capable of producing high-end chips at scale. Taiwan Semi’s business model revolves around producing chips for third-parties as the firm does not design semiconductor components itself, and the company is the largest semiconductor foundry in the world (foundries are chip fabrication sites specifically built to meet third-party needs). We are … Read more

AT&T and Warner Bros. Discovery Go Their Separate Ways

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Image Shown: AT&T Inc is spending heavily to grow its 5G wireless network while expanding the reach of its broadband footprint. Image Source: AT&T Inc – March 2022 Analyst & Investor Day Event Presentation By Callum Turcan On April 8, AT&T Inc (T) closed the merger of the WarnerMedia business with Discovery to create a powerhouse in the media and entertainment industry after then-Discovery shareholders voted to approve the deal on March 11. The new entity, Warner Bros. Discovery Inc (WBD), is home to various streaming services (HBO Max, discovery+, CNN+) along with linear and premium TV channels (Discovery Channel, HBO, TNT, HGTV, CNN, Animal Planet, Adult Swim, Cartoon Network). Warner Bros. Discovery began trading on the NASDAQ stock exchange … Read more

We’re Still Bullish; GDP Continues To March Ever Higher!

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By Brian Nelson, CFA We believe there will be continued strength in the equity markets during the back half of this year and into 2023. There are myriad headwinds to this bullish underlying thesis, but big-cap company fundamentals remain strong, and we think this will become evident during first-quarter 2022 earnings season, which is already upon us. — We think the market is paying attention to all of the wrong things. Certainly, interest rates are important and Fed rate hikes could dampen growth, but the reality is that interest rates are still at all-time lows, and we doubt that the Fed will do anything to impact the wealth effect it fought so hard to preserve during the depths of the COVID-19 … Read more

AT&T’s WarnerMedia Unit and Discovery Are Close to Finalizing Their Blockbuster Merger

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Image Shown: Announced back in May 2021, the blockbuster merger of AT&T Inc’s WarnerMedia unit with Discovery Inc is expected to close in the second quarter of 2022. Image Source: AT&T Inc & Discovery Inc – May 2021 IR Presentation By Callum Turcan The blockbuster merger of WarnerMedia, currently a part of AT&T Inc (T), with Discovery Inc (DISCA) (DISCB) (DISCK) is getting closer to completion. On March 11, Discovery shareholders voted on whether to proceed with the transaction. AT&T does not need to secure shareholder approval through a vote to close the transaction. If everything goes as planned, WarnerMedia and Discovery are set to close their merger during the second quarter of 2022. Let’s dig more into the details … Read more

GoodRx’s Modest Q4 Miss, Slowing Revenue Growth Expectations Send Shares Tumbling

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Image: Many speculative areas have faced tremendous pressure in recent months from new issues to entities tied to the trend of disruptive innovation. Image Source: TradingView. By Valuentum Analysts The past year or so hasn’t been kind to companies tied to the theme of disruptive innovation. New issues such as Snowflake (SNOW), Zoom Video Communications, Inc. (ZM), and Palantir Technologies Inc. (PLTR) have also had a rough go at it of late. For example, the Renaissance IPO ETF (IPO) has fallen almost 20% since late September 2020, while the ARK Innovation ETF (ARKK) has fallen almost 30%. GoodRx Holdings, Inc. (GDRX) is one of those companies that hasn’t performed as well. We first wrote up GoodRx Holdings, Inc. in December … Read more

Best Idea Disney Rebounding Nicely; Shares Look Cheap

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Image Shown: Shares of The Walt Disney Company strengthened February 9 in the wake of the media and entertainment giant’s latest earnings report. We include shares of DIS as an idea in the Best Ideas Newsletter portfolio. By Callum Turcan On February 9, The Walt Disney Company (DIS) reported first-quarter fiscal 2022 earnings (period ended January 1, 2022) that smashed past both consensus top- and bottom-line estimates. A sharp rebound at its ‘Disney Parks, Experiences and Products’ unit impressed investors and shares of DIS are strengthening nicely in the wake of its latest earnings report. We are big fans of Disney and include shares of DIS as an idea in the Best Ideas Newsletter portfolio. Our fair value estimate stands … Read more

Undervalued PINS, SNAP Rallying; FB Incredibly Mispriced, and Refreshed Consumer Discretionary Reports

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Image: Valuentum’s Periodic Screener, February 4.  — By Valuentum Analysts — Two of the most undervalued stocks in our coverage Pinterest, Inc. (PINS) and Snap Inc. (SNAP) are indicated to rally hard February 4 after issuing positive earnings reports, providing further evidence of the importance of the discounted cash flow process and the magnet that intrinsic value estimates are to stock prices. Pinterest is indicated up ~14%, while Snap is indicated up ~47% based on the latest information we have. — The refreshed Valuentum periodic data screener is now available for download on our website (it can be found in the ‘Stock Screens’ section in the left column of our website). The periodic data screener, which also includes updated fair value estimates on … Read more