ANDE

How Some Members Use Valuentum’s Investment Services

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By Brian Nelson, CFA Thank you for your membership to Valuentum. 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. We wanted to make sure that you know that, if you’re a dividend growth or income investor, that there are others that use our website to utilize the Valuentum process, fair value estimates and other metrics. Similarly, if you’re a practitioner of the Valuentum system, I wanted to make sure that you are … Read more

General Mills Managing Inflationary Headwinds; Scaling Up Pets Business

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Image Source: General Mills Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On December 21, General Mills Inc (GIS), the firm behind the Cheerios, Pillsbury, and Nature Valley brands (among various others), reported second quarter earnings for fiscal 2022 (period ended November 28, 2021) that beat consensus top-line estimates but missed consensus bottom-line estimates. The consumer staples giant also raised its full year guidance for fiscal 2022 in conjunction with its latest earnings report. In the face of major input cost inflationary pressures and supply chain constraints, brought on in part by the coronavirus (‘COVID-19’) pandemic and the fiscal/monetary policies enacted to offset the economic damage caused by the public health crisis, General Mills has … Read more

Kroger Beats Estimates and Once Again Raises Guidance

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Image Source: Kroger Co – Third Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Kroger Co (KR) recently reported third quarter earnings for fiscal 2021 (period ended November 6, 2021) that beat both consensus top- and bottom-line estimates, and the retailer also once again boosted its full-year guidance for fiscal 2021. Kroger’s operations include retail store brands such as City Market, Food 4 Less, Fred Meyers, Metro Market, and more, along with its private label brands of consumer staples offerings. Shares of KR have shifted meaningful higher since its latest earnings update as of this writing. Earnings Update In fiscal 2020 (period ended January 30, 2021), Kroger put up banner performance due in large part to the “panic” … Read more

Tyson’s Pricing Strength Enables Margin Expansion During Turbulent Time

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Image Shown: Tyson Foods Inc put up stellar results for fiscal 2021. Image Source: Tyson Foods Inc – Fourth Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On November 15, Tyson Foods Inc (TSN) reported fourth quarter earnings for fiscal 2021 (period ended October 2, 2021) that beat both consensus top- and bottom-line estimates largely due to the firm’s impressive pricing strength, the focus of this article. The company is facing major headwinds from the coronavirus (‘COVID-19’) pandemic, from labor shortages to supply chain bottlenecks to rising input costs, though Tyson has adeptly navigated this turbulence while bolstering both its revenues and its margins. For reference, please note that Tyson’s fiscal year ends around late-September or early October. … Read more

Conagra Brands Facing Major Inflationary Headwinds

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Image Shown: Conagra Brands Inc recently reduced its full-year guidance for fiscal 2022 in the face of major inflationary headwinds. Image Source: Conagra Brands Inc – Fourth Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On July 13, the company behind the Slim Jim, Duncan Hines, Gardein brands (among other), Conagra Brands Inc (CAG), reported fourth quarter earnings for fiscal 2021 (period ended May 30, 2021) that beat both consensus top- and bottom-line estimates. However, its guidance for fiscal 2022 came in a bit light in the face of major inflationary headwinds which saw shares sell off initially after the report was published. Please note that its fiscal 2020 was a 53 week reporting period while its fiscal … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Dividend Increases/Decreases for the Week Ending December 21

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Below we provide a list of firms that raised their dividends during the week ending December 21. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Abbot Laboratories (ABT): now $0.32 per share quarterly dividend, was $0.28. ABM Industries (ABM): now $0.18 per share quarterly dividend, was $0.175. Alamo (ALG): now $0.12 per share quarterly dividend, was $0.11. ALPS Alerian Energy Infrastructure ETF (ENFR): now $0.1863 per share quarterly dividend, was $0.17. ALPS Cohen & Steers Global Realty Majors ETF (GRI): now $0.4095 per share quarterly dividend, was $0.22. ALPS Equal Sector … Read more

Prepared Remarks From Nelson Exclusive Conference Call June 30

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Read President of Investment Research Brian Nelson’s prepared remarks for the yearly roundup conference call, held for Nelson Exclusive members. If you would like to subscribe to the Nelson Exclusive publication, please learn more about the publication here. The Nelson Exclusive publication does not reflect real performance. Performance is hypothetical and does not represent actual trading. Ladies and Gentlemen, Thank you very much for joining us on the first conference call for members of the Nelson Exclusive publication. The first year of the publication has surely been an exciting one for all involved. When I first wrote the introductory letter of the Nelson Exclusive on July 1, 2016, we were well-aware the market had laid down the gauntlet for this publication. … Read more