Exclusive Analysis for the Discerning Investor
The long-term outlook for Apple is debated in light of the Samsung Galaxy Note 7 debacle. What does the future hold? Let’s get the thoughts of the Valuentum analyst team. Companies mentioned: AAPL, GOOG, GOOGL, SSNLF, BBRY
By Kris Rosemann Late September brought two announcements from Apple (AAPL) that should bode well for demand for its mobile devices and wearable technology and add to the reach of its ecosystem of apps. On September 28, the firm announced a partnership with consulting firm Deloitte & Touche to form a service called ‘EnterpriseNext’ in which Deloitte is creating a service with over 5,000 strategic advisors focused on helping businesses maximize the effectiveness of their use of iOS with iPhones and iPads. Deloitte CEO Punit Renjen pointed to his company’s use of Apple products, and 75 custom apps, as a core driver behind the deal. Deloitte will not only offer consulting services across more than 20 industries but will also … Read more
By Brian Nelson, CFA Today’s stock market is a difficult one. That Apple (AAPL) is selling off after disappointing fiscal second-quarter results is unfortunately no surprise to us, “Apple Will Go Lower… And It Will Be ‘Forced’ Into Acquisitions (January 2016).” There may be “nowhere to run, nowhere to hide” for market participants seeking full exposure to equities. Unfortunately, it’s no consolation to the reader that missed our profit-taking alert in Apple a few months ago, and our discussion to take even more shares off the table “Looking To Trim Apple… (December 2015).” In August 2015, we removed one third of the position in Apple from the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio at $108.92 for a … Read more
By Brian Nelson, CFA Hanging out in malls on Thanksgiving isn’t really our thing at Valuentum, but what we’re hearing thus far is that “Thanksgiving shopping was a bust.” It even felt as though tourism was down a bit as traditional near-impassable auto traffic was surprisingly absent in at least one key family destination, the gateway to the Smokies in Gatlinburg, Tennessee, and maybe keeping travelers from commuting through the city of Chicago was the potential for riots following the release of the dash cam video allegedly showing a police officer shooting a youth 16 times in November of last year. My trip from northern Illinois to Gatlinburg, Tennessee, and back was rather uneventful, not that I am complaining about … Read more
Last January, we were puzzled by the situation surrounding BlackBerry (BBRY), and judging by the volatility in shares, many other investors were as well. The firm denied rumors that it would be purchased for a substantial premium by competitor Samsung (SSNLF) in hopes to continue its efforts to create a larger, more diverse portfolio to compete with Apple (AAPL); BlackBerry continues to bet on its ability to use its own patent portfolio to facilitate a turnaround, even if tying the knot may still be the easy way out. In any case, the possibility that such a turnaround has finally begun has increased…maybe. In early November, BlackBerry completed the acquisition of secure mobile communications leader Good Technology for $425 million in … Read more
Apple (AAPL) hit the ball out of the park again in its fiscal fourth-quarter results ended September 26. Apple skeptics are in some ways like Chicago Cubs fans, often saying “wait until next year,” but in both cases, we think Apple and the Cubbies are the real deal (Valuentum is based in the Chicagoland area). As the iPhone giant strings strong report after strong report together, at what point does the market finally give it full credit in the valuation context? Shares continue to trade at less than 9 times earnings, excluding net cash on the balance sheet, as we outlined in the following: “Quantifying Apple’s Tremendous Investment Case.” That is a phenomenal value in today’s still-overheated equity market. The … Read more
A prolonged period of low interest rates has driven income investors to dividend growth investing as a way to achieve retirement goals. Traditional dividend growth analysis has rested on evaluating a company’s dividend payout ratio and its track record of historical consecutive annual dividend increases. A supplement to these approaches, the forward-looking, cash-flow- based Dividend Cushion ratio maps a company’s future expected free cash flows to its future expected cash dividends paid (after considering balance sheet health) and has shown to be a superior indicator of both dividend growth (risk) and total return relative to other dividend growth analytical processes. The results in this paper showcase the outperformance of a select number of high-yielding equities with strong Dividend Cushion ratios … Read more
Everybody wants to love Apple (AAPL), except those that don’t own it. If you don’t own it, don’t sweat it. We still very much like the company, but there are a number of other companies where we can certainly find common ground. Our cost basis on Apple is but a fraction of where it is trading, and we’re still happy with the latest transaction from the July 24, 2013, email transaction alert when the company was added to the Dividend Growth Newsletter portfolio and when the existing position in the Best Ideas Newsletter portfolio was increased. To us, Apple is not so much a technology company, as it is levered to the ongoing strength toward consumer mobilization, which is inevitable. … Read more
The end is nigh for RadioShack (RSH). After years and years on its path toward obsolescence, RadioShack may be finally throwing in the towel. The Wall Street Journal reported January 14 that the electronic gadget store that shares its name with the technology of yesteryear is prepping for a bankruptcy filing as early as February. The penny stock once traded north of $20 as recently as a few years ago, and forever, Radio Shack will be an excellent example of why share buybacks aren’t always a good thing. Should RadioShack sign the bottom line sealing its fate, there are a few things that could happen with the equity. The first is obvious. RadioShack’s equity will be cancelled at the end … Read more
A trip to the local Apple retail store is all that is needed to assess the continued tremendous interest in Apple products.