CKEC

Paper: Value and Momentum Within Stocks, Too

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Please select the image below to download, “Value and Momentum Within Stocks, Too:” 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. To download the full report, please click here (pdf). ———- Actual results … Read more

Something New!

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Hi everyone: To stay true to our mission, you’ll find something new regarding our methodology. In the coming weeks, you’ll see this table in our work going forward. We just wanted to let you know. We appreciate your membership very much!   ——————————————— About Our Name But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.                          — Warren Buffett, Berkshire Hathaway annual report, 1992 At Valuentum, we take Buffett’s thoughts one step further. We think the best opportunities arise from an understanding of … Read more

New Payment Option! Valuentum Research Update!

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Hi everyone: — We’re excited to say that we’re adding additional payment flexibility at Valuentum. — Many members have expressed interest in paying via other providers, and we have added Square to the mix. You can use credit or debit card or bank (ACH) to pay via invoice. — With all of the goings-on in the financial technology and payments space, we wanted to continue to provide members options to pay their memberships how they want and through who they want. You can always reach out to us at info@valuentum.com. — You’ll notice that we’ve also tightened our focus at Valuentum during the past 12-24 months in advance of what has certainly become a more difficult 2022 than even some … Read more

Resetting Your Mental Model

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Image Source: affen ajlfe A version of this article was originally published on our website October 6, 2013. Having the right mental model and using the right information can be the reason why you win or lose in investing. “What is the definition of timeliness? Many believe it is getting information to investors as quickly as possible after an event, or updating something every single day or week for immaterial information. I believe in a different definition of timeliness. I believe timeliness is using all information available in a mosaic approach to accurately predict the event before it even happens. Take Kinder Morgan as the latest example. We were the only ones predicting what was going to happen before it did. To investors, … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

Hasbro Hit by Gross Margin, Timing Issues

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Shares of Dividend Growth Newsletter portfolio holding Hasbro dropped after the company reported its second quarter earnings. By Kris Rosemann Dividend Growth Newsletter portfolio holding Hasbro (HAS) has been knocking the proverbial cover off the ball with returns (its stock has nearly tripled since being added to the Dividend Growth Newsletter portfolio) and the company has rival Mattel’s (MAT) back against the wall, but the toy giant’s shares recently hit a speed bump. In its second-quarter results, released July 24, Hasbro reported revenue growth of 11%, operating profit margin expansion of 60 basis points, and net earnings-per-diluted-share growth of nearly 30%, but shares faced significant pressure following the release. On the surface, it looks to be another strong quarterly report … Read more

Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Looking to Trim Apple; Star Wars Mania Continues

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Let’s get this out of the way. We’re not worried about Apple (AAPL) at all. The company is sitting on a mountain of net cash and is simply a free cash flow machine. We think the iPhone-maker’s products continue to fly off the shelves, and this holiday season for Apple may be the best in its storied history. But sometimes the market is just not fair…and for a company trading at less than 10 times forward earnings, excluding net cash, is borderline an injustice. Still, we plan to take some more profits on the company in the newsletter portfolios if we catch a strong updraft in the markets. We continue to value shares north of $140 each, and as the … Read more

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

3 Important Pieces of News on the Monday of This Shortened Holiday Week

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The Hunger Games: Catching Fire Sets November Records Lions Gate’s (LGF) shares are under pressure this morning as the market’s expectations of The Hunger Games: Catching Fire, the second installment of the Hunger Games franchise, were just a bit too high, despite the film grossing approximately $160 million in North America over the weekend, setting a November record. Globally, the sequel catapulted to a $307.7 million opening, exceeding the original film’s $211.8 million debut in March 2012. The second Hunger Games movie grossed approximately $18 million in IMAX (IMAX) theaters worldwide and $12.6 million in 347 IMAX theaters in North America since the November 22 release. IMAX noted that this was the best three-day domestic opening for November in IMAX’s … Read more