CMCSA

Our Reports on Stocks in the Telecom Services Industry

by

Image Source: Mike Mozart Structure of the Telecommunications Industry The telecom industry is characterized by rapid technological change, intense competition and pricing pressures. The mature wireline segment remains under attack from cable/wireless products. Mobile technology enhancements such as the iPhone continue to attract new wireless subscribers in less saturated markets, but this has not lessened the intensity of competition. Industry constituents continue to pursue acquisitions in order to reduce bloated cost structures and achieve synergies. Average revenue per subscriber and churn rates should be monitored closely. We’re neutral on the structure of the group. Dividend Yield: Estimated on a forward-looking annualized basis. VBI: The Valuentum Buying Index, a timeliness indicator that overlays a price-to-fair-value estimate consideration. Fair Value Estimate: Derived by … Read more

Exclusive Call: What To Expect From Valuentum in 2023

by

Video: 2022 was a successful year by almost every measure from the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to the simulated High Yield Dividend Newsletter portfolio and Exclusive publication and beyond. There were some disappointments in 2022, of course, but the year showed the value of a Valuentum membership. Join President of Investment Research Brian Nelson on this year’s Exclusive conference call to learn what to expect from Valuentum in 2023. Cheers! Transcript President of Investment Research Brian Nelson: Happy Holidays everyone! I hope that you are enjoying this special time of year with family and friends, and I wish you all a wonderful 2023! I just wanted to take a few minutes to recap … Read more

Verizon’s Big Share-Price Drop Opens Opportunity for 6.8% Dividend Yield

by

Image: Verizon’s shares have been punished, but this has opened an opportunity for a 6.8% dividend yield. Image Source: TradingView By Brian Nelson, CFA When Verizon (VZ) reported third-quarter results in late October, the company’s revenue advanced 4% on a year-over-year basis, exceeding the consensus estimate, while non-GAAP earnings per share came in at $1.32 per share, beating the consensus estimate by a few pennies, but down slightly on a year-over-year basis. Adjusted EBITDA fell 0.4% from the same period last year. Verizon is one of the leading communication service providers in the world, and its operations span data, video and voice services across its networks and platforms. The company’s two reportable segments, Verizon Consumer Group and Verizon Business Group, … Read more

American Tower Ups Dividend Payout 6%+ But Shares Not Immune to REIT Sector Weakness

by

Image Source: American Tower By Brian Nelson, CFA On December 8, American Tower (AMT) upped its quarterly payout by 6.1%, to $1.56 per share relative to its last sequential dividend issued in October, and now shares yield ~2.9% on a forward estimated basis. Equity REITs have been pummeled in 2022, and AMT has unfortunately failed to buck the trend. Though we like the scale and leverage inherent to cell tower stocks’ business models (which we’ll talk about in this work), we’re taking note of weakening adjusted funds from operations (FFO) and free cash flow trends at AMT, particularly in light of the tower operator’s massive net debt position. Interest rates have been working against REITs during 2022. Image Source: American … Read more

2022 Showcased the Value of a Valuentum Membership

by

In bull markets, almost everyone is a winner. But 2022 was different. This year was a big test for Valuentum, and we passed with flying colors. We delivered across the board during the year from ideas in the Exclusive publication and the efficacy of the dividend growth methodology to the resilience of high yield ideas and simulated Best Ideas Newsletter portfolio relative performance–despite setbacks from Meta Platforms, PayPal, and beyond. Tune in to the latest video installment from Valuentum. Thanks for listening! Tickerized for holdings in the SPY. ——————————————— 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” … Read more

Market Whipsaw: Crypto Collapse and a Lower-than-Expected Inflation Print

by

Image: Uncertainty in the cryptocurrency markets has surged with concerns over the liquidity of a key exchange. Investors are weighing the spillover effects of crypto with the view that the pace of inflation may have peaked. — By Brian Nelson, CFA — The U.S. equity market continues to be highly volatile as it whipsaws between concerns over the health and sustainability of cryptocurrency and optimism over lower-than-feared inflation readings. We maintain our bearish/defensive stance on equities, but at the same time, we continue to be “fully-invested” across the simulated newsletter portfolios in part because we don’t want to miss out on days like today, November 10, when the markets are soaring ~2.5%-5.5% depending on which index you are monitoring. We’re also … Read more

ALERT: Replacing Disney with Republic Services in BIN Portfolio

by

Image Source: Valuentum By Brian Nelson, CFA After The Walt Disney Company’s (DIS) poor performance in its fiscal fourth quarter (calendar third quarter) 2022 results, released November 9, we no longer think the company is a great fit as one of our best ideas. We have cut our discounted cash-flow-derived fair value estimate of Disney to $93 per share and are removing the company from the simulated Best Ideas Newsletter (BIN) portfolio. The cash “raised” from Disney in the Best Ideas Newsletter portfolio will be allocated to one of our favorite garbage haulers, Republic Services (RSG), which is already a key idea in the simulated Dividend Growth Newsletter portfolio. Disney’s revenue in its fiscal fourth quarter grew 9% as the … Read more

Something New!

by

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

Announcing Valuentum’s Customer Appreciation Day Winners!

by

In no particular order — the five winners… As a Chief Investment Strategist that oversees a significant amount of assets, it is vital to have unbiased research that we can lean on for decision making. Brian and the Valuentum team help provide a disciplined and fundamental approach to stock analysis without the typical Wall Street bias or conflicts of interest. The value we get on a monthly basis for having this detailed thought analysis and wise long-term thinking greatly outweighs the cost. We are very happy to have them on our short list of management we trust.  – Stephen H. (October 2022) —– I’d like you to know what my takeaways are from your research: 1) Be wary of capital … Read more

AT&T’s Free Cash Flow Coverage of Its Dividend Is Looking Better But Economic Malaise Awaits

by

Image: AT&T’s dividend obligations have been substantially reduced, aiding in its coverage of the payout with free cash flow. Image Source: AT&T. By Brian Nelson, CFA AT&T Inc. (T) has taken investors on a wild ride the past couple years, first saying it would support its payout as recently as early 2021, and then cutting it as it pulled a 180 on its strategic vision. However, in the communication giant’s third-quarter report, released October 20, AT&T showed robust free cash flow generation ($3.84 billion) that nearly doubled cash dividends paid in the period ($2.01 billion). We liked this a lot as it reveals marked improvement in coverage on a year-over-year basis. However, the uncertain economic climate coupled with inflationary pressures … Read more