CMI

Net Cash Rich Tesla Reports Solid Free Cash Flow, Closes Out 2021 on a High Note

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Image Shown: A look at Tesla Inc’s new ‘Gigafactory’ manufacturing facility in Austin, Texas, that is currently under development. Image Source: Tesla Inc – Fourth Quarter of 2021 IR Shareholder Deck By Callum Turcan On January 26, Tesla Inc (TSLA) reported that it had produced ~306,000 vehicles and delivered ~309,000 vehicles during the final quarter of 2021. The electric vehicle (‘EV’) and battery maker beat both consensus top- and bottom-line estimates in the fourth quarter as it continued to successfully ramp its production capabilities. We plan to fine-tune our cash flow valuation model covering Tesla to take its latest earnings report into account, but we still expect the point fair value estimate to be below where shares are trading at … Read more

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

Supply Chain Issues Won’t Disrupt Honeywell’s Free Cash Flow Trajectory

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Image: Honeywell’s third-quarter 2021 results were mighty impressive. We continue to like what we see at this industrial dividend growth giant. Image Source: Honeywell By Brian Nelson, CFA On Friday, October 22, Dividend Growth Newsletter idea Honeywell (HON) reported mixed third-quarter results where revenue growth (+8.7%) fell just short of expectations, while non-GAAP earnings per share bested the consensus mark by a modest margin. GAAP earnings fell just shy of the market’s views heading into the results, but we continue to like Honeywell as an idea in the Dividend Growth Newsletter portfolio. The quarterly headlines were impressive. Organic sales advanced 8% in the quarter, with expansion in all four of its business segments. The company’s operating margin leapt 180 basis … Read more

Fastenal’s Latest Earnings Update Indicates US Economic Recovery Continues

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Image Source: Fastenal Company – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan On October 12, Fastenal Company (FAST) reported third quarter 2021 earnings that beat top-line consensus estimates and matched bottom-line consensus estimates. The company’s latest earnings report reinforces our thesis that the US economy is continuing to recover from the worst of the coronavirus (‘COVID-19’) pandemic. In 2020, Fastenal generated over 85% of its total sales in the US. Fastenal provides products and services in the decentralized maintenance, repair & operation (‘MRO’) industry, a space where the company attempts to gain an advantage over distribution by locating its operations as close as possible to the economic point of contract with its customers. Earnings Update Within its … Read more

Innovative Fuel Cell Company Ceres Power Has a Stellar Growth Outlook

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Image Shown: Ceres Power Holdings plc is a pioneer in the fuel cell industry. If Ceres Power and its strategic partners are successful, Ceres Power could offer investors ample capital appreciation upside though we caution that this is a highly speculative name. Image Source: Ceres Power Holdings Plc – First Half of 2021 Interim Report IR Presentation By Callum Turcan We wrote about Ceres Power Holdings plc (CPWHF), a UK-based pioneer in the fuel cell industry focused on building up a commercially viable licensing and royalty business, back in February 2021 (link here). The company is an innovator in the solid oxide fuel cell (‘SOFC’) industry, led by its SteelCell technology, and more recently started pushing into the realm of … Read more

Dividend Increases/Decreases for the Week July 16

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Below we provide a list of firms that raised their dividends during the week ending July 16. 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 Agree Realty (ADC): now $0.217 per share monthly dividend, was $0.200. Ally Financial (ALLY): now $0.25 per share quarterly dividend, was $0.19. American Financial (AFG): now $2.00 per share special dividend, was $0.50. Bank of America Corporation Deposit Shs Perp Pfd Shs Series E (BAC.PE): now $0.2556 per share quarterly dividend, was $0.2472. Bank of New York Mellon (BK): now $0.34 per share quarterly dividend, was … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

ALERT: Raising Cash in the Newsletter Portfolios

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January 27, 2021 ALERT: Raising Cash in the Newsletter Portfolios We are raising the cash position in the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to 10%-20%. — By Brian Nelson, CFA — Our research has been absolutely fantastic for a long time, but 2020 may have been our best year yet. You can read the 2020 recap here. With the S&P 500 trading within our fair value estimate range of 3,530-3,920 (and the markets rolling over while showing signs of abnormal behavior), we’re raising the cash position in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to 10%-20%. — For more conservative investors, the high end of this range may even be larger, especially … Read more

Dividend Increases/Decreases for the Week October 16

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Below we provide a list of firms that raised their dividends during the week ending October 16. 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 A.O. Smith (AOS): now $0.26 per share quarterly dividend, was $0.24. Albertsons Companies (ACI): now $0.10 per share quarterly dividend. Avient (AVNT): now $0.2125 per share quarterly dividend, was $0.2025. Century Bancorp (CNBKA): now $0.16 per share quarterly dividend, was $0.14. Century Bancorp, Inc.B (CNBKB): now $0.07 per share quarterly dividend, was $0.06. Cummins (CMI): now $1.35 per share quarterly dividend, was $1.311. IDACORP (IDA): now … Read more