CSCO

Two Alerts and Bull Market On!

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By Brian Nelson, CFA It’s very hard not to be bullish on the stock market these days. The prudence exercised by many of the largest companies in the S&P 500 remains unprecedented, in our view. Some of the best companies out there have tremendous balance sheets, as evidenced by huge net cash positions. Perhaps two of our favorite companies, Microsoft (MSFT) and Facebook (FB) are the best examples of this, but Apple (AAPL) still retains quite the large net cash hoard as it works to net-cash breakeven. As we look at the next couple years, most investors will continue to focus on the Fed. We’ve seen this song and dance following the Great Financial Crisis (GFC) that wreaked havoc on … Read more

Top Ideas Doing Great

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Image Source: Aguayo Samuel By Brian Nelson, CFA Hi everyone: Hope you’re doing great. The S&P 500 (SPY) continues to roar higher. No longer is the market as easy of a call when we pounded the table near the bottom in April 2020, but we remain bullish on the backdrop. The economy remains very healthy, borrowing rates remain near all-time lows, and widespread interest in equities remains elevated given the paltry yields on alternatives such as investment-grade bonds. We continue to let our winners run, though we remain vigilant in protecting the downside. Quietly, the two top holdings in the Best Ideas Newsletter portfolio, Alphabet (GOOG) and Facebook (FB), have raced to outsized performance during 2021, advancing 43%+ and ~21% … Read more

ICYMI: Watch Valuentum’s November 2019 Presentation on ‘Value Trap’ Now!

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Watch Valuentum’s November 2019 Presentation on ‘Value Trap’ Now! — To view the November 2019 presentation of Valuentum’s book, Value Trap, please select the following link to continue: — https://www.youtube.com/watch?v=S-n9o9gYKdE&feature=youtu.be — — The November 2019 presentation to the Los Angeles chapter of the American Association of Individual Investors (AAII) of Valuentum’s President of Investment Research Brian M. Nelson’s new book, Value Trap, covers the pitfalls of valuation multiple analysis, traditional quantitative analysis (e.g., value factor, size factor) and the great contradiction between factor investing and the efficient markets hypothesis.  — The November 2019 presentation shows how enterprise valuation rests at the intersection of behavioral economics, quantitative theory, equity valuation and therefore finance itself. Nelson talks about how enterprise valuation can be used … 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

Cisco Systems’ Financials Remain Pristine, Growth Outlook Improving

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Image Shown: Shares of Cisco Systems Inc initially moved lower after the firm reported its latest earnings update and management provided near-term guidance that disappointed investors. However, shares of Cisco Systems quickly resumed their upward climb as the tech giant’s financials remain rock-solid. We continue to be huge fans of Cisco Systems. By Callum Turcan On May 19, networking hardware and enterprise software giant Cisco Systems Inc (CSCO) reported third quarter fiscal 2021 earnings (period ended May 1, 2021) that beat consensus top- and bottom-line estimates. The firm’s GAAP revenues grew by 7% year-over-year and its GAAP operating income moved higher by a little over 1% year-over-year, with its ‘Security’ offerings leading the way as that segment’s revenues grew by … Read more

Markets Back on Track – Seeking Net-Cash-Rich, Free Cash Flow Generators with Pricing Power!

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By Brian Nelson, CFA The past few trading sessions have tested the conviction of many equity holders, but we remain focused on the long run and believe the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, and the High Yield Dividend Newsletter portfolio (available to registered members of that publication) are well positioned for long-term capital appreciation potential, dividend growth potential, and sustainable high yield dividend income, respectively. During the trading session May 13, the Best Ideas Newsletter portfolio was led by some of our favorite net-cash-rich, free-cash-flow powerhouses. Moving convincingly higher, Apple (AAPL), Cisco (CSCO) and Microsoft (MSFT) have strong net cash positions on the balance sheet and generate impressive free cash flow well in excess of expected cash … 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

Following Up on Leading Semiconductor Equipment Supplier ASML Holding N.V.

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Image Source: ASML Holding NV – Fourth Quarter and Full-Year 2020 Earnings IR Presentation By Callum Turcan Shares of Netherlands-based ASML Holding NV (ASML), which supplies lithography systems and services to the semiconductor industry, have done incredibly well since we published our ASML Holding Is an Impressive Enterprise with a Pristine Balance Sheet and Rock-Solid Growth Trajectory article back on April 8, 2020 (link here). From April 8 to January 22, shares of ASML more than doubled. We strongly encourage members that have not done so to check out that article, as we laid out how ASML Holding’s lithography systems are an essential part of the semiconductor industry along with our reasoning behind why we view the company’s long-term outlook … Read more

Our Fair Value Estimate for Cisco Remains Unchanged at $51 Per Share

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Image Shown: Cisco Systems Inc continues to focus on rewarding shareholders by deploying its sizable free cash flows towards dividend payments and share repurchases. We are big fans of the tech giant. Image Source: Cisco Systems Inc – First Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On November 12, Cisco Systems Inc (CSCO) reported first quarter earnings for fiscal 2021 (period ended October 24, 2020) after the market close that beat both consensus top- and bottom-line estimates. Though its GAAP revenues and GAAP net income fell by 9% and 26% year-over-year, respectively, the market was assuming the worst given the headwinds Cisco is facing due to the coronavirus (‘COVID-19’) pandemic. More importantly, Cisco’s fiscal second quarter guidance … Read more