EAR

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

by

Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Stock Market Outlook for 2021

by

By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Dow Laggard Walgreens Boots Alliance Yields North of 5%; Has Raised Dividend for 47 Consecutive Years

by

Image: Walgreens Boots Alliance’s shares have been pummeled during 2022. Image Source: TradingView By Brian Nelson, CFA When Walgreens Boots Alliance (WBA)–forward estimated dividend yield of ~5.3%– reported first-quarter fiscal 2023 results January 5, operating performance wasn’t pretty. Sales from continuing operations dropped 1.5% in the quarter, while adjusted earnings per share fell 30.8% to $1.16 per share due to weakness at AllianceRX Walgreens from difficult comps related to COVID-19 vaccines. Its predecessor company, Walgreen Co., used to be a clean “story.” Then, the firm bought Alliance Boots several years ago, and shares have languished for the better part of a decade now, after completing that transaction. Dealmaking, a dwindling stake in AmerisourceBergen (ABC) and liabilities related to the opioid … Read more