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2015 Marks Record Year for US Auto Industry

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The US auto industry set a sales record in 2015, as the largest automakers finished the year on a high note and pushed the full-year sales tally above the 17.4 million units sold mark set in 2000. 17.5 million light-vehicle sales were made in the US in 2015, which represents an increase of nearly 6% from 2014. December’s unit sales growth rate of 8.9% was one of the highest marks of any month during the year. December was a strong month for each of the major automakers in our coverage universe, as the lowest unit sales growth rate among the group was the 5.7% growth reported by General Motors (GM). Fiat Chrysler (FCAU) reported the highest growth in the month … Read more

General Motors Cuts Guidance on Higher Input Costs

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Simulated newsletter portfolio idea General Motors cut its full-year guidance due to higher than expected commodity cost increases and devaluation of key currencies in South America. Peers Ford and Fiat Chrysler also lowered 2018 guidance measures following a tough second quarter for the group. By Kris Rosemann The July 25 trading session was a tough one for simulated newsletter portfolio idea General Motors (GM) as it faced meaningful external pressures on its business and lowered guidance for 2018. Greater-than-expected impacts from rising commodity prices and currency devaluations in Brazil and Argentina were the primary drivers behind the guidance cut. However, some of those pressures may be easing as President Trump has reportedly agreed to work with the European Commission in … Read more

VIDEO/TRANSCRIPT: 2021 Valuentum Exclusive Call: Inflation Is Good

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Valuentum’s President Brian Michael Nelson, CFA, explains why investors should not fear inflation, why government agencies such as the Fed and Treasury are prioritizing something other than price discovery, why the 10-year Treasury rate is a must-watch metric, and why Valuentum prefers the moaty constituents in large cap growth due to their net cash rich balance sheets, tremendous free cash flow generating potential, and secular growth tailwinds. Transcript: << Valuentum’s Best Ideas On behalf of the Valuentum team, I’d like to present to you our prepared remarks for the Valuentum Exclusive conference call for 2021. It is both an honor and a privilege to share our team’s work with you, and I personally am very grateful for your continued interest … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Investing Versus Speculating: Ford, GM, Tesla

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Ford is making some changes at the top, but we still like General Motors. Tesla’s stock remains “uninvestable,” in our view. By Brian Nelson, CFA There are many definitions of investing and speculating that run the gamut from the views of investor Benjamin Graham to famed trader Jesse Livermore, but I have rather simple definitions of investing and speculating. Investing involves estimating a company’s intrinsic value and buying a stock when one thinks the price is far below intrinsic value and holding that security until price reaches intrinsic value, or through the high end of an informed fair value range, for example. This definition of investing and the art of intrinsic value estimation are core and vital to the Valuentum … Read more

Why Analytical Experience Matters

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Risky industrial cyclicals and recovering banks were the theme behind Bloomberg’s Dividend Tip Sheet, released June 18. We applaud the news outlet’s efforts to put together such a list, but a quick look speaks to the importance of focusing on sustained dividend growth – not just growth alone. A number of these firms will likely fall short of their dividend growth targets in coming years, and some—namely the airlines—will likely have to retract dividend payments within the next decade or so. Income investors have the dual need of income and growth, and this list is lacking in the former. Most constituents on this list yield less than 2%, and out of the four that yield greater than 2% (on a … Read more

There Is Milk At The Store

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This article first appeared in the September edition of the High Yield Dividend Newsletter. For more information about this publication, please see here. “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” — Winston Churchill By Brian Nelson, CFA Very few of us could have imagined that we’d witness the bull market that began on that fateful day in March 2009 that might very well mark a generational low. In 2009, major investment banks around the globe were struggling to survive, and the fallout in the mortgage markets left the banks holding paper that nobody wanted to own, let alone buy. The global financial system … Read more

Our Thoughts on the Widespread Launch of 5G Services

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Image Shown: The evolution of wireless networks and telecommunications technology over the years. Image Source: Intel Corporation – November 2019 State of 5G Presentation  By Callum Turcan The rollout of 5G telecommunication networks is upon us and we want to draw our members’ attention to some of the key companies with meaningful exposure to this space. Many are excited about what opportunities 5G technology could enable. Background On July 23, AT&T Inc (T) announced its 5G network in the US was operational nationwide and that effective August 7, both consumers and businesses with certain packages would have 5G access “at no additional cost” which included customers with AT&T Unlimited Starter, Extra, Elite, AT&T Business Unlimited Web-Only and Starter wireless plans. … Read more