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The Intricacies of the Valuentum Process

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Let’s take a quick overview of the Valuentum processes for capital appreciation and dividend growth with a discussion of how we use the Valuentum Buying Index and the Dividend Cushion ratio. By Brian Nelson, CFA There is a lot behind the Valuentum processes for capital appreciation and dividend growth, respectively, and both the criteria for inclusion to either the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio are different. Our best ideas at any time, however, are always included in the simulated newsletter portfolios. We use our research as a means to identify new ideas for consideration in the simulated newsletter portfolios, as well as to consider removing ideas from the simulated newsletter portfolios. As it relates to … Read more

Catching the Bottom?

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Image shown: The depths of how far the S&P 500 (SPY) has fallen more recently, and the timing of the decision to move to being “fully invested” in simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio.   No Changes to Simulated Newsletter portfolios. This article was sent to members via email January 9. That email can be found at the link that follows this article. By Brian Nelson, CFA On the evening of December 26, we emailed members that we were moving to “fully invested” in both the simulated Best Ideas Newsletter and simulated Dividend Growth Newsletter portfolio. First of all, please let me apologize. I wanted to stay in front of members during one of the most volatile times … Read more

Markets Up Big; Upside Volatility

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Image shown: The S&P 500 ETF (SPY) since August 2017. The index has broken through support and is now bouncing back to resistance. By Brian Nelson, CFA Good morning everyone, Are you watching these markets? This is incredible. The Dow finished down 660 points yesterday (briefly dropping 700 points), and today, the Dow is currently trading up 600 points at the time of this writing. Granted, there was Apple’s (AAPL) poor first-quarter 2019 guidance yesterday and the strong jobs report today, but this volatility is not “normal,” no matter what others are saying. A couple announcements up front. For those that already ordered our book Value Trap, I will send you the pdf download to your email address just to make sure … Read more

Valuentum Stock Screeners

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This article was sent to members via email December 29. That email can be accessed at the link that follows this article. By Brian Nelson, CFA Hi everyone, I wanted to provide an update with respect to Valuentum’s stock screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, or data that is important with respect to the investment decision-making process. We publish screens in each of the monthly newsletters, but we also provide a basic weekly screener for download on the left column of the website, “Download Weekly Stock Screener (xls) — login required.”   We also have other products. The more robust DataScreener, for example, is part of the quarterly Financial … Read more

Market Looks Vulnerable

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Image Source: TradingView.com This article was sent to members via email December 20. You can access that email via the link that follows this article. By Brian Nelson, CFA Hi everyone, It’s time to start thinking about portfolio protection. It looks like the S&P 500 broke below technical levels, and I would not be surprised to see heightened volatility heading into the close of this year into next. This December has been one of the worst months in history, but I feel like 2019 may become one of our worst years in history. That doesn’t mean you should panic, but you should reset your expectations lower. This market is looking treacherous. Just when it looked like Facebook (FB) was getting … Read more

Market Mayhem — Alerts for Members

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During these extremely volatile times, it’s important to stay focused. On December 15, we informed all of our members to “Pay Attention.” Shortly thereafter, we notified members of the potential for a stock market technical breakdown. This morning, we offered a pre-market briefing about the importance of thinking about portfolio protection. For Best Ideas Newsletter and Dividend Growth Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=e2406cd6-c113-4344-8731-493f33fc44a4&id=preview For High Yield Dividend Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=b3ba530f-38b3-489a-ac96-2961dca89c6b&id=preview For Exclusive members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=ba6d90c0-4433-48b2-9b8a-aac4ddf9006e&id=preview We’re here for any questions. Please just let us know how we can help! Kind regards, Brian Nelson, CFA  brian@valuentum.com

Facebook to Test New Ad Feature

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Image Shown: Facebook’s share price performance since late 2017. Shares may be poised to breakout of a recent downtrend. Source: TradingView.com Facebook has faced significant pressure from a number of sources in recent months, but we continue to like the stock, which may be poised for a technical breakout and appears undervalued. By Kris Rosemann It’s no secret that simulated Best Ideas Newsletter portfolio idea Facebook (FB) has been working to right the ship while under an intense level of scrutiny from a variety of sources. The company has been caught in perhaps an unprecedented culmination of social and political pressures, but these are unprecedented times. We continue to like shares of Facebook due to the robust free cash flow … Read more

Facebook Reportedly Seeking Major Cybersecurity Acquisition

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Image Source: Book Catalog After criticism surrounding its user safety and security practices, social media giant Facebook is reportedly actively pursuing a cybersecurity company to acquire.  By Kris Rosemann Simulated Best Ideas Newsletter portfolio idea Facebook (FB) has struggled of late with public perception of the both the security and policing of its user base, and management appears seriously concerned with assuaging public pressure as it ramps up spending on such initiatives, which will continue to eat into operating margins and weighed on free cash flow generation. Mid-October reports of users’ personal data being exposed via a security flaw may have been a tipping point for the company, which came months after the widely-publicized Cambridge Analytica scandal, but public and political … Read more

Facebook Reports 2+ Billion Daily Users Across Its Platforms

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Image Source: Book Catalog After a rough stretch for shares, Facebook’s third quarter report has helped breathe some life into the stock as the company continues to grow at a robust double-digit rate and free cash flow generation remains superb. By Kris Rosemann Shares of simulated Best Ideas Newsletter portfolio idea Facebook (FB) have faced significant selling pressure since its second quarter report that indicated it would be taking a number of self-enforced measures that would severely impact its operating margin, but a third-quarter report that included a slight near-term cost and capital spending guidance reduction has breathed some life into shares. We think the company may have given in to political pressures, but we continue to have confidence in … Read more

Netflix’s Strong Subscriber Growth and Sizable Cash Burn Continue

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Image Source: NodStrum Tech Streaming giant Netflix continues to grow its subscriber base at an impressive rate as it works to achieve sufficient levels of operating leverage, but its free cash flow burn is as significant as ever as financial obligations mount.  By Kris Rosemann Shares of market darling Netflix (NFLX) were boosted in the October 17 trading session by strong subscriber growth guidance and better-than-expected profit generation in its third quarter report, released October 16, though management noted a portion of that profit generation was due to marketing costs being pushed in the fourth quarter. Paid net additions came in at 6.07 million in the third quarter, and total paid memberships sat at 130.42 million at the end of the … Read more