FIT

How Some Members Use Valuentum’s Investment Services

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By Brian Nelson, CFA Thank you for your membership to Valuentum. We serve a wide variety of investors, including dividend growth investors, value investors, and pure Valuentum investors, among others. Many different types of investors and professionals use our research and financial analysis in a whole host of applications from individual stock-selection to the evaluation of closed-end funds to an overlay in a money-management setting and beyond. We wanted to make sure that you know that, if you’re a dividend growth or income investor, that there are others that use our website to utilize the Valuentum process, fair value estimates and other metrics. Similarly, if you’re a practitioner of the Valuentum system, I wanted to make sure that you are … Read more

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

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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

Peloton Makes a Bet on US Manufacturing

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Image Shown: Shares of Peloton Interactive surged higher during 2020. The firm recently announced it would acquire an exercise equipment manufacturer based in the US. As demand for Peloton’s products has been incredibly strong of late, the firm has had trouble keeping up, which in turn has led to delayed deliveries of its “premium” exercise bikes. This acquisition is expected to help alleviate those concerns. By Callum Turcan The exercise bike and digitally-oriented exercise training service provider Peloton Interactive Inc (PTON) announced it was acquiring Precor, an exercise equipment manufacturer, for $420 million in cash (before closing adjustments) on December 21. Peloton aims to complete the transaction by early 2021 (calendar year), and by the end of 2021, the goal … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

24 in a Row! Order the Exclusive Today!

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Image Source: An excerpt from the March 2020 edition of the Exclusive publication. Valuentum offers commentary across the capital stack in the Exclusive publication. In the Exclusive publication, Valuentum highlights three new ideas each month to consider, one for income, one for capital appreciation, and a “short” idea consideration (all three outside our existing coverage universe). Fresh, underfollowed and new ideas — outside our coverage universe — every month! Nothing is held back.  Big Winners Backed by In-Depth Theses Since the monthly Exclusive was first published in July 2016, Valuentum’s mission with the publication has been to produce an unmatched newsletter that delivers ideas with high success rates and ones backed by in-depth theses across the three key themes: income, … Read more

Apple: Innovation Versus Improvements

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Image Source: Valuentum Apple’s 2017 iPhone event took place September 12, and it was one of the most highly anticipated of such events. Let’s take a look at what improvements are being made and how they might impact our thesis on the tech giant. By Kris Rosemann Newsletter portfolio holding Apple (AAPL) has made a spectacle of its annual iPhone event in which it reveals the most recent improvements it makes to its flagship product, as well as other new products and features across its lineup. This year’s event, which took place September 12, was one of the most highly-anticipated events in the iPhone’s 10-year history, due in large part to the anticipation surrounding the iPhone X (iPhone 10 in … Read more

Apple Pushing for Growth in Healthcare and Corporate IT

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By Kris Rosemann Late September brought two announcements from Apple (AAPL) that should bode well for demand for its mobile devices and wearable technology and add to the reach of its ecosystem of apps. On September 28, the firm announced a partnership with consulting firm Deloitte & Touche to form a service called ‘EnterpriseNext’ in which Deloitte is creating a service with over 5,000 strategic advisors focused on helping businesses maximize the effectiveness of their use of iOS with iPhones and iPads. Deloitte CEO Punit Renjen pointed to his company’s use of Apple products, and 75 custom apps, as a core driver behind the deal. Deloitte will not only offer consulting services across more than 20 industries but will also … Read more

Garmin Navigating Competitive Pressures

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By Kris Rosemann Little has changed at Garmin (GRMN) as of late from an operational standpoint. The lion’s share of the pressures weighing on the company’s shares are external forces, in our opinion. The firm is executing soundly, and recent product launches were key drivers of improved results through the first half of 2016 and gave management the confidence to raise its top- and bottom-line guidance for full-year 2016. Free cash flow generation has rebounded nicely thus far in 2016 as well. Through the first six months of the year, the company reported free cash flow of more than $250 million, compared to free cash flow generation of -$55 million (negative $55 million) in the comparable period of 2015. Garmin … Read more

Apple: Nowhere To Run, Nowhere To Hide

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By Brian Nelson, CFA Today’s stock market is a difficult one. That Apple (AAPL) is selling off after disappointing fiscal second-quarter results is unfortunately no surprise to us, “Apple Will Go Lower… And It Will Be ‘Forced’ Into Acquisitions (January 2016).” There may be “nowhere to run, nowhere to hide” for market participants seeking full exposure to equities. Unfortunately, it’s no consolation to the reader that missed our profit-taking alert in Apple a few months ago, and our discussion to take even more shares off the table “Looking To Trim Apple… (December 2015).” In August 2015, we removed one third of the position in Apple from the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio at $108.92 for a … Read more

Debt, Debt and More Debt

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Image Source: Michael Fleshman Many readers may be familiar with the rhetoric of the Presidential Election Cycle of 2016 and Democratic hopeful Bernie Sanders’ view on making “college tuition free and debt free.” You can take a read of the 6 steps Bernie will take as president to make college debt-free here. Many may find his last point rather intrusive to the heartbeat of the American economy and the driver behind innovation and standard-of-living improvements, but we’ll leave that conversation for another day. But what’s the shocking statistic, right? Get this – and I hope you are sitting down. According to an article by the Journal, “more than 40% of Americans who borrowed from the government’s main student-loan program aren’t … Read more