Study: Valuentum’s Best Ideas Newsletter Portfolio
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ICYMI: Valuentum’s Improved Stock and ETF Web Pages
Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more
Dollar General: A Model of Consistency
Dollar General’s fiscal 2017 marked its 28th consecutive year of positive same-store sales growth, and we couldn’t be more impressed with the consistency of its operational performance in the past three decades, as well as its share price performance since its addition to the simulated Best Ideas Newsletter portfolio. By Kris Rosemann Dollar General’s (DG) fiscal 2017 fourth quarter report, released before the open March 15, was full of reasons for investors to get excited, and its share price reacted accordingly. The company has been a model of consistency for nearly three decades, and it continues to have a significant runway for growth while simultaneously generating an attractive and growing free cash flow stream. Same-store sales grew 3.3% in the … Read more
The “Luck” and “Randomness” of Index Funds
Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.
Video: Quants! You’re NOT Measuring VALUE and Nelson’s Theory of Universal Value
President of Investment Research Brian Nelson defines the concept of universal value and shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, business-model related analysis. Value does not exist in respective process vacuums! Value is universal. Find out why. Running time: ~10 minutes. Tickerized for Valuentum’s stock and ETF coverage universe. Transcript Hi this is Brian Nelson from Valuentum Securities, and this is the tenth edition of a series that I call “Off the Cuff,” where I get in front of the camera and I talk for ten minutes. This is what we have to talk about today. We have to talk about this concept: The Theory of Universal Value. Value does not exist in vacuums … Read more
Target, Kroger Launch Counterattack on Amazon-Whole Foods; Industry Earnings to Shrink
Image Source: Valuentum The pricing war has begun, but it may take years before we see the final effects. Only the strongest may come out ahead, and only those already focusing on giving customers the very best value proposition at the lowest prices may retain share. By Brian Nelson, CFA The grocery store business is now on a path of significant change in the wake of news that Amazon (AMZN) would acquire upscale organic grocer Whole Foods (WFM). The online retailing giant has wasted little time in resetting the product pricing environment at Whole Foods, and we expect that other grocers will have to follow. The group had already been on high alert given recent language from Kroger (KR), suggesting … Read more
Amazon To Buy Whole Foods: Not Creative Destruction, Just Destruction
Image Source: Mike Mozart Amazon announced plans to buy Whole Foods. We’re viewing the news as affirmation of our decision to stay largely away from retail exposure in the newsletter portfolios. We think a bidding war for Whole Foods is possible, mostly to keep it and its real estate out of the hands of Amazon, potentially setting up for a true “winner’s curse” scenario. The winner will overpay. By Brian Nelson, CFA We’re not pleased, but then again, it’s okay. Amazon (AMZN) announced June 16 that it will buy high-end grocer Whole Foods (WFM) for $42 per share in cash. Though we mentioned that Amazon was expanding into the grocery store market anecdotally, we must say that it still is … Read more
Dollar General: 27 Consecutive Years and Counting
The dollar store industry is one that often flies under the radar of many investors that are looking for more glamorous ideas. However, the often-counter recessionary trends of their businesses coupled with unit proliferation makes them worthy of consideration, in our view. We like Dollar General the most. By Brian Nelson, CFA We added discount retailer Dollar General (DG) to the Best Ideas Newsletter portfolio April 13, “…2 New Additions to the Best Ideas Newsletter Portfolio.” The 75+ year old company that offers everything from food and snacks to cleaning supplies and clothing has more than 13,300 stores in 40+ states. Despite its already massive store base and a retail environment that remains in flux, fiscal 2016 marked its 27th … Read more
Valuentum’s 3 Breakthroughs in the Field of Finance and More
Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more
Trash As A Source of Cash and 2 New Additions to the Best Ideas Newsletter Portfolio
Image Source: thetaxhaven We’re making a number of adjustments to the Best Ideas Newsletter portfolio. By Kris Rosemann and Brian Nelson, CFA It’s time to take out the trash… that is, trash hauler Republic Services (RSG) from the Best Ideas Newsletter portfolio (it’s not “trash” – it’s actually a fantastic company and has been a great stock, but boy is it pricey now). We’re also adding ~1.5% positions in two new ideas, Dollar General (DG) and Verint Systems (VRNT), in the Best Ideas Newsletter portfolio as both have attractive valuations, in our view. Dollar General’s 27 consecutive years of same-store-sales growth are impressive, and Verint is now at the low end of its short-term uptrend, offering an interesting entry point … Read more