GOOGL

A “Terrible” Negative Alpha-Generating “Trade” and More

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Let’s walk through some of the news before the Thanksgiving holiday, and one of the bigger missteps we made during 2017. By Brian Nelson, CFA I’d like to run through the news before many of you take a break for the Thanksgiving holiday. Thanks again for your attention. It means the world to our team that you see and understand the things that we’re doing, the great calls we make with our top-weighted ideas (see here and here), the extensive valuation processes we perform with respect to the discounted cash-flow process (see here), and how we provide that in downloadable pdf form (see here) – and we’re here to talk about our expectations! You can get reports from anybody, of … Read more

How Have Our “Best Ideas” Performed During 2017?

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The top-weighted ideas are getting the job done, while we avoided one of the biggest missteps in all of 2017. We’ve had better years, but 2017 was still a great one. Key takeaways: 1) “The top-weighted ideas in the Best Ideas Newsletter portfolio, Apple and Visa, performed wonderfully from the release of the December 2016 newsletter through November 13, 2017, averaging more than an increase of 45%, excluding dividends, versus a mid-teens percentage advance for the S&P 500, excluding dividends.” 2) “The weighting concept within a portfolio context is an important one because, as a portfolio manager adds more and more ideas to the portfolio, the next best idea is just that–the next best one–so the probability of diluting portfolio … Read more

Subscribe Now to NEW High Yield Dividend Newsletter! Earnings Reports Rolling In…

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Update: $400/year offer no longer available. ———- You have to read about our NEW High Yield Dividend Newsletter. Let’s cover that, and three key earnings reports that are driving the market to new heights October 27. By Brian Nelson, CFA I am excited about the rapid pace of new subscribers to the NEW High Yield Dividend Newsletter and accompanying simulated high-yield dividend portfolio. On the basis of the current sign-up rate, I don’t think the introductory savings will last much longer than this weekend. Please be sure to look into locking in the savings now. The annual cost of the NEW High Yield Dividend Newsletter is $400/year to the first 100 members (offer no longer available, but you can sign … Read more

General Motors Is Off to the Races!

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Image Shown: GM’s shares are breaking out. GM’s stock has been out of favor for years, but with an attractive price-to-earnings ratio and healthy dividend yield, is the market finally coming around to the company’s tremendous potential? By Brian Nelson, CFA General Motors’ (GM) share-price performance has been an enigma. The automaker’s price-to-earnings multiple is less than half and its dividend yield is more than double that of the average S&P 500 company, and we thought it was only a matter of time that the company’s share price would break out. There can only be so much time before market anomalies are closed, and GM was a big one. We wrote the following September 7, “Why Won’t GM Break Out … Read more

Discovery-Scripps Joining Forces to Take on the Changing Digital Media Landscape

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Image Source: Lwp Kommunikáció Discovery Communications has agreed to acquire Scripps Networks, but will it be enough for the two to remain competitive in the rapidly evolving–and consolidating–media landscape? By Kris Rosemann The cable TV industry is not what it was only a few short years ago, and Discovery Communications (DISCA) finally getting its hands on the assets of Scripps Networks (SNI) is only further evidence of this. Both companies have had a relative amount of success in delivering compelling programming to targeted audiences in years past via traditional pay-TV channels, but the days of tuning in to Shark Week on The Discovery Channel through your local cable provider are fading fast. The cord-cutting revolution is one that has been well-covered … Read more

Alphabet’s Financial Health Unfazed By European Commission Fine

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Image Source: Open Grid Scheduler Alphabet’s second-quarter results revealed a one-time charge that made headlines, but the fine is a drop in the bucket when considering the size of Google’s balance sheet and free cash flow generation. By Brian Nelson, CFA Shares of Alphabet (GOOG, GOOGL), the company formerly known as Google, sold off following the release of its second-quarter report July 24. We’re not making much of the market’s negative reaction to a quarter that revealed 23% year-over-year revenue growth (on a constant-currency basis) and earnings per share north of $5, both the top line and bottom line coming in above Street consensus expectations. Adjusting for the widely-publicized European Commission (EC) fine of $2.7 billion*, which Alphabet accrued in the … Read more

eBay Up 50%+ Since Nelson’s Open Letter to Yahoo CEO

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In February 2016, President of Investment Research at Valuentum penned an open letter to Yahoo’s CEO Marissa Mayer. In it, he said a combination of Yahoo-eBay would be substantially value-creating for shareholders. eBay’s stock has advanced 50%+ since that letter. By Valuentum Analysts We don’t write letters to CEOs often, but when we do, we have good reason. In February 2016, Yahoo (YHOO) had been under major pressure to monetize its stake in Alibaba (BABA), and CEO Marissa Mayer had faced continuous and tremendous criticism during her tenure. Working under the assumption that Yahoo wanted to monetize its stake in Alibaba at that time and put cash to work, President of Investment Research at Valuentum Brian Nelson wrote in an … Read more

Alphabet, Intel, MLPs and More

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Let’s keep the good times going, would you say? Brian Nelson, CFA The good news during this first-quarter earnings season hasn’t let up, and we must say we’re very happy to say so. Newsletter portfolio holdings, our favorite ideas at any time, continue to exceed expectations. The Valuentum Buying Index helps us identify new ideas to consider, while the Dividend Cushion ratio helps us avoid dividend cuts. The Economic Castle rating helps us identify the best economic value-creators across our coverage universe. All three of these metrics (and our opinions on many more, including fair values/ranges and the like) you can’t find anywhere else but at Valuentum. We don’t leave any stones unturned when it comes to investment analysis. In … Read more

Intel Makes Strong Move into Autonomous Driving

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Image Source: Intel Newsletter portfolio holding Intel has agreed to acquire Mobileye, a leading provider for computer vision for Advanced Driver Assistance Systems (ADAS), for $15.3 billion in cash. “…we like what the deal brings for Intel. The company has effectively cut ties with its history as a PC chip behemoth, and is driving ahead full force into the broader connected devices market. The acquisition puts Intel at the forefront of the autonomous driving market, and its ownership of end-to-end solutions in the space not only gives it competitive advantages in the driverless car market, but also in the adjacent data center market.” — Kris Rosemann By Kris Rosemann Fresh off of a fourth quarter that its CEO called “a … Read more

Nelson’s Earnings Roundup: GOOG(L), PYPL, INTC

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Image Source: Aaron Fulkerson Let’s get President of Valuentum Brian Nelson’s quick thoughts on the earnings reports of Alphabet, Paypal, and Intel, all very important holdings in the newsletter portfolios. By Brian Nelson, CFA Alphabet The Mountain View, California-based Internet search giant continues to do a lot of things right. CFO Ruth Porat called the top-line growth in the fourth-quarter results of the company formerly called Google “exceptional.” Alphabet (GOOG, GOOGL) is the lifeblood of the Internet, and consumers every day consult Google with their innermost questions and sometimes deepest thoughts and concerns (looking for answers). It will remain a core aspect of our lives, as core as the most innate possessions of those that use it. During the quarter, … Read more