HON

10 YEARS OF EXCELLENCE AT VALUENTUM

by

Tickerized for the DIA. ———- About Our Name But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.                          — Warren Buffett, Berkshire Hathaway annual report, 1992 At Valuentum, we take Buffett’s thoughts one step further. We think the best opportunities arise from an understanding of a variety of investing disciplines in order to identify the most attractive stocks at any given time. Valuentum therefore analyzes each stock across a wide spectrum of philosophies, from deep value through momentum investing. And a combination of the … Read more

Two Alerts and Bull Market On!

by

By Brian Nelson, CFA It’s very hard not to be bullish on the stock market these days. The prudence exercised by many of the largest companies in the S&P 500 remains unprecedented, in our view. Some of the best companies out there have tremendous balance sheets, as evidenced by huge net cash positions. Perhaps two of our favorite companies, Microsoft (MSFT) and Facebook (FB) are the best examples of this, but Apple (AAPL) still retains quite the large net cash hoard as it works to net-cash breakeven. As we look at the next couple years, most investors will continue to focus on the Fed. We’ve seen this song and dance following the Great Financial Crisis (GFC) that wreaked havoc on … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

by

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Markets Back on Track – Seeking Net-Cash-Rich, Free Cash Flow Generators with Pricing Power!

by

By Brian Nelson, CFA The past few trading sessions have tested the conviction of many equity holders, but we remain focused on the long run and believe the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, and the High Yield Dividend Newsletter portfolio (available to registered members of that publication) are well positioned for long-term capital appreciation potential, dividend growth potential, and sustainable high yield dividend income, respectively. During the trading session May 13, the Best Ideas Newsletter portfolio was led by some of our favorite net-cash-rich, free-cash-flow powerhouses. Moving convincingly higher, Apple (AAPL), Cisco (CSCO) and Microsoft (MSFT) have strong net cash positions on the balance sheet and generate impressive free cash flow well in excess of expected cash … Read more

Honeywell Reaffirms Outlook, Dividend Looks Great

by

Image Source: Honeywell – J.P. Morgan Industrials Conference Presentation By Brian Nelson, CFA On Monday, March 15, Honeywell International (HON) reminded us why it is one of our favorite industrial ideas. The firm presented at J.P. Morgan’s Industrial Conference, and we liked what management had to say. Honeywell was a recent addition to the Dividend Growth Newsletter portfolio, and here’s our thoughts on the industrials giant November 27 and the view we still hold today: With GE’s (GE) fall from grace years ago, Honeywell has taken the reigns as one of Valuentum’s top industrial ideas. Though Honeywell’s valuation is not attractive as we’d like it to be at the moment, we recently raised our fair value significantly to north of … Read more

Two Industrial Giants on the Rebound

by

Image Source: Honeywell International Inc – Fourth Quarter of 2020 IR Earnings Presentation By Callum Turcan Two industrial bellwethers reported fourth quarter earnings for 2020 recently, Caterpillar (CAT) and Honeywell (HON). Industrial companies were hit extremely hard by the coronavirus (‘COVID-19’) pandemic last year due to a myriad of factors from production lines getting shut down to deteriorating end-user demand, though things are starting to improve as global health authorities steadily work towards putting an end to the public health crisis now that vaccine distribution activities are underway. Both industrial firms covered in this note mentioned that they expect their financial and operational performance to improve going forward. Caterpillar (CAT) When Caterpillar Inc reported fourth quarter earnings for 2020 on … Read more

ALERT: Raising Cash in the Newsletter Portfolios

by

January 27, 2021 ALERT: Raising Cash in the Newsletter Portfolios We are raising the cash position in the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to 10%-20%. — By Brian Nelson, CFA — Our research has been absolutely fantastic for a long time, but 2020 may have been our best year yet. You can read the 2020 recap here. With the S&P 500 trading within our fair value estimate range of 3,530-3,920 (and the markets rolling over while showing signs of abnormal behavior), we’re raising the cash position in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to 10%-20%. — For more conservative investors, the high end of this range may even be larger, especially … Read more

Honeywell Is a Tremendously Resilient Enterprise and a Rock-Solid Dividend Payer

by

Image Shown: Honeywell International Inc expects its financial performance will post a significant rebound in 2021. Please note this guidance assumed a safe and viable COVID-19 vaccine would get distributed by early-2021, though distribution activities started before then in December 2020, which supports Honeywell’s near-term outlook. Image Source: Honeywell International Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan We added one of our favorite industrial stocks Honeywell International Inc (HON) to the Dividend Growth Newsletter portfolio on November 27 (link here) as the firm’s operational and financial performance has proven to be incredibly resilient in the face of the ongoing coronavirus (‘COVID-19’) pandemic. As global health authorities begin to put an end to the pandemic, aided … Read more

Adding 5 Dividend Growth Gems to the Newsletter Portfolio!

by

Image Source: Mike Cohen By Valuentum Analysts We are adding five dividend growth gems to fill the ~10% cash allocation in the simulated Dividend Growth Newsletter portfolio that came from removing Intel (INTC) a number of weeks ago. Each gem will be allocated at a 2% weighting. The changes will be reflected in the upcoming December edition of the Dividend Growth Newsletter (see archives), which will be released December 1. Here are the five additions: Qualcomm, Inc. – 2% weighting Qualcomm (QCOM) has revolutionized the mobile phone industry. Through its own R&D and through partnerships with other firms, the company develops breakthrough technology and then licenses it. The firm has one of the strongest Economic Castles in our coverage. We … Read more

Boeing’s Financials Are Absolutely Frightening

by

By Brian Nelson, CFA On November 18, 2020, Boeing (BA) announced that the US Federal Aviation Administration (FAA) withdrew its order that had grounded its 737-8s and 737-9s (737 MAX) that had been involved in two terrible accidents during the past few years, a Lion Air flight that killed 189 people and an Ethiopian Airlines jet crash that claimed the lives of 157 more. We’ll never forget these tragedies and the impact on the families and the aviation industry, more generally.   In January 2017, we had added Boeing to the Dividend Growth Newsletter portfolio, but we had removed it March 16, 2018, prior to the unfortunate and high-profile accidents that occurred several months after. During the short time it … Read more