INTC

2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio!

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2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio! — Summary: — We estimate thus far the Best Ideas Newsletter portfolio return has beat the S&P 500 by 2.8 percentage points during 2019 (34.4% versus 31.6% for the S&P 500, as measured by the SPY). — Our move to overweight Apple, Facebook, and Visa worked out wonderfully for members during 2019. We continue to overweight big winners, and we credit this to our team’s conviction in our very best ideas. —  We also made quite the savvy move in rolling over a solid gain in Chipotle (60%+) into even more shares of Apple stock during the year. We’re putting some of the best ideas right in front of … Read more

Cisco, Intel, Johnson & Johnson, and PayPal in the News

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By Callum Turcan and Brian Nelson, CFA In alphabetical order by ticker symbol: CSCO, INTC, JNJ, PYPL Cisco Systems Inc (CSCO) announced on December 16 it was acquiring Exablaze, and the deal is expected to be completed in the third quarter of Cisco’s fiscal 2020. Financial terms weren’t disclosed. For reference, Cisco’s first quarter of fiscal 2020 ended on October 26, 2019. Australian-based Exablaze offers services to high-frequency traders by designing and manufacturing “advanced network devices aimed at reducing latency and improving network performance” and Cisco plans to integrate Exabalze’s technology into its own offerings. That will allow Cisco to offer its customers better field programmable gate array (‘FPGA’) technology and beyond high-frequency trading, there’s plenty of room for upside … Read more

As Expected, Broadcom’s Organic Revenues Didn’t Grow in Fiscal 2019

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Image Source: Broadcom Inc – November 2019 IR Presentation By Callum Turcan On December 12, Broadcom Inc (AVGO) reported fourth quarter earnings for its fiscal 2019 (period ended November 3, 2019). While GAAP revenues for the full fiscal year were up 8% year-over-year, hitting $22.6 billion, please note that includes the uplift from Broadcom acquiring CA Technologies. Shares of AVGO initially traded down 2%-3% on December 13, as investors digested the firm’s guidance for fiscal 2020. As of this writing, shares of AVGO yield 3.4%. Overview of Recent Events Management expects the company’s revenues in fiscal 2020 will come in at ~$25.0 billion (give or take $0.5 billion in either direction) while Broadcom’s adjusted EBITDA is forecasted at ~$13.75 billion … Read more

Apple Charging Higher

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Image Shown: Shares of Apple Inc continue to climb higher and we like the name in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. This is a long-term holding with substantial potential capital appreciation and dividend growth upside. By Callum Turcan Apple Inc (AAPL) is a top holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, with shares of AAPL yielding ~1.1% as of this writing. The top end of our fair value range estimate for shares of AAPL sits at $280, decently above where shares are trading at as of this writing. Considering the favorable technicals Apple has experienced of late, we see substantial room for shares to move higher still. Please keep in … Read more

Intel’s Resilient Free Cash Flows and Improving Outlook

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Image Shown: Shares of Intel Corporation have resumed their upward climb after stumbling during the middle of 2019. We continue to like the name in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. By Callum Turcan Intel Corp (INTC) is another one of our favorite companies and is included in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. After coming under fire during the middle of 2019, INTC is back on a nice upward trajectory. The top end of our fair value range estimate sits at $61 per share of INTC, indicating there’s plenty of room for Intel to run higher. Shares of INTC yield 2.2% as of this writing, and we view the company’s dividend … Read more

Economic Commentary: Marks, Dalio, and the Discount Rate

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Image Source: Mike Cohen We sat down with the Valuentum team to discuss their latest thoughts on recent economic developments. To kick off the conversation, let’s start with the team’s views on the latest memo from Oaktree’s Howard Marks: Mysterious. For those that don’t know Howard, he is the Director and Co-Chairman of Oaktree, which managed about $122 billion in AUM, as of September 2019. The memo goes into depth on the reasons for negative interest rates, the impact of negative interest rates, and opines on whether the US will ever see negative interest rates. Then, we’ll go from there! Brian Nelson: The concept of negative interest rates is not merely academic, but they have far-reaching implications across the global … Read more

Intel Still One of Our Favorite Ideas

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Image Source: Intel Corporation – August 2019 IR Presentation By Callum Turcan A holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, shares of Intel Corporation (INTC) have been on a strong upward tear since August. We continue to like the company as it appears shares of Intel are converging towards the top end of our fair value estimate range ($61 per share), with INTC trading at roughly $58.50 per share as of this writing. Looking ahead, Intel’s solid 2.1x Dividend Cushion ratio provides support for a quality dividend growth story (we rate Intel’s Divided Growth trajectory as EXCELLENT), and shares of Intel yield ~2.2% as of this writing. Image Shown: Shares of Intel appear to be … Read more

Nostalgia?

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Valuentum’s November Dividend Growth Newsletter! Image shown: Valuentum’s Dividend Growth Newsletter portfolio. Since inception, the newsletter portfolio has *never* had a constituent that experienced a dividend cut. We moved to weighting ranges beginning in 2018.— Today is Dividend Growth Newsletter day!  — As I think back over the many years we’ve managed the Dividend Growth Newsletter portfolio, it has been an incredibly rewarding experience to be able to help so many dividend growth investors, not only in finding big winners, but also in avoiding big losers. If you recall, many dividend growth investors were swept away by the MLP craze years ago, and we saved our membership, perhaps in impeccable fashion. Who remembers? — From “getting out” of General Electric … Read more

Portfolio Holdings Intel and Visa Hit It Out of the Park

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Image Shown: Shares of Intel Corporation leapt higher on Friday October 25 as the market digested its solid earnings report and guidance for this quarter. By Callum Turcan Intel One of our favorite Dividend Growth Newsletter and Best Ideas Newsletter portfolios holdings, Intel Corporation (INTC), posted third quarter fiscal 2019 earnings (period ended September 28) on October 24 that handily beat consensus top and bottom line estimates. Revenue in the third quarter on a GAAP basis came in at $19.2 billion, flat year-over-year, which management noted was $1.2 billion higher than guidance issued out in July. This outperformance was driven by Intel’s ‘data-centric’ offerings, with sales up 6% year-over-year, as Intel Xeon processors for data centers sold well. Additionally, Intel … Read more

Economic Commentary: Robots, Value Trap, and Politics on the Markets

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Tickerized for stocks in the DIA. Valuentum sat down for the latest installment of its periodic economic commentary, and the team tackled a wide array of topics, from robots on Wall Street, to President of Investment Research Brian Nelson’s new book Value Trap, to political influence on the markets and boyond. Let’s set the stage with a prompt from a recent Bloomberg article, “The Master of Robots…Coming for Wall Street:” “The problem is, computer-powered strategies are struggling to live up to the hype, with a Eurekahedge index of AI hedge funds lagging peers in recent years. That spells opportunity for the likes of Lopez de Prado with his outfit True Positive Technologies — a dig at the erroneous conclusions derived … Read more