IRM

Digital Realty 2019 Guidance Indicative of Datacenter Pricing Trends

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Image shown: Digital Realty’s top 20 customers by annualized base rent. Source: Digital Realty investor presentation. Digital Realty expects weakness in rental rates on renewal leases on a cash basis in 2019, which is indicative of negotiating power held by large cloud operators, but the REIT expects top-line growth to continue thanks in part to ongoing growth in leasing volume. By Kris Rosemann Shares of simulated Dividend Growth Newsletter portfolio idea Digital Realty Trust (DLR) faced selling pressure following the release of its 2019 guidance January 9. The update revealed expectations for a high-single-digit decline in rental rates on renewal leases on a cash basis and core funds from operations (FFO) guidance of $6.60-$6.70, the latter of which came in … Read more

Markets Still Bouncing Nicely

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Image shown: This holiday season was mighty hectic, and not many were anticipating the volatility we experienced. Here’s where the simulated Best Ideas Newsletter and simulated Dividend Growth Newsletter portfolios went to “fully invested,” reducing a 30% and 20% cash “weighting” at the high end of their respective ranges for each portfolio, respectively. Email. No Changes to Simulated Newsletter portfolios Brian Nelson, CFA After what perhaps has been the most volatile December in stock market history, the markets are off to the races in January. We continue to watch the broader equity markets closely, but directionally the call to go to “zero” in cash after the close December 26 has worked out, for anyone that received the notification after that date. … Read more

Value Trap, More Volatility; We’re Waiting and Watching

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Image shown: The decision to remove GE from the simulated newsletter portfolios when we did may have been our best call yet.  In this note, let’s talk about the importance of reading Value Trap, learn why we’ve gone “fully invested,” talk a little bit about put options, learn some of the intricacies of the Valuentum process, find out where to find VBI rankings to download and sort, and talk about some of our recently-highlighted ideas in the simulated newsletter portfolios. No Changes to Simulated Newsletter portfolios Brian Nelson, CFA Trust you are having a wonderful Monday morning! I hope that many of you made the conference call last Thursday at 11amET, but if you didn’t, we’ll have another one coming soon. … Read more

The Intricacies of the Valuentum Process

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Let’s take a quick overview of the Valuentum processes for capital appreciation and dividend growth with a discussion of how we use the Valuentum Buying Index and the Dividend Cushion ratio. By Brian Nelson, CFA There is a lot behind the Valuentum processes for capital appreciation and dividend growth, respectively, and both the criteria for inclusion to either the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio are different. Our best ideas at any time, however, are always included in the simulated newsletter portfolios. We use our research as a means to identify new ideas for consideration in the simulated newsletter portfolios, as well as to consider removing ideas from the simulated newsletter portfolios. As it relates to … Read more

Catching the Bottom?

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Image shown: The depths of how far the S&P 500 (SPY) has fallen more recently, and the timing of the decision to move to being “fully invested” in simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio.   No Changes to Simulated Newsletter portfolios. This article was sent to members via email January 9. That email can be found at the link that follows this article. By Brian Nelson, CFA On the evening of December 26, we emailed members that we were moving to “fully invested” in both the simulated Best Ideas Newsletter and simulated Dividend Growth Newsletter portfolio. First of all, please let me apologize. I wanted to stay in front of members during one of the most volatile times … Read more

Markets Up Big; Upside Volatility

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Image shown: The S&P 500 ETF (SPY) since August 2017. The index has broken through support and is now bouncing back to resistance. By Brian Nelson, CFA Good morning everyone, Are you watching these markets? This is incredible. The Dow finished down 660 points yesterday (briefly dropping 700 points), and today, the Dow is currently trading up 600 points at the time of this writing. Granted, there was Apple’s (AAPL) poor first-quarter 2019 guidance yesterday and the strong jobs report today, but this volatility is not “normal,” no matter what others are saying. A couple announcements up front. For those that already ordered our book Value Trap, I will send you the pdf download to your email address just to make sure … Read more

Valuentum Stock Screeners

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This article was sent to members via email December 29. That email can be accessed at the link that follows this article. By Brian Nelson, CFA Hi everyone, I wanted to provide an update with respect to Valuentum’s stock screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, or data that is important with respect to the investment decision-making process. We publish screens in each of the monthly newsletters, but we also provide a basic weekly screener for download on the left column of the website, “Download Weekly Stock Screener (xls) — login required.”   We also have other products. The more robust DataScreener, for example, is part of the quarterly Financial … Read more

Market Mayhem — Alerts for Members

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During these extremely volatile times, it’s important to stay focused. On December 15, we informed all of our members to “Pay Attention.” Shortly thereafter, we notified members of the potential for a stock market technical breakdown. This morning, we offered a pre-market briefing about the importance of thinking about portfolio protection. For Best Ideas Newsletter and Dividend Growth Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=e2406cd6-c113-4344-8731-493f33fc44a4&id=preview For High Yield Dividend Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=b3ba530f-38b3-489a-ac96-2961dca89c6b&id=preview For Exclusive members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=ba6d90c0-4433-48b2-9b8a-aac4ddf9006e&id=preview We’re here for any questions. Please just let us know how we can help! Kind regards, Brian Nelson, CFA  brian@valuentum.com

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution

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The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones. “The most important item over time in valuation is obviously interest rates…If interest rates are destined to be at low levels…It makes any stream of earnings from investments worth more money. The bogey is always what government bonds yield….Any investment is worth all the cash you’re going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982…When we had 15 percent short-term rates in 1982, it was silly to pay … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).