JNJ

EVERYTHING DIVIDENDS + 3 TOP IDEAS

by

The Valuentum analyst team explains the difference between the adjusted Dividend Cushion ratio and its unadjusted counterpart. The success of the Dividend Growth Newsletter portfolio is covered, and Valuentum’s top 3 dividend growth ideas are unveiled. ~13 minutes. If you are unable to view the video below, please select the link here or view the transcript below. Kris Rosemann: Hello and welcome to the Valuentum Securities podcast. My name is Kris Rosemann and with me today is Chris Araos and Brian Nelson, the president of equity research and ETF analysis here at Valuentum, and today we’re going to be discussing the Dividend Cushion ratio, the Dividend Growth Newsletter portfolio, and some of our favorite dividend ideas on the market today. So … Read more

Pharma Momentum Builds for Johnson & Johnson

by

Image Source: J&J By Kris Rosemann Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio holding Johnson & Johnson’s (JNJ) third quarter report October 18 was an impressive display of the success of its new product launches and the strength of its ‘Pharmaceutical’ business, which it expects is only just heating up. Johnson & Johnson is a long-time holding in the Dividend Growth Newsletter portfolio and was recently added to the Best Ideas Newsletter portfolio in January 2016 as a diversified pharma replacement for the more speculative Gilead (GILD), “Alerts: High-grading! GILD–>JNJ; EBAY–>FB (January 2016),” “The J&J-Gilead Trade-off Update (July 2016).” We see no reason to adjust our positions in Johnson & Johnson in either newsletter portfolio following the solid … Read more

Video: An Overview of Our 16-page Stock Research Reports

by

Can’t view the video walk-through of our 16-page reports on your mobile device? Download the Puffin Web Browser App from Apple free. Click here. Unable to display content. Adobe Flash is required.

Where I Went Wrong on Gilead

by

Image Source: torbakhopper By Brian Nelson, CFA Our trade(s) in the Best Ideas Newsletter portfolio with respect to hepatitis-C juggernaut Gilead (GILD) is (are) not something I’m proud of. I know the Best Ideas Newsletter is performing fantastically, and we continue to outdistance the broad market benchmark, but I’m not satisfied unless I get everything right, even though this is an unattainable goal. Here’s what happened. I was enamored by Gilead. The pharma giant had found a cure for hep-C. It was a free-cash-flow generating behemoth, and its balance sheet was solid. What I did not anticipate was just how easily its patent on Harvoni/Sovaldi could be circumvented and how the economics would be truncated, both with respect to volume … Read more

Understanding the Chartered Financial Analyst (CFA) Designation

by

“Among the countless finance degrees around the world, the Chartered Financial Analyst qualification has become the gold standard.” – Financial Times, 13 August 2010 “[The] qualification is roughly equivalent to a specialized postgraduate finance degree, including a mixture of economics, ethics, law, and accountancy… Whereas there are tens of thousands of finance degrees available around the world, ranging from the excellent to the worthless, there is only one CFA, managed and examined by an American association of financial professionals, the CFA Institute.” – the Economist From the CFA Institute: “The Chartered Financial Analyst (CFA) charter is an investment credential that, for more than 60 years, has been the global standard for embodying the integrity, dedication, and advanced skills needed to … Read more

The Quiet Analyst Speaks

by

Image Description and Source: Mailslot for Cantor Fitzgerald, on the top floors of the WTC. The mailslot was located in a post office near the WTC site. The mailslots are with the Smithsonian Institution. Travis Wise. It’s 9pm Sunday, September 11, 2016. The day is a somber one. The 15th year passing of the tragic events of 9/11 were on everyone’s minds, and I can’t help but think specifically of Cantor Fitzgerald. The financial services company’s headquarters were on the 101st-105th floors of One World Trade Center, just a few floors above the impact zone of one of the hijacked airplanes. The firm lost 658 employees, over two thirds of its workforce, more than “any of the other World Trade … Read more

The J&J-Gilead Trade-off Update

by

By Brian Nelson, CFA I think we need to admit that adding Gilead (GILD) to the Best Ideas Newsletter portfolio several months ago when we did was a bit tardy, but we think we have made up for that miscue when we swapped out its shares completely with Johnson & Johnson (JNJ), which has experienced steadily-advancing returns since that trade. Certainly we took a loss in the Best Ideas Newsletter portfolio on Gilead, and we’re not happy about it, but the alpha of this J&J-Gilead trade is now at 15 percentage points. As investors, we understand that we’re not going to get everything right all of the time, and we continue to showcase to readers that it is okay to … Read more

Keep Calm and Carry On?

by

Image Source: War History Online, June 22 Brexit may or may not be a big problem. Time will tell. But what matters and eventually becomes its own catalyst, however, is valuation. The forward price-to-earnings multiple on S&P 500 companies (SPY) is currently ~16.5 times, above its 5-year (14.6) and 10-year averages (14.3). This is the real story. Assuming a reversion to the 10-year average multiple, for example, the S&P 500 can be considered “fairly valued” at $1,811, a drop of another 10% from ~2,000 levels. You don’t need us to tell you that the markets have practically gone straight up the past seven years from the March 2009 panic bottom through today, with the S&P 500 effectively tripling since that … Read more

Gilead: What’s Your Long Term Thesis?

by

Shown: Pricing pressure continues to hurt Gilead’s gross margin; source: Gilead’s first-quarter 2016 presentation. We’re still sleeping better at night knowing that we avoided the first-quarter blowup at Gilead (GILD), “Gilead Disappoints, Harvoni Sales Drop 16% (April 2016).” Sales of Harvoni in the US dropped like a rock from the year-ago period, and as Gilead throws away its cash at buybacks to bolster accounting earnings per share, no longer does it hold the balance sheet it once did. Sure, something can be said about having ~$21 billion in cash, but it kind of loses its luster matched up with a similar amount of liabilities, as is the case with Gilead. Remember – it’s net cash that matters. To a large … Read more

Gilead Disappoints, Harvoni Sales Drop 16%

by

Image Source: Gilead By Brian Nelson, CFA “They” say nobody saw this coming, but then again not everybody follows Valuentum’s research and analysis. That’s a good thing. We were starting to doubt our de-risking maneuver in the Best Ideas Newsletter portfolio that we made in January, “Alerts: High-grading! GILD–>JNJ; EBAY–>FB (January 2016),” in light of Gilead’s shares recovering nicely along with the market advance. However, the hep-C giant’s first-quarter report, released April 28, looks like it will be the catalyst to bring shares back down to earth, fair or not. Given some of the comments/questions we’ve received in recent months, we think it is worth noting that since the January 29 transaction alert, shares of Johnson & Johnson (JNJ) have … Read more