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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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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

Mondelez Capturing Share, Generating Strong Free Cash Flow

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Image Source: Mondelez International Inc – November 2020 IR Presentation By Callum Turcan On January 28, snacks giant (generates most of its annual revenues from biscuits, chocolates, gum and candy) Mondelez International Inc (MDLZ) reported fourth quarter earnings for 2020 that beat both consensus top- and bottom-line estimates. Management noted in the earnings press release that the firm “enter[ed] 2021 in a strong position financially and in the marketplace which gives us confidence that we can deliver on our long-term growth targets in 2021 and beyond.” Mondelez reported 3.7% net organic revenue growth in 2020, supported by favorable volume and pricing movements, and negatively impacted by product mix. The firm’s GAAP revenues were up just under 3% year-over-year in 2020, … Read more

Starbucks Expects to Recover in Fiscal 2021

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By Callum Turcan On January 26, Starbucks Corporation (SBUX) reported first quarter earnings for fiscal 2021 (period ended December 27, 2020) that saw the firm miss consensus top-line estimates but beat consensus bottom-line estimates. The ongoing coronavirus (‘COVID-19’) pandemic has weighed negatively on Starbucks’ performance of late, as its GAAP revenues fell by 5% and its GAAP operating income tanked by 25% on a year-over-year basis last fiscal quarter. Leaning on its digital presence and drive-through operations have helped to a degree, but the reduction in the number of workers commuting worldwide (especially in the US) is clearly taking a toll on its business, as is the decline in vacation and business travel. Shares of SBUX yield ~1.8% as of … Read more

Starbucks’ Long-Term Outlook Is Improving

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Image Shown: Starbucks Corporation sees the total addressable market for coffee products growing by a decent clip over the coming years, which is forecasted to reach ~$450 billion in 2023. Image Source: Starbucks Corporation – 2020 Biennial Investor Day Presentation By Callum Turcan On December 9, Starbucks Corporation (SBUX) hosted its biennial Investor Day meeting, held virtually this year due to the ongoing coronavirus (‘COVID-19’) pandemic and updated its financial guidance for the next several fiscal years. For reference, Starbucks’ GAAP revenues and GAAP operating income fell 11% and 62% year-over-year, respectively, in fiscal 2020 (period ended September 27, 2020) as the company contended with headwinds created by the COVID-19 pandemic. Looking ahead, Starbucks expects to realize a “significant rebound” … Read more

Coca-Cola’s 3.3% Dividend Yield Not Bad

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Image: Coca-Cola By Brian Nelson, CFA There are few companies that have stood the test of time like Coca-Cola (KO). With consumer preferences seemingly changing at the drop of a hat, it is hard to believe that the first glass of Coca-Cola was served in Atlanta more than 100 years ago, in 1886. That’s just 10 years after the first commercially successful combustion engine was invented and more than 20 years before the first Model T Ford rolled off the production line. The next 100 years for Coca-Cola won’t be as easy as the first, in our view, given health trends against sugar consumption and efforts to combat the obesity epidemic, but ongoing innovation may continue to keep this beverage … Read more

PepsiCo Earnings Update

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Image Shown: PepsiCo Inc’s expansive snacks and beverage portfolio is home to 23 brands that generated $1+ billion in annual retail sales in 2019. We are big fans of PepsiCo’s business model but caution that the firm’s net debt load needs to be closely monitored going forward, especially given management’s generous approach to dividends and share repurchases. Image Source: PepsiCo Inc – CAGNY 2020 IR Presentation By Callum Turcan Dividend aristocrat PepsiCo Inc (PEP) reported third-quarter fiscal 2020 earnings (period ended September 5, 2020) that beat both top- and bottom-line consensus estimates. PepsiCo’s organic revenue growth, a non-GAAP metric, stood out. During the fiscal third quarter and the first three quarters of fiscal 2020, PepsiCo’s organic revenue growth clocked in … Read more

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!

Earnings Update: LMT, ISRG, KO, PM

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By Brian Nelson, CFA We released a few preliminary thoughts on second quarter earnings in our note here, but we wanted to elaborate on a few new reports, too. Lockheed Martin (LMT) is included in the Dividend Growth Newsletter portfolio (login required), while Intuitive Surgical (ISRG) was highlighted as a COVID-19 play during the March swoon. Coca-Cola (KO) remains an excellent bellwether on the global economy, while Philip Morris (PM) remains a holding in the High Yield Dividend Newsletter portfolio (subscribe). Let’s cover the second quarter reports from these companies in this note. Lockheed Martin Achieves Record Backlog Things are looking good for Dividend Growth Newsletter portfolio holding Lockheed Martin. The company’s second-quarter results, released July 21, showed the defense … Read more

Reiterating Our Bullish Long-Term View on Stocks

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Reiterating Our Bullish Long-Term View on Stocks Image: The NASDAQ 100 Index remains resilient, bouncing off support, after breaking out to new highs recently. Some of our best ideas are included in the NASDAQ 100, and our favorite concentrations include exposure to big cap tech and large cap growth. We continue to be bullish on equities for the long run. — By Brian Nelson, CFA — Hi everyone, — Hope you are doing great! First, I wanted to let you know that we’re still working to get the second release of the survey out to you. Your participation in the survey will determine whether we launch a new business, so please do fill it out and keep a watchful eye out for … Read more

ICYMI: Survey Coming Later Today, More Market Volatility Expected

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ICYMI: Survey Coming Later Today, More Market Volatility Expected Image: The market’s levels of volatility so far in 2020 have been among the greatest in history. Expectations for increased volatility in the marketplace as a result of the proliferation of price-agnostic trading (indexing and quantitative trading) is a key theme of Valuentum’s text, Value Trap: Theory of Universal Valuation. We continue to emphasize the importance of due diligence, enterprise valuation, behavioral thinking, the information contained in prices, and stock selection across equity portfolios. Page 256. — Hi everyone, — Hope you all are doing great!  — Many of you have already filled out the survey, and I can’t thank you enough for that. For those that may have missed the email housing … Read more