KLAC

VBI Ratings Not as Impressive As We Would Have Liked in 2022

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Image: How the VBI rating system has ranked equities so far this year. By Brian Nelson, CFA At Valuentum, we use the Valuentum Buying Index (VBI) to source ideas into diversified simulated newsletter portfolios, and the VBI may be most applicable to the simulated Best Ideas Newsletter portfolio, where we generally like to include ideas when they register a high VBI rating and remove them when they register a low VBI rating. We always use the VBI in a portfolio setting and never by itself. But what about the Valuentum Buying Index ratings, themselves? How did they “perform” during 2022 in one of the worst years for stock market investors in history? Well, not as spectacular as we would have … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

How to Think About Corporate Tax Reform

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Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

The Best Years Are Ahead

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By Brian Nelson, CFA — The wind is at our backs. — The Federal Reserve, Treasury, and regulatory bodies of the U.S. may have no choice but to keep U.S. markets moving higher. The likelihood of the S&P 500 reaching 2,000 ever again seems remote, and I would not be surprised to see 5,000 on the S&P 500 before we see 2,500-3,000, if the latter may be in the cards. The S&P 500 is trading at ~4,100 at the time of this writing. — The high end of our fair value range on the S&P 500 remains just shy of 4,000, but I foresee a massive shift in long-term capital out of traditional bonds into equities this decade (and markets … Read more

Dividend Increases/Decreases for the Week Ending February 16

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Below we provide a list of firms that raised their dividends during the week ending February 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week AbbVie (ABBV): now $0.96 per share quarterly dividend, was $0.71. AllianceBernstein (AB): now $0.84 per share quarterly dividend, was $0.51. Applied Industrial Technologies (AIT): now $0.30 per share quarterly dividend, was $0.29. Apollo Global Management (APO): now $0.66 per share quarterly dividend, was $0.39. Arch Coal (ARCH): now $0.40 per share quarterly dividend, was $0.35. Auburn National (AUBN): now $0.24 per share quarterly dividend, was $0.23. … Read more

Dividend Increases/Decreases for the Week of November 3

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Below we provide a list of firms that raised their dividends during the week ending November 3. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          AllianceBernstein (AB): now $0.65 per share quarterly dividend, was $0.61. Amcor (AMCR): now $0.1250 per share quarterly dividend, was $0.1225. American Financial (AFG): now $1.50 per share special dividend, was $0.71. Banco Santander (SAN): now $0.085 per share semi-annual dividend, was $0.063. Black Diamond Group Limited (BDI:CA): now CAD 0.03 per share quarterly dividend, was CAD 0.02. Brixmor Property (BRX): now $0.2725 per share … Read more

2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?

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Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more

Dividend Increases/Decreases for the Week of June 17

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Below we provide a list of firms that raised their dividends during the week ending June 17. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week      Acme United (ACU): now $0.14 per share quarterly dividend, was $0.13. AFC Gamma (AFCG): now $0.56 per share quarterly dividend, was $0.55. Alpha Metallurgical (AMR): now $0.375 per share quarterly dividend. America First Multifamily Investors (ATAX): now $0.37 per share quarterly dividend, was $0.33. BitNile Holdings 13% CUM RED PFD (NILE.PD): now $0.2708 per share monthly dividend. BrightSpire Capital (BRSP): now $0.20 per share quarterly dividend, … Read more

Our Thoughts on the Widespread Launch of 5G Services

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Image Shown: The evolution of wireless networks and telecommunications technology over the years. Image Source: Intel Corporation – November 2019 State of 5G Presentation  By Callum Turcan The rollout of 5G telecommunication networks is upon us and we want to draw our members’ attention to some of the key companies with meaningful exposure to this space. Many are excited about what opportunities 5G technology could enable. Background On July 23, AT&T Inc (T) announced its 5G network in the US was operational nationwide and that effective August 7, both consumers and businesses with certain packages would have 5G access “at no additional cost” which included customers with AT&T Unlimited Starter, Extra, Elite, AT&T Business Unlimited Web-Only and Starter wireless plans. … Read more