KLAC

Apple Reportedly Launching 5G iPhone Soon

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Image Shown: Shares of Best Ideas Newsletter and Dividend Growth Newsletter portfolio holding Apple Inc have continued to surge higher this year. The tech giant is supported by strong demand for its hardware offerings, the launch of new services, and growing demand for its existing services. We are intrigued by the upcoming launch of its first 5G-capable iPhone, which is reportedly due to be released this Fall. By Callum Turcan Very recently, Bloomberg reported that Apple Inc (AAPL) is asking its suppliers to get ready to deliver at least 75 million 5G iPhones later this year, which may grow as high as 80 million. What makes these targets particularly noteworthy is that it appears Apple is expecting demand for its … 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!

Intel Plans to Repurchase a Lot of Its Stock

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Image Shown: Intel Corporation is having trouble producing the next generation of chips (7-nm and smaller) as its current manufacturing process is having yield issues, which we covered previously. Image Source: Intel Corporation – Architecture Day 2020 Presentation By Callum Turcan On July 23, Intel Corporation (INTC) reported second quarter fiscal 2020 earnings (period ended June 27, 2020) that we covered in detail here. For members that have not yet read that note, we strongly encourage them to do so. Please note that delays in Intel’s 7-nm chip production schedule weighed negatively on its medium-term outlook, which sent shares of INTC meaningfully lower after its latest earnings report. Management recently responded by announcing a plan to aggressively buy back Intel’s … Read more

Intel’s 7-nm Chips Behind Schedule, Free Cash Flows Remain Strong

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Image Shown: Intel Corporation made waves on July 23 when it announced its 7-nm chips were well behind schedule. Image Source: Intel Corporation – Second Quarter Fiscal 2020 IR Earnings Presentation By Callum Turcan On July 23, Intel Corporation (INTC) reported second quarter fiscal 2020 earnings (period ended June 27, 2020) that beat both consensus top- and bottom-line estimates. However, shares of INTC dropped during after hours trading that day due to Intel delaying the rollout of its 7-nanometer chips. The company offered full-year guidance for fiscal 2020 that indicated its growth trajectory was continuing in the face of the ongoing coronavirus (‘COVID-19’) pandemic, though investors were largely fixated on the delay of its 7-nm chip offerings. Guidance Update In … Read more

IBM’s Cloud Transition Continues

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Image Source: International Business Machines Corporation – 2019 Annual Report By Callum Turcan On July 20, International Business Machines Corporation (IBM) reported second quarter 2020 earnings that beat both consensus top- and bottom-line estimates. Most of the market’s excitement centered on IBM’s ‘Cloud & Cognitive Software’ segment posting year-over-year revenue growth of ~3% in the second quarter while its company-wide GAAP revenue declined by ~5% year-over-year, though initial gains in IBM’s share price faded away during regular trading hours on July 21. In the earnings press release, IBM noted its “total cloud revenue” grew by 30% year-over-year last quarter. Shares of IBM are trading near their fair value estimate of $129 as of this writing, indicating that shares of IBM … Read more

Update on Dell Technologies and VMware

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Image Source: VMware Inc – First Quarter Fiscal 2021 IR Earnings Presentation By Callum Turcan Dell Technologies Inc (DELL) and VMware Inc (VMW) are back in the news as the WSJ recently reported the former is considering spinning off its enormous equity stake in the latter. Back in September 2016, Dell completed its ~$67 billion cash-and-stock acquisition of EMC which gave Dell a controlling equity stake in VMware (and a mountain of net debt in the process). As of January 31, 2020, Dell owned approximately 80.9% of VMware’s outstanding equity. Dell can spin off its equity stake in VMware tax-free after a five-year waiting period, though Dell would need to wait until September 2021 before that could occur (given when … Read more

Broadcom’s Financials Are Stabilizing

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Image Source: Broadcom Inc – June 2020 IR Presentation By Callum Turcan On June 4, Broadcom Inc (AVGO) posted second quarter earnings for fiscal 2020 (period ended May 3, 2020). Shares of AVGO are trading in the upper bound of our fair value estimate range and appear reasonably priced as of this writing considering the relatively favorable forward-guidance management offered for the fiscal third quarter. Though the ongoing coronavirus (‘COVID-19’) pandemic is negatively impacting Broadcom’s operations with an eye towards “challenges” at the firm’s supply chain, the company’s growing ‘Infrastructure software’ segment appears to be helping stabilize its financial performance. We give Broadcom a Dividend Cushion ratio of 1.0, earning the firm a “GOOD” Dividend Safety rating (these metrics factor … 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

*ALERT* Scribbles and More Newsletter Portfolio Changes

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*ALERT* Scribbles and More Newsletter Portfolio Changes Image: Why are stock prices increasing while the near-term economy and near-term earnings outlook isn’t as bright as before…How unlimited quantitative easing, runaway government spending, increased inflation expectations impact equity values…Why this year’s earnings expectations or next year’s earnings expectations don’t matter much…Why Valuentum thinks equity values are rising today, even as the near-term outlook remains unclear. Scribbles on page 76 of Value Trap. — “I know it sounds crazy to say so during a global pandemic and during a recession, but the right multiple and the right earnings to use to value this market is an 18-20x multiple on $196 earnings, putting a fair value range on the S&P 500 today of 3,530-3,920. The … Read more