LBRDA

There Will Be Volatility

by

By Brian Nelson, CFA Last year, 2022, was a big test for equity investors, and the downside volatility that we witnessed during the year wasn’t comfortable, to say the least. Following the COVID-19 crash and rebound during 2020, and then the market surge in 2021, it wouldn’t be a stretch to say many investors’ heads are probably still spinning from all the volatility witnessed to start this decade. That said, part of what we’ve been warning about the past few years with respect to the equity market, especially in Value Trap, is that the proliferation of price-agnostic trading (e.g. quant, machine/algorithmic trading, etc.) will only lead to more and more market volatility, so while we were somewhat surprised by last … Read more

Verizon’s Big Share-Price Drop Opens Opportunity for 6.8% Dividend Yield

by

Image: Verizon’s shares have been punished, but this has opened an opportunity for a 6.8% dividend yield. Image Source: TradingView By Brian Nelson, CFA When Verizon (VZ) reported third-quarter results in late October, the company’s revenue advanced 4% on a year-over-year basis, exceeding the consensus estimate, while non-GAAP earnings per share came in at $1.32 per share, beating the consensus estimate by a few pennies, but down slightly on a year-over-year basis. Adjusted EBITDA fell 0.4% from the same period last year. Verizon is one of the leading communication service providers in the world, and its operations span data, video and voice services across its networks and platforms. The company’s two reportable segments, Verizon Consumer Group and Verizon Business Group, … Read more

Large Cap Growth Has More Room To Run

by

“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more

Dividend Increases/Decreases for the Week December 25

by

Below we provide a list of firms that raised their dividends during the week ending December 25. 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 AMCON Distributing Company (DIT): now $5.00 per share special dividend, was $0.18. Bank First (BFC): now $0.21 per share quarterly dividend, was $0.20. Cosan (CZZ): now $1.02340096 per share dividend, was $0.11189896. Extended Stay America (STAY): now $0.35 per share special dividend, was $0.01. Flexsteel (FLXS): now $0.10 per share quarterly dividend, was $0.05. Franklin Limited Duration Income Trust (FTF): now $0.0776 per share monthly dividend, … Read more

June Dividend Growth Newsletter & Intrinsic Value Investing

by

“But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.“  —                — Warren Buffett, Berkshire Hathaway annual report, 1992 — By Brian Nelson, CFA — To add our new options commentary to your membership, please register here ($500/year). — Hi everyone!  — We remain unequivocally bullish on the markets and intrinsic value investing. We believe value today rests within companies that have strong net cash positions (all cash less short- and long-term debt) and solid expected future free cash flows … Read more

Stock Market Outlook for 2021

by

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

Qurate Retail Faces Difficult Turnaround Process

by

Image Source: Qurate Retail Inc – First Quarter of 2022 IR Earnings Presentation Executive Summary: Qurate Retail Inc is home to several well-known retail brands including QVC and HSN that operate television networks and online marketplaces that sell curated products. The company is contending with several exogenous shocks such as inflationary pressures and supply chain hurdles, while customer engagement levels are on the decline after growing during the initial phases of the COVID-19 pandemic. Qurate Retail has a massive net debt load and sizable annual financing obligations, and its margins have deteriorated substantially of late. Due to its complex share structure and management organization, weak financial position, and lackluster outlook, we are not interested in Qurate Retail’s common or preferred … Read more