LCNB

How Some Members Use Valuentum’s Investment Services

by

By Brian Nelson, CFA Thank you for your membership to Valuentum. We serve a wide variety of investors, including dividend growth investors, value investors, and pure Valuentum investors, among others. Many different types of investors and professionals use our research and financial analysis in a whole host of applications from individual stock-selection to the evaluation of closed-end funds to an overlay in a money-management setting and beyond. We wanted to make sure that you know that, if you’re a dividend growth or income investor, that there are others that use our website to utilize the Valuentum process, fair value estimates and other metrics. Similarly, if you’re a practitioner of the Valuentum system, I wanted to make sure that you are … Read more

Dividend Increases/Decreases for the Week of November 24

by

Below we provide a list of firms that raised their dividends during the week ending November 24. 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                          BMO Equal Weight REITs Index ETF (BMQWF): now CAD 0.09 per share monthly dividend. CLPS (CLPS): now $0.10 per share special dividend, was $0.05. CMUV Bancorp (CMUV): now $0.12 per share quarterly dividend, was $0.10. Fastenal (FAST): now $0.38 per share special dividend, was $0.35.      Flex LNG (FLNG): now $0.75 per share quarterly dividend, was $0.125. Hormel Foods (HRL): now $0.2825 per share quarterly … Read more

CFA Institute Blog: “Hide-‘Til-Maturity” Accounting

by

The Silicon Valley Bank collapse recalls the tussle over the accounting for financial instruments after the global financial crisis [GFC] in 2009, particularly the debate about whether some financial instruments should be carried at amortized cost (held-to-maturity, HTM) rather than at fair value (available-for-sale, AFS), or what is referred to as the “mixed measurement model.”  — Sandy Peters, CPA, CFA To read the article on the CFA Institute Blog >> —– Related: 4 Very Good Reasons Why We Don’t Like Dividends of Banking Stocks Banks & Money Centers: AXP, BAC, BBT, BK, C, DFS, FITB, GS, HBC, JPM, KEY, MS, NTRS, PNC, RF, STI, TFC, USB, WFC Valuentum does not believe the long-term dividend health of any financial institution can be accurately … Read more

Dividend Increases/Decreases for the Week of November 25

by

Below we provide a list of firms that raised their dividends during the week ending November 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                Banco BBVA Argentina (BBAR): now $0.0179 per share quarterly dividend, was $0.0172. COSCO SHIPPING Holdings Co., Ltd. (CICOY): now $1.391 per share semi-annual dividend. Dream Residential Real Estate Investment Trust (DRR.U:CA): now $0.035 per share monthly dividend. E Split Corp. (ENS:CA): now CAD 0.13 per share monthly dividend. Eltek (ELTK): now $0.17 per share quarterly dividend. Employers Holdings (EIG): now $1.25 per share special dividend, … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

by

Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

by

With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Dividend Increases/Decreases for the Week Ending November 23

by

Below we provide a list of firms that raised their dividends during the week ending November 23. 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 Becton, Dickinson (BDX): now $0.77 per share quarterly dividend, was $0.75. CB Financial Services (CBFV): now $0.23 per share quarterly dividend, was $0.22. Cross Timbers Royalty Trust (CRT): now $0.144509 per share monthly dividend, was $0.124040. Deswell Industries (DSWL): now $0.06 per share semi-annual dividend, was $0.04. Exchange Bank (EXSR): now $1.00 per share quarterly dividend, was $0.95. Farmers & Merchants Bank of Long Beach (FMBL): … Read more

The Mortgage Refinancing Boom Could Be Ending

by

Early Wednesday morning, the Mortgage Banker’s Association (MBA) announced that refinancing activity declined 20% from one week earlier. Adjusted for the Labor Day weekend, total mortgage applications dropped 13.5% from the previous week. Consistent with the dramatic upward movement in interest rates, refinancing activity is down 71% since it peaked during the week of May 3, 2013. Why Do We Monitoring Refinancing Activity? When homeowners refinance, a couple outcomes can occur that pump more dollars into the economy. First, with a refinanced mortgage, owners may choose to take equity out of the home, allowing for large purchases like vehicles or even home remodeling. CoreLogic recently reported that 2.5 million more residential properties have returned to positive equity in the second quarter … Read more

Why We Don’t Like Dividends of Banking Firms: 4 Very Good Reasons

by

Untermyer: Is not commercial credit based primarily upon money or property? Morgan: No, sir. The first thing is character. Untermyer: Before money or property? Morgan: Before money or anything else. Money cannot buy it … a man I do not trust could not get money from me on all the bonds in Christendom. –Mr. JP Morgan’s testimony before the Pujo Committee (questioning from Samuel Untermyer), 1912-1913 Reason #1: A Bank Run Is Always Possible Though the history of banking dates back to as early as 2000 BC in Babylonia, the makings of the present-day banking system in the US really didn’t take hold until the beginning of the 20th century. Some financial historians may argue for a later date, but we … Read more

Dividend Increases/Decreases for the Week November 20

by

Below we provide a list of firms that raised their dividends during the week ending November 20. 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 AFLAC (AFL): now $0.33 per share quarterly dividend, was $0.28. Agilent Technologies (A): now $0.194 per share quarterly dividend, was $0.180. American Equity Investment Life (AEL): now $0.32 per share annual dividend, was $0.30. Brown-Forman (BF.A): now $0.1795 per share quarterly dividend, was $0.1743. Capital City Bank (CCBG): now $0.15 per share quarterly dividend, was $0.14. ChoiceOne Financial Services (COFS): now $0.22 per share quarterly dividend, … Read more