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Valuentum Stock Screeners

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This article was sent to members via email December 29. That email can be accessed at the link that follows this article. By Brian Nelson, CFA Hi everyone, I wanted to provide an update with respect to Valuentum’s stock screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, or data that is important with respect to the investment decision-making process. We publish screens in each of the monthly newsletters, but we also provide a basic weekly screener for download on the left column of the website, “Download Weekly Stock Screener (xls) — login required.”   We also have other products. The more robust DataScreener, for example, is part of the quarterly Financial … Read more

Market Mayhem — Alerts for Members

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During these extremely volatile times, it’s important to stay focused. On December 15, we informed all of our members to “Pay Attention.” Shortly thereafter, we notified members of the potential for a stock market technical breakdown. This morning, we offered a pre-market briefing about the importance of thinking about portfolio protection. For Best Ideas Newsletter and Dividend Growth Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=e2406cd6-c113-4344-8731-493f33fc44a4&id=preview For High Yield Dividend Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=b3ba530f-38b3-489a-ac96-2961dca89c6b&id=preview For Exclusive members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=ba6d90c0-4433-48b2-9b8a-aac4ddf9006e&id=preview We’re here for any questions. Please just let us know how we can help! Kind regards, Brian Nelson, CFA  brian@valuentum.com

In the News: Sears Adds to Retail Bankruptcies, Leading Defense Company Formed, and the Political Nature of Crude Oil Prices

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Sears officially files for bankruptcy, a top-ten global defense company is formed, and political tensions with Saudi Arabia have the potential to send crude oil prices higher. By Kris Rosemann At one time it was the largest retailer in the US, but Sears Holdings (SHLD) has fallen a long way to its filing for Chapter 11 bankruptcy protection early October 15. Real estate investment trust Seritage Growth Properties (SRG) is facing selling pressure as it generates roughly 30% of signed lease income from Sears properties, and a report released earlier this month from Reis noted that US mall vacancies hit 9.1% in the third quarter of 2018, a seven year high. Sears’ Chapter 11 filing marks the twelfth retail bankruptcy … Read more

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution

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The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones. “The most important item over time in valuation is obviously interest rates…If interest rates are destined to be at low levels…It makes any stream of earnings from investments worth more money. The bogey is always what government bonds yield….Any investment is worth all the cash you’re going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982…When we had 15 percent short-term rates in 1982, it was silly to pay … Read more

Boeing’s Massive Backlog Still Growing, Near-Term Margin Concerns Crop Up

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Image Source: Robert Sullivan Commercial aerospace giant Boeing continues to ride a wave of strong demand as its massive backlog continues to grow, but a write down related to the troubled KC-46 tanker appears to have investors thinking twice about its near-term margin performance. By Kris Rosemann Shares of former simulated Dividend Growth Newsletter portfolio idea Boeing (BA) faced a bit of selling pressure in the July 25 trading session following its second quarter earnings release as a write down related to additional costs in the troubled KC-46 tanker program helped caused a margin guidance reduction in its ‘Defense, Space & Security’ segment. Delivery of the first aircraft in the program is expected in October 2018, more than two years … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

Lockheed’s Shares Still Not Cheap

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Image shown: “Lockheed Martin F-35 Joint Strike Fighter Lightning II test aircraft AA-1 undergoes flight testing over Fort Worth, Texas (source).” We liked Lockheed Martin’s first-quarter 2018 report, and we liked even more that the company raised its full-year outlook for revenue, operating income and earnings per share. Operating cash flow performance was weighed down by pension contributions and backlog didn’t advance in the period, but the backdrop for defense spending remains healthy given ongoing geopolitical tensions. Shares of Lockheed aren’t cheap, however. By Brian Nelson, CFA We were generally pleased with Lockheed Martin’s (LMT) first-quarter 2018 results that showed revenue advancing ~3.8%, and the company leveraging top-line growth into ~20% expansion in business segment operating profit, to $1.31 billion. … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.

Trump’s Tariffs Ignite Concerns about Protectionism, Rising Input Costs

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Image Source: Michael Vadon President Trump is making true on his promises to protect the domestic steel and aluminum industries. Input costs may move higher for many global industrials, and the long-term implications of protectionist policy will be tested. We’re not expecting retaliation, but we can’t rule it out either. Rising rates remain our primary concern. Kris Rosemann and Brian Nelson, CFA If rising interest rates aren’t enough to give the market heartburn, President Trump announced March 1 that he will impose tariffs on the importation of steel and aluminum to the tune of 25% and 10%, respectively, citing national security concerns. Steel and aluminum stocks rallied hard on the news, but it left many of its industrial brethren under … Read more