LMT

Podcast: Defense Spending and the Explosion of Cyber Crime

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The Valuentum analyst team discusses trends in US and global defense spending and the explosion of Internet crime that is fueling investment in cyber security both in the public and private sectors. ~7 mins. This podcast was originally published November 3, 2016. If you cannot view the video below, please view the transcript that follows or click the link here. Software – Security: CHKP, FEYE, FTNT, IMPV, PANW, PFPT, SYMC, VRSN Aerospace & Defense – Prime: BA, FLIR, GD, LLL, LMT, NOC, RTN Brian Nelson, CFA: This is Brian Nelson for Valuentum Securities, and today I have joining me on our podcast Mr. Kris Rosemann and Mr. Chris Araos. Today, we are going to talk about the landscape for defense spending … Read more

Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Boeing’s Lift Off, Lockheed’s Caution, and United Tech’s Outlook

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Image Source: Rob Buhlman Just how healthy is the commercial aerospace market? Very — if the size of Boeing’s backlog is any indication. Let’s have a look. By Brian Nelson, CFA In August 2016, we wrote an extensive update on the commercial aerospace market, “Boeing Declares Victory But Farnborough Disappoints,” and we encourage those that are digging into this follow-up note to read that piece first before proceeding. In this note, dated Wednesday, January 25, we’d like to build on that piece and update investors on a few insights we’ve gathered within the aerospace market. First, what was once a key company to assess commercial aerospace demand is no longer. As of November 1, Alcoa (AA) has been severed into … Read more

5 Shocking Stock Market Predictions for 2017

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Image Source: Claudia Dea  Valuentum: 2017 Is the Year of Evangeline Adams By Brian Nelson, CFA “Entrepreneurs are never satisfied. They want to do things better. They strive for perfection and use all the ingenuity to their command to achieve it.” – J.W. Marriott My Inbox Was Overflowing with Kindness Your positive replies to my last email, “Words Cannot Express How I Feel” were simply incredible. My inbox was flooded with so many emails, so many kind words. There were so many that I’m still working through them. If you haven’t received a personal reply, plan on getting one. You’re very important to me. It’s quite possible that I may very well be the luckiest man to have such wonderful … Read more

Is It Time or Timing in the Market?

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Image Source: Dimitris Kalogeropoylos By Brian Nelson, CFA Since joining the workforce after undergraduate studies, those that will be turning 30 years’ old during 2017 will have never witnessed a meaningful bear market, large down year, or even a substantial “correction” in the stock market during their working lives. That’s right — many workers that were born in the mid-1980s when Ronald Reagan was President are probably starting to believe that they’ve found the secret to investing success and that broader US markets only go up (or down just a little at times, but they always recover and go higher). No matter if this assessment of their opinion of the markets is true or not may not matter. At the … Read more

Dividend Increases/Decreases for the Week Ending September 23

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 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 8point3 Energy Partners (CAFD): now $0.2406 per share quarterly dividend, was $0.2325. ALPS Cohen & Steers Global Realty Majors ETF (GRI): now $0.382421 per share quarterly dividend, was $0.312204. Ameris Bancorp (ABCB): now $0.10 per share quarterly dividend, was $0.05. ATN International (ATNI): now $0.34 per share quarterly dividend, was $0.32. Bank of South Carolina (BKSC): now $0.14 per share quarterly dividend, was $0.13. BIOQUAL (BIOQ): … Read more

Lockheed Martin Overpriced, Leidos Dead” Money…Maybe”

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Image Source: Maryland GovPics “Lockheed Martin shareholders have a choice to make, but it may not be the one they are thinking about. We think the Leidos deal is largely a wash, and while we don’t dislike the company, we don’t think Leidos is a no-brainer particularly in light of its net debt load. The real question, in our opinion, is whether either of the two, Lockheed Martin or Leidos, are worthy of your investment dollars at present levels. One is overpriced, while the other looks like dead money.” – The Valuentum Team Key Takeaways 1) We view the deal between Lockheed Martin and Leidos as largely a wash for both sets of shareholders. 2) We like that Lockheed Martin … Read more

Defense Dividends Remain Solid; Little Valuation Opportunity Present

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Image Source: Sikorsky S-70 (H-60) Black Hawk, Martijn By Kris Rosemann The defense industry continues to face pressure in the face of weak funding and competing budget priorities, and malaise in the global economy could add pressure to those seeking growth from foreign sovereigns. Having an already strong backlog will certainly help to a degree, and ongoing cyber threats, “The Global Pandemic of Cybercrime, Cyber Espionage and Cyber Warfare,” and preparation for modern-day warfare and all its complexities will post both challenges and opportunities for many, “Annual US Defense Spending Still 85% Higher Than Year of September 11 Attacks.” Defense contractors generally are strong free cash flow generators, and as a result often have reliable and competitive dividends, not to mention … Read more

Surveying the Aerospace Arena

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The reasons for liking commercial aerospace, or constituents involved in the production of commercial aircraft, are many and varied. The liberalization of air travel between global point-to-point markets has facilitated expansion in not only leisure travel but also business travel between countries. The advent of the low-cost-carrier model in the likes of Southwest (LUV) and others just like it around the globe has made air travel affordable to those that it once had “priced out.” The growing middle class in developing countries has paved the foundation for continued passenger growth, something that should be expected for decades to come. The collapse in jet fuel costs has made the global airline industry, or those involved in the transporting of people from … Read more

Alcoa Disappoints in Third Quarter, China Weakness Prevalent

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Alcoa (AA) no longer is the industrial bellwether it once was as the global economy migrates more toward a service orientation, but the aluminum giant still has its hands in a lot of end markets. The company’s third-quarter results, released October 8, showed revenue falling 11% on a year-over-year basis, and modest net income of $0.07 per share, excluding special items. Acquisition and divestitures muddied the waters, but the general take was a negative one. The company is doing the best it can to migrate away from the volatility of its lower-margin operations, focusing its efforts on value-add operations, and while it is making progress, the company remains tied to the broader economic environment and the pricing pressures that inevitably … Read more