LMT

Lockheed Martin Boosts Guidance

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Image Source: Lockheed Martin Corporation – First Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Geopolitical tensions are on the rise worldwide. In recent weeks, Russian forces started massing on the border with Ukraine (though reportedly, those forces are beginning to pull back) as acrimony between Western governments and Russia continues to grow while the situation in Ukraine (i.e., Russia’s annexation of Crimea and involvement in eastern regions of Ukraine) remains in paralysis. Tensions between the US and China are building as well with an eye towards trading relations, espionage of all kinds, and cyber-attacks. The geopolitical backdrop indicates that the trajectory of defense spending is likely to continue growing in key developed and developing nations worldwide going … Read more

Three Newsletter Portfolio Ideas Post Stellar Earnings Updates: JNJ, LMT, MSFT

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Image Source: Johnson & Johnson – Fourth Quarter of Fiscal 2020 Earnings IR Presentation By Callum Turcan In alphabetic order by ticker: JNJ, LMT, MSFT Three of the newsletter portfolio ideas recently reported stellar earnings updates and provided promising outlooks that we want to draw to our members’ attention. With global health authorities working towards putting an end to the coronavirus (‘COVID-19’) pandemic, aided by ongoing vaccine distribution efforts, the outlook for the global economy is bright and getting brighter. Johnson & Johnson (JNJ) We include healthcare conglomerate Johnson & Johnson (JNJ) in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Shares of the company have been on a steep upward climb since early November 2020 as investors … Read more

ALERT: Raising Cash in the Newsletter Portfolios

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January 27, 2021 ALERT: Raising Cash in the Newsletter Portfolios We are raising the cash position in the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to 10%-20%. — By Brian Nelson, CFA — Our research has been absolutely fantastic for a long time, but 2020 may have been our best year yet. You can read the 2020 recap here. With the S&P 500 trading within our fair value estimate range of 3,530-3,920 (and the markets rolling over while showing signs of abnormal behavior), we’re raising the cash position in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to 10%-20%. — For more conservative investors, the high end of this range may even be larger, especially … Read more

Lockheed Makes an Intriguing Acquisition

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Image Source: Lockheed Martin Corporation – December 2020 IR Presentation covering Lockheed Martin Corporation’s pending acquisition of Aerojet Rocketdyne Holdings Inc By Callum Turcan On December 20, Lockheed Martin Corporation (LMT) announced it was acquiring Aerojet Rocketdyne Holdings Inc (AJRD) for $56.00 per share in cash, or $51.00 per share after taking into account a special $5.00 per share pre-closing cash dividend payment that Aerojet Rocketdyne plans to pay out. The deal has a total equity value of ~$5 billion when including the special dividend component and is expected to close in the second half of 2021. In our view, this deal is highly complementary to Lockheed Martin’s existing operations. Combining Aerojet Rocketdyne’s propulsion and power systems business segments with … Read more

We Expect to Raise Our Fair Value Estimate of Honeywell

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Image: Honeywell’s Third Quarter 2020 Earnings Release Slide Deck By Brian Nelson, CFA With GE’s (GE) fall from grace years ago, Honeywell (HON) has taken the reigns as one of Valuentum’s top industrial ideas. That said, we don’t include Honeywell in any newsletter portfolio given weakening fundamentals and an increased net debt position, but it remains top of mind should our existing holdings start to register ratings on the Valuentum Buying Index that may start to point to some profit taking. Honeywell yields just north of 2%. We continue to expect our newsletter holdings to perform relatively better against a strengthening economic backdrop, and that means for us, Honeywell will remain on the bench. During Honeywell’s third quarter, results released … Read more

Lockheed Martin Beats Expectations and Raises Guidance Yet Again

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Image Shown: Lockheed Martin continued to grow its revenues and segment operating profit in the third quarter of fiscal 2020. Image Source: Lockheed Martin Corporation – Third Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On October 20, Lockheed Martin Corporation (LMT) reported third quarter earnings for fiscal 2020 (period ended September 27, 2020) that beat consensus top- and bottom-line estimates. Lockheed Martin’s GAAP sales rose by 9% year-over-year, hitting $16.5 billion, in part due to the company increasing its F-35 aircraft deliveries to 31 in the fiscal third quarter from 28 in the same quarter last fiscal year. Additionally, all four of Lockheed Martin’s core business segments (‘Aeronautics,’ ‘Missiles and Fire Control,’ ‘Rotary and Mission Systems’ and … Read more

Great Day in the Markets!

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Image: The Invesco QQQ Trust, an exchange-traded fund based on the NASDAQ 100 index, had a great day during the trading session October 12, as it leads all major indexes on the year.  — By Brian Nelson, CFA — First of all, a warm welcome to our new members. We recently posted a website overview video on our website here, and please be sure to view our stock report walk-through . At Valuentum, we’re financial publishers, so please be sure to read through how many members use our services here. — The trading session October 12 was a sight to see. The Dow Jones Industrial Average advanced 0.88%, the S&P 500 jumped 1.64%, while the NASDAQ powered ahead an incredible 2.56%. As many of our … Read more

Dividend Increases/Decreases for the Week September 25

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Below we provide a list of firms that raised their dividends during the week ending September 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 Accenture (ACN): now $0.88 per share quarterly dividend, was $0.80. Artesian Resources (ARTNA): now $0.2571 per share quarterly dividend, was $0.2496. Bancolombia S.A. (CIB): now $0.309 per share quarterly dividend, was $0.285. Bank of South Carolina (BKSC): now $0.17 per share quarterly dividend, was $0.16. The First of Long Island (FLIC): now $0.19 per share quarterly dividend, was $0.18. Fortis (FTS): now CAD 0.505 per share … Read more

Dividend Growth Selection in a Low Yield Environment

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Dear members: — John Burr Williams’ historical work The Theory of Investment Value, published in 1938, set the foundation for the widely known discounting mechanism inherent within equity valuation frameworks today. His text is often credited with the origins of the dividend discount model. Though Value Trap: Theory of Universal Valuation identifies enterprise valuation, or the discounted cash flow model (the free cash flow to the firm model, to be precise) as the causal driver of values and prices, the concepts are very similar. Stock values and prices are a function of future expectations. — Today, with highly accommodative Fed and Treasury policy, interest rates are ultra-low, and even yields on junk-rated debt have plummeted. For example, Ball Corp (BLL), a junk-rated credit (jargon … Read more

3 Lessons in Portfolio Management Over 10 Years

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Dear members: — We’re finally getting a pause in the rapid ascent of the markets on September 3rd. Though headlines may look scary and momentum/volatility investors could start to pile on to the downside, a modest retracement is actually a good thing. We continue to focus on the long haul with our processes, and we’re viewing the sell-off as profit taking, for the most part. — In the near term, the markets will also have to digest some speculators betting on mean reversion between “value” (cyclical) versus “growth” (secular), but we maintain the view that the value-versus-growth conversation is largely nonsense (see block quotes below), and mean reversion is something akin to the gamblers’ fallacy, in my humble opinion. Investors should also continue … Read more