MDLZ

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

Keurig Green Mountain Goes Private

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Keurig Green Mountain (GMCR) will be taken private by a JAB Holding Co. led investor group for ~$13.9 billion in cash. The price of ~$92 per share represents a 78% premium to the company’s December 4 closing share price, which was the result of a year of disappointing earnings and questions about the firm’s long-term growth prospects. In its fourth-quarter earnings report, Keurig recorded double-digit declines in net sales, operating income, net income, and diluted income per share. Though the price premium certainly was a surprise (greater than the high end of the fair value estimate range), the buyout hardly comes as a surprise to us. We have been of the opinion that a takeout would the best case scenario … Read more

Dividend Increases for the Week Ending July 24

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Below we provide a list of firms that raised their dividends during the week ending July 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 BancorpSouth (BXS): now $0.10 per share quarterly dividend, was $0.075. Bar Harbor Bankshares (BHB): now $0.255 per share quarterly dividend, was $0.25. Baylake Corp (BYLK): now $0.09 per share quarterly dividend, was $0.08. BBCN Bancorp (BBCN): now $0.11 per share quarterly dividend, was $0.10. B&G Foods (BGS): now $0.35 per share quarterly dividend, was $0.34. Chemical Financial (CHFC): now $0.26 per share quarterly dividend, was $0.24. … Read more

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Merger Chatter Heating Up for the New Year

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With corporate news slow as the New Year’s week unfolds, merger chatter has heated up to fill the void. On Monday, StreetInsider reported that the New York Times (NYT) may be catching the eye of a suitor. Chen Guangbiao, chairman of China Huangpu Renewable Resources Utilization Group Co, is reported to be interested in making a bid for the firm. The likelihood and the terms of an announcement, however, remain extremely vague, and we point to only one source. Newspaper outlets have certainly been of significant interest as of late, and the well-documented declines in newsprint circulation have done nothing to discourage buyers. For one, Amazon CEO Jeff Bezos recently acquired the Washington Post’s namesake earlier this year in what … Read more

Portion Packs Still in Strong Demand at Green Mountain; Free Cash Flow Surges in Fiscal 2013

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On Thursday, Green Mountain (GMCR) reported excellent fiscal fourth-quarter results. Fourth-quarter revenue advanced 22% from the same period a year ago (52-to-52 weeks) thanks to robust brewer sales and portion pack revenue growth (up 11% and 21%, respectively, as adjusted). The 21% increase in portion packs revenue was driven by a 26% increase in unit volume offset by pricing and mix. Portion packs revenue accounted for 74.2% of total net sales in the fiscal fourth quarter. The company’s gross margin expanded 240 basis points during the quarter, to 36%, thanks primarily to favorable green coffee costs and lower labor and overhead manufacturing costs. Non-GAAP operating income advanced to 18.2% of sales in the period from 16.4% in last year’s quarter. … Read more

Dividend Increases for the Week Ending August 9 Included Leggett & Platt and Mondelez

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Below we provide a list of firms that upped their dividends for the week ending August 9. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here (or use our ‘Symbol’ search box in our website header). Firms Raising Their Dividends This Week Anadarko Petroleum (APC): now $0.18 per share quarterly dividend, was $0.09. Badger Meter (BMI): now $0.18 per share quarterly dividend, was $0.17. Bank Mutual Corp (BKMU): now $0.03 per share quarterly dividend, was $0.02. Cogent Communications (CCOI): now C$0.14 per share quarterly dividend, was $0.13. Gamco Investors (GBL): now $0.06 per share quarterly dividend, was $0.05. Hampden Bancorp (HBNK): now $0.06 per share quarterly … Read more

Kraft’s Pricing Power Is Unmatched By Peers in Fourth Quarter; Waiting Patiently for the Break Up

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Kraft (KFT) posted solid fourth-quarter results Tuesday that continued to show the firm’s pricing power. Though we liked the quarter, we remain on the sidelines with respect to Kraft’s shares until after the company separates the firm into two entities later this year: a global-snacks company and a North American grocery products firm. At that time, we’ll be better able to evaluate the investment merits of each separate entity to optimally allocate our capital to the one with the most promise, if such an opportunity presents itself. Kraft’s fourth-quarter revenue jumped 6.6% thanks to a 6.1% jump in organic net revenues, as strong pricing offset declines in volume. However, cost of sales still outpaced revenue expansion, as gross profit growth was … Read more

Kraft Shows Off Pricing Power in Third Quarter; Raises 2011 Outlook

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Kraft (KFT) reported excellent third-quarter results Wednesday that showed significant pricing expansion. The firm raised its outlook for 2011, and we are maintaining our above-market fair value estimate. The firm’s top-line advanced 11.5% led almost exclusively by organic expansion, which was 8.4% in the quarter. We loved that 7 percentage points of the growth was pricing, which signals to us the strength of Kraft’s competitive advantages and pricing power. Volume and mix contributed the balance of the growth. The company noted that momentum is accelerating in North America, that operating results in Europe remain strong, and that it is seeing double-digit growth in developing markets—all positive news. Kraft’s adjusted operating income jumped over 12% thanks to pricing growth, productivity enhancements, … Read more