MDT

Earnings Update on the Medical Devices Industry Featuring Zimmer Biomet, Edwards Lifesciences, and Intuitive Surgical

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Image Source: Zimmer Biomet The outperformance of the medical devices industry continues unabated in 2017. The momentum underscores that the steep sell-off in the second half of 2016 was likely an overreaction. We’re updating our previous take of Zimmer Biomet, along with a brief earnings update on Edwards Lifesciences and Intuitive Surgical. By Alexander J. Poulos Zimmer Biomet Continues to Perform Shares of Zimmer Biomet (ZBH) came under heavy selling pressure upon the release of its recent earnings report on April 27, but we were content with the update as its diversified revenue stream continues to perform, in our view. Zimmer is in the process of integrating recent acquisitions, which continue to augment revenue, and the top line advanced 3.8% … 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

Panera Eaten Up; SeaDrill’s End, Cisco’s Dividend Hike and Much More

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Let’s go around the horn with recent investment-related news. Let’s say goodbye to Panera, talk about SeaDrill’s infamous demise, follow up on the Coach dividend saga, address Cisco’s payout strength and attractive valuation, update readers on Medtronic’s portfolio optimization initiatives, and try to reason through Tesla’s recent price surge.   By Kris Rosemann and Brian Nelson, CFA Goodbye Panera I think most of us were surprised a bit Wednesday morning, April 5, to see Panera Bread (PNRA) taken private by JAB Holding Company for $315 per share in cash. Shares of Panera started the year just above the $200 price tag, so the buyout is a nice payoff for investors that have been holding strong in the fast-casual concept. JAB … Read more

Can Vertex Pharmaceuticals Dominate the Race to Treat Cystic Fibrosis?

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Tickerized for holdings in the XLV and IBB. Cystic Fibrosis is a rare disease that afflicts an estimated seventy-five thousand patients worldwide. Vertex Pharmaceuticals is the first to market with a combination treatment to treat a portion of the overall patient population. Will Vertex win the race to bring forth a triple therapy to treat the vast majority of those afflicted? By Alexander J. Poulos Cystic fibrosis (CF) is a recessive genetic disorder. The patient that is afflicted will carry two copies of the cystic fibrosis conductance regulator protein (CFTR) gene. The CFTR gene allows the body to produce the CFTR protein, whose function is to remove chloride from the cells. Patients that have CF will suffer from a “thickening” … Read more

#14? You Can’t Control The Market

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Image shown: Wall Street Journal front pages from the Financial Crisis — a reminder that an investor cannot control the markets.

Should this be added to the “13 Steps…” piece?

Looking Closely at Zimmer Biomet

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Medical technology companies have taken their share of lumps as of late, but the long-term may be too bright for investors to ignore Zimmer Biomet’s shares. By Alexander J. Poulos and Brian Nelson, CFA The medtech field offers an intriguing combination of high-margin growth coupled with defensive characteristics as the end product is considered recession resistant. To add context, an individual who requires a knee transplant may wait a bit before having the surgery, but as the joint disintegrates the need will hasten irrespective of economic conditions. The ebbs and flows of the economic cycle have little to do with such a decision, in most cases. That said, the field remains fiercely competitive with many upstarts that have innovative technologies, … Read more

Tough Month – My Goodness

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By Brian Nelson, CFA The market rallied hard this month and seemed to leave a lot of the Dividend Growth Newsletter portfolio ideas behind. I’m not going to sugarcoat the results: The Dividend Growth Newsletter portfolio disappointed this month, and for that I’m sorry.  A lot of it may be “explainable” in light of what happened on Election Day 2016, however. I think a lot of investors have shifted capital from the stronger dividend payers to the more-speculative ones in hopes that a new, pro-business Trump administration will be their saving grace. We hope so, but Trump cannot be President forever, and dividend growth investors should consider a long-term perspective, in my opinion, especially when it comes to compounding payouts … Read more

Earnings Insight – Medtronic’s Free Cash Flow Story

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Let’s cover some ground on Medtronic’s (MDT) calendar third-quarter report, its second-quarter fiscal 2017 results. By Brian Nelson, CFA What management said: “Q2 revenue was disappointing and did not meet our expectations. We faced issues that affected our growth, including slower than expected revenue as we await new product introductions, particularly in CVG and Diabetes,” said Omar Ishrak, Medtronic chairman and chief executive officer. “Despite this revenue shortfall, we produced a strong improvement in operating margins and double digit constant currency earnings per share growth.” The scoop: Medtronic probably did more to frighten investors with its use of the word “disappointing” in its fiscal second-quarter press release, issued November 22, than anything fundamental. Fiscal second-quarter revenue increased 4%, or 3% … Read more

Pharma, Biotech and How to Consider Investing In It

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The Valuentum analyst team digs deep into recent trends in big pharma and biotech from the lofty pricing of drugs to political and competitive pressures to ETF considerations and beyond. ~10 mins. If you cannot view the podcast below, please view the transcript below or select the link here. Tickerized for holdings in the XLV and IBB. Brian Nelson, CFA Gilead’s (GILD) hepatitis C regimen, almost a hundred thousand dollars. Vertex’s (VRTX) cystic fibrosis drug — hundreds of thousands of dollars per year. Have the drug companies lost their mind? This is Brian Nelson from Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos — and we are going to talk everything healthcare, biotech… Mr. … Read more

EVERYTHING DIVIDENDS + 3 TOP IDEAS

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The Valuentum analyst team explains the difference between the adjusted Dividend Cushion ratio and its unadjusted counterpart. The success of the Dividend Growth Newsletter portfolio is covered, and Valuentum’s top 3 dividend growth ideas are unveiled. ~13 minutes. If you are unable to view the video below, please select the link here or view the transcript below. Kris Rosemann: Hello and welcome to the Valuentum Securities podcast. My name is Kris Rosemann and with me today is Chris Araos and Brian Nelson, the president of equity research and ETF analysis here at Valuentum, and today we’re going to be discussing the Dividend Cushion ratio, the Dividend Growth Newsletter portfolio, and some of our favorite dividend ideas on the market today. So … Read more