MRK

The M&A Environment Remains Robust

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Let’s take a look at a few deals that hit the wires recently – some proposed, some speculated. Analog Devices (ADI) Scoops Up Hittite Microwave (HITT) Norwood, MA (06/09/2014) – Analog Devices, a global leader in high-performance semiconductors for signal processing applications, and Hittite Microwave Corporation, an innovative designer and manufacturer of high performance integrated circuits, modules, subsystems and instrumentation for RF, microwave and millimeter wave applications, announced that the two companies have entered into a definitive agreement whereby ADI will acquire Hittite for $78 per share in cash. The closing price of Hittite’s common stock on June 6, 2014 was $60.56 per share. This agreement reflects a total enterprise value for Hittite of approximately $2 billion. ADI expects to … Read more

Update: Digging Into the Valuentum Dividend Cushion

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Sign Up to Receive our Dividend Growth Newsletter! Add the High Yield Dividend Newsletter to Your Membership! History has revealed that the best performing stocks during the previous decades have been those that shelled out ever-increasing cash to shareholders in the form of dividends. In a recent study by Ned Davis Research, S&P 500 stocks that initiated dividends or grew them over time registered roughly a 9.6% annualized return since 1972 (through 2010), while stocks that did not pay out dividends or cut them performed poorly over the same time period.  Such analysis is difficult to ignore, and we believe investors may be well-rewarded in future periods by finding the best dividend-growth stocks out there. As such, we’ve developed a rigorous dividend investment … Read more

Thank you…

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By Brian Nelson, CFA Earlier this week, I received an email from a colleague and valued member of our services. I wanted to share it here for others to read. I haven’t included his name, but if he wants me to, I can add it in. It is filled with wisdom, experience and kindness. And it really made my year to read his words. The Valuentum community, I believe, is the best community of investors out there. Sir, if you do happen to read your own email on our site, we very much have appreciated your feedback, and we hope to continue to live up to your praises. We are dedicated, and our team has been rejuvenated by your words. … Read more

Surveying Fourth Quarter Earnings at Health Care Firms

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The broader equity markets have been under pressure for much of January, and while it may be tempting to consider completely exiting stock investing for a time, we’re staying the course with both of our actively-managed portfolios. We had been expecting a contraction in price-to-earnings (P/E) multiples across the broader market (see our outlook here), and the performance thus far in 2014 has not been surprising. In case you may have missed it, I sent out some very important thoughts over the weekend to keep in mind as uncertainty and volatility increase through the course of 2014: Stay focused on @Valuentum portfolio holdings (best ideas), #asset allocation (cash) in portfolios and #prudence in allocating new capital. — Brian Nelson, CFA … Read more

Three Reasons Why Dividend Growth Investors Are Quite Savvy

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A version of this article appeared on our website on October 1, 2013. There are many different approaches to investing, but we think dividend growth investors are quite savvy, especially when they combine a rigorous dividend growth process in the form of the Valuentum Dividend Cushion ratio with the valuation rigors behind the Valuentum Buying Index. Let’s examine the three reasons why we think dividend growth investors are a smart group in the age of ultra-low interest rates. #1. Fool Me Once, Shame on You…Fool Me Twice, Shame on Me Today’s dividend growth crowd has seen enough. First, they witnessed the dot-com bubble (1997-2000), a period in stock market history where firms’ stock prices soared in some cases as a result … Read more

Dividend Increases for the Week Ending November 29

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Below we provide a list of firms that raised their dividends during the week ending November 29. 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 Becton, Dickinson and Company (BDX): now $0.545 per share quarterly dividend, was $0.495. CBL & Associates Properties (CBL): now $0.245 per share quarterly dividend, was $0.23. Donaldson Co (DCI): now $0.14 per share quarterly dividend, now $0.13. Glacier Bancorp (GBCI): now $0.16 per share quarterly dividend, was $0.15. Hormel Foods (HRL): now $0.20 per share quarterly dividend, was $0.17. McCormick & Company … Read more

Pfizer’s and Merck’s 3Q Performance

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Whereas revenue advanced in Bristol-Myers’ (BMY), Eli Lilly’s (LLY), and AbbVie’s (ABBV) respective calendar third-quarter results, the same cannot be said about the performance of Pfizer (PFE) and Merck (MRK) during the equivalent period. Pfizer’s third-quarter report, released Tuesday, showed that net revenue dropped 2% as strength in its smallest segment, ‘Oncology’, failed to offset weakness at the rest of the firm. Pfizer continues to deal with the impact of product losses of exclusivity (Lipitor) and the expiration of its Spiriva collaboration in certain countries, which overwhelmed growth in its blockbuster Lyrica (up 11%), Celebrex (up 13%), Inlyta (up 186%), and Xalkori (up 92%). Sales of Pristiq advanced 15%. Emerging market expansion tallied 5% in the period. The US basis … Read more

Surveying 3Q Performance from Big Pharma: Bristol-Myers, Eli Lilly, and AbbVie

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Bristol-Myers On Wednesday, Bristol-Myers (BMY) showcased the strength of its key marketed products in its third-quarter report. The firm experienced a 9% increase in net sales and a 12% jump in non-GAAP diluted earnings per share. Bristol-Myers also confirmed its 2013 non-GAAP earnings per share range of $1.70 to $1.78 per share. Looking at its current marketed portfolio, Abilify, its largest revenue generator, faced a 16% decline, though this was offset by strength in Yervoy, which grew 33%, Orencia, which grew 22%, and Sprycel, which grew 20%. Yervoy doesn’t lose exclusivity in key markets until after 2020 (2023 in the US), Orencia loses exclusivity in Japan, the EU, and the US between years 2017 and 2019, and Sprycel doesn’t lose … Read more

Jobs Slashed in Hopes of Operating Margin Expansion

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As the battle over the budget rages on, pharmaceuticals giant Merck (click ticker for report: ) and German conglomerate Siemens AG (click ticker for report: ) announced massive job cuts targeted at reducing annual operating expenses. Merck On Tuesday, Merck announced a bold plan to cut $2.5 billion in annual operating expenses, with the lion’s share of savings derived from marketing and R&D cuts. The firm anticipates $1 billion in cost savings by the end of 2014, with the remainder realized in 2015. 7,500 jobs have already been cut, but the firm will slash an additional 8,500 jobs in order to achieve its targeted cost savings. The restructuring is expected to result in pre-tax costs of $2.5-$3 billion, though only … Read more

Pfizer and Merck Show Revenue Declines; Pipelines Remain Strong

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Pfizer’s (click ticker for report: ) and Merck’s (click ticker for report: ) second-quarter performances revealed ongoing revenue weakness due to key patent expirations, but we like the progress they are making in their respective drug pipelines. In Pfizer’s second quarter (results released Tuesday), revenue fell 4% from the same period a year ago, after adjusting for currency. Strength in ‘Oncology’ (up 28%) from Inlyta and Xalkori and a couple key products (namely Lyrica and Celebrex) did little to offset the slide in operational revenues at its ‘Primary Care’ and ‘Established Products’ segments, where revenue dropped 15% and 7%, respectively. We point to the loss of exclusivity of Lipitor and heightened generic competition for the difficult revenue performance. In Merck’s … Read more