MSFT

Microsoft’s Fantastic Free Cash Flow; LinkedIn Deal Completed

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Image Source: Microsoft Microsoft completed its acquisition of social media platform LinkedIn during the course of the second quarter of its fiscal 2017. Otherwise, it was business as usual for the software giant. By Kris Rosemann Microsoft (MSFT) reported another solid quarter January 26, “Podcast: Microsoft — Still One of Our Favorites”. Though we prudently took some profits in the software giant more recently, the company’s stock remains firmly entrenched as a core holding in the Dividend Growth Newsletter portfolio, as it has been since portfolio inception. Shares are pushing up against the high end of our fair value estimate range, though we continue to emphasize Microsoft’s fantastic Dividend Cushion ratio, which helps reinforce our dividend thesis on the company. … Read more

Dividend Growth Newsletter: Evaluating Our 2016 Dividend Growth Picks

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“…the average return of our dividend growth picks has blown the return of the S&P 500 out of the water during the past two years, and in each of the past two years.” By Brian Nelson, CFA What say us of our dividend growth stock-selection skills? First, on a portfolio level, I am very proud to say that the Dividend Growth Newsletter portfolio has advanced in each of the past two years, while the SPDR S&P Dividend ETF (SDY) has been significantly more volatile, declining during 2015, and bouncing back during 2016. For supposedly steady-eddy dividend growth indices, they tend to be quite volatile relative to the Valuentum Dividend Growth Newsletter portfolio, one of the main reasons why I don’t … Read more

The Next Industrial Revolution – Internet of Things

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Image Source: Skyworks Summary: ·        The Internet of Things has been called ‘the next Industrial Revolution,’ and the revolution is already well underway. ·        Explosive growth can be expected in the number of devices connected to the Internet in coming years, and the data extracted from such devices will enable businesses to make significant value creating improvements to operations. ·        The proliferation of the Internet of Things will take a combined effort from the end user of the technology to smart device manufacturers to software providers to networks. ·        The newsletter portfolios have significant exposure to early large-cap adopters of the IoT. We love the potential we see in some of our favorite names to capitalize on ‘the next Industrial … Read more

Image: Returns Following the Trump Victory

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To download the table for easier viewing, please select the link . Financials: Trump’s Treasury Secretary choice Steven Mnuchin wants to repeal most of the burdensome Dodd-Frank legislation. A steepening yield curve is helping banks and may drive improved net interest margins in coming periods. Goldman Sachs is ripping higher, leading the Dow’s charge.   Crude Oil: The world is moving to a better balance in supply/demand dynamics in the energy markets. OPEC is talking, has agreed to cuts, and expectations for improved economic growth are helping energy resource pricing. High-beta companies such as Continental Resources are rallying hard.   Energy: Capital spending cuts are bolstering free cash flow in the upstream space as energy resource pricing improves. Reduced regulations could help … 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

Hit or Miss in the Video Gaming Entertainment Industry

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The Valuentum analyst team talks the latest and greatest trends in the video game entertainment industry from tried-and-true titles to the financial positions of the largest players to retail big box and beyond. ~9 mins. Kris Rosemann: Welcome to Valuentum’s podcast. I’m Kris Rosemann and joining us today is Mr. Chris Araos. Chris, you have a strong background as an observer of trends in the video game entertainment industry. How would you say the world of gaming is shaping up these days? Chris Araos: Well, Kris — a lot has changed in video gaming in just the past five years thanks to the emergence of more-advanced mobile phones, which are just great devices to play games on. Unlike PCs or … Read more

Podcast: Microsoft — Still One of Our Favorites

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The Valuentum analyst team talks about the financial strength of Microsoft, its deal with LinkedIn, the possibility of a winner’s curse, its growing cloud business, and a setback with the Surface. ~6 mins. If you cannot view the video, please view the transcript below or select the link here. Tickerized for Microsoft and Salesforce. Brian Nelson, CFA This is Brian Nelson for Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos. Today, we would like to talk about Microsoft (MSFT). We’ve been very very skeptical of its deal with LinkedIn (LNKD) as of late and I think to help us walk through some of our concerns but also the possible benefits of a tie-up with … 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

Cloud Lifting Microsoft Shares Toward All-Time Highs

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“…Microsoft flexed its free cash flow generating muscles in the first quarter of fiscal 2017. The software giant reported free cash flow of just under $9.4 billion, an increase of nearly 25% from the year-ago period despite capital expenditures jumping approximately 60%. Such strong free cash flow generation helped the firm advance its net cash position, excluding long-term equity and other investments of ~$10.5 billion, to an impressive $62.2 billion, up from $59.8 billion at the beginning of the quarter.” – Kris Rosemann By Kris Rosemann Microsoft (MSFT) reported a strong quarter October 20, both in terms of financial performance and in terms of ongoing momentum in the transformation of its business. Non-GAAP revenue, which takes into account revenue deferrals … Read more

After-Hours: MSFT +5.9%, PYPL +4.6%

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A holding in the Dividend Growth Newsletter portfolio and a holding in the Best Ideas Newsletter portfolio are indicated up after hours October 20. You may remember us taking some profits on Microsoft (MSFT) following its deal to acquire LinkedIn (LNKD), but did you know the company has been the prime example of our cash-flow-based dividend methodology for years? Microsoft was added to the Dividend Growth Newsletter portfolio at inception at a tender price of ~$26 per share. Our roughly 2.5% current weighting (yes, it is still one of our favorite dividend growth ideas!) is indicated up in after-hours trading, now to all-time highs near $61 per share, even past those of the dot-com bubble days! We’re not going to … Read more