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Steel Dynamics Bets Big on North America’s Industrial Economy
Image Source: Steel Dynamics Inc – June 2020 IR Presentation By Callum Turcan Investor sentiment towards the steel industry is rebounding as the medium- and long-term outlook for global industrial activity has improved markedly since March 2020. The ongoing coronavirus (‘COVID-19’) pandemic has significantly hampered near-term industrial activity, though major fiscal stimulus packages (made feasible through major monetary stimulus programs) launched in various developed nations could provide some relief. Shares of Steel Dynamics Inc (STLD) have recovered meaningfully since their March 2020 lows and are trading a tad below our fair value estimate as of this writing. Shares of STLD yield ~3.6% on an annualized forward-looking basis as of this writing and we give the steel maker a Dividend Cushion … Read more
South32 Is a Great Miner
Image Shown: An overview of South32’s global asset base. We are big fans of the Australian miner. Image Source: South32 – Fiscal 2021 IR Earnings Presentation By Callum Turcan Back in 2015, the mining giant BHP Group Ltd (BHP) spun off South32 (SOUHY). Since then, South32 has seen some major changes to its asset base through a combination of acquisitions, divestments, and organic investments. We include shares of South32’s American depository receipts (‘ADRs’) as an idea in the new ESG Newsletter portfolio (more on that here). Each ADR represents five ordinary shares of South32. South32 is based in Perth, Australia, and we’re huge fans of its pristine balance sheet, stellar free cash flow generating abilities, top-notch asset base, and bright … Read more
US Congress Is Getting Ready to Pass a Massive ~$2.2 Trillion Fiscal Stimulus Bill
Image Shown: US equities have started to recover some of their lost ground as the likelihood that the US Congress will pass a massive ~$2.2 trillion fiscal stimulus and emergency spending package, dubbed the CARES Act, has increased significantly over the past week as seen through the bounce in the SPDR S&P 500 ETF Trust (SPY). President Trump has clearly indicated that he intends to sign such a bill into law as soon as possible, with the US House of Representatives expected to take up the legislation this upcoming Friday morning on March 27. By Callum Turcan On March 25, the US Senate worked late into the night to secure a bipartisan compromise on a massive ~$2.2 trillion fiscal stimulus … Read more
VBI Ratings Not as Impressive As We Would Have Liked in 2022
Image: How the VBI rating system has ranked equities so far this year. By Brian Nelson, CFA At Valuentum, we use the Valuentum Buying Index (VBI) to source ideas into diversified simulated newsletter portfolios, and the VBI may be most applicable to the simulated Best Ideas Newsletter portfolio, where we generally like to include ideas when they register a high VBI rating and remove them when they register a low VBI rating. We always use the VBI in a portfolio setting and never by itself. But what about the Valuentum Buying Index ratings, themselves? How did they “perform” during 2022 in one of the worst years for stock market investors in history? Well, not as spectacular as we would have … Read more
Dividend Increases/Decreases for the Week of December 13
Below we provide a list of firms that raised their dividends during the week ending December 13. 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 Abbott Laboratories (ABT): now $0.59 per share quarterly dividend, was $0.55. AGNC Investment Corp. 6.5% DP SH PFD E (AGNCO): now $0.6326 per share quarterly dividend, was $0.4062. Alexandria Real Estate Equities (ARE): now $1.32 per share quarterly dividend, was $1.30. Amgen (AMGN): now $2.38 per share quarterly dividend, was $2.25. Andersons (ANDE): now $0.195 per share quarterly dividend, was $0.190. Andover Bancorp, Inc. … Read more
Dividend Increases/Decreases for the Week December 3
Below we provide a list of firms that raised their dividends during the week ending December 3. 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 Absecon Bancorp (ASCN): now $2.10 per share annual dividend, was $2.00. AES (AES): now $0.158 per share quarterly dividend, was $0.150. Amgen (AMGN): now $1.94 per share quarterly dividend, was $1.76. Axis Capital Holdings (AXS): now $0.43 per share quarterly dividend, was $0.42. Bank of Montreal (BMO): now CAD 1.33 per share quarterly dividend, was CAD 1.06. Bank of Nova Scotia (BNS): now CAD 1.00 per … Read more
VIDEO/TRANSCRIPT: 2021 Valuentum Exclusive Call: Inflation Is Good
Valuentum’s President Brian Michael Nelson, CFA, explains why investors should not fear inflation, why government agencies such as the Fed and Treasury are prioritizing something other than price discovery, why the 10-year Treasury rate is a must-watch metric, and why Valuentum prefers the moaty constituents in large cap growth due to their net cash rich balance sheets, tremendous free cash flow generating potential, and secular growth tailwinds. Transcript: << Valuentum’s Best Ideas On behalf of the Valuentum team, I’d like to present to you our prepared remarks for the Valuentum Exclusive conference call for 2021. It is both an honor and a privilege to share our team’s work with you, and I personally am very grateful for your continued interest … Read more
Valuentum Weekly Web Commentary
Stocks mentioned in this edition: Airbus (EADSY), Anthem (ANTM), Boeing (BA), Canada Pacific (CP), Chipotle (CMG), Cigna (CI), CSX (CSX), International Flavors & Fragrances (IFF), Lockheed Martin (LMT), NextEra (NEE), Rockwell Collins (COL), Stanley Black & Decker (SWK), Ulta Salon (ULTA), Union Pacific (UNP), UnitedHealth (UNH), Utilities Select Sector SPDR ETF (XLU), Vulcan Materials (VMC), W. W. Grainger (GWW) Chipotle Not Showing Signs Of Recovery What we originally believed to be a transient issue has turned into an extended public relations nightmare for fast-casual restaurant chain Chipotle (CMG). Though we do not necessarily question the safety of its food, we view its brand as damaged and the potential reward that would come along with a return to favor in the … Read more
ICYMI — Video: Will Hasty Policy Facilitate the Next Leg Down, or Do We Have It Coming Anyway?
President of Investment Research and award-winning author of Value Trap: Theory of Universal Valuation Brian Nelson explains how US policymakers are stuck between a rock and a hard place, and how the market may be factoring in too high of a probability of a return to normalcy before 2021. This and more in the latest video report. Summary Make sure you review Value Trap on Amazon. Do so here. We think those that bought equities near the bottom of this swoon may be looking to take profits at present levels. The market is currently reflecting an 80%-85% probability of a return to normalcy before 2021, which we believe is too high at this time. Our main concern is that government … Read more