NVO

Valuentum Economic Castleâ„¢ Rating Update

by

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

Surveying Fourth Quarter Earnings at Health Care Firms

by

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

Johnson & Johnson’s Long-term Tailwinds Are Intact

by

Diversified medical and consumer products firm Johnson & Johnson (click ticker for report: ) reported solid fourth-quarter results Tuesday morning. Sales jumped 8% year-over-year to $17.6 billion, roughly in-line with consensus expectations. Earnings were slightly better than anticipated, growing 5.3% year-over-year to $1.19 per share—after adjusting for several special items. Johnson & Johnson’s international expansion outpaced its domestic growth, with international sales jumping 8.9% on a reported basis (11.2% excluding currency) while its domestic business grew 6.8%. The acquisition of Synthes was the big needle-mover in the period, as it was responsible for 5.6 percentage points of the total sales increase. For the year, the growth rate of the firm’s Medical Devices and Diagnostics’ segment exceeded that of other segments, though pharmaceutical results … Read more

ICYMI — Video: Will Hasty Policy Facilitate the Next Leg Down, or Do We Have It Coming Anyway?

by

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

How to Think About Corporate Tax Reform

by

Dividend Increases/Decreases for the Week of August 11

by

Below we provide a list of firms that raised their dividends during the week ending August 11. 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                          AdvanSix (ASIX): now $0.16 per share quarterly dividend, was $0.14. Annaly Capital Management, Inc. PFD SER G (NLY.PG): now $0.6136 per share quarterly dividend, was $0.4062. Annaly Capital Management 6.95% PFD SER F (NLY.PF): now $0.6582 per share quarterly dividend, was $0.6345. Ashtead Group plc (ASHTY): now $0.85 per share interim dividend, was $0.55. AstraZeneca (AZN): now $0.93 per share interim dividend, was $0.465. … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

by

A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Earnings Roundup for the Week Ended Sunday, April 19, Covering Companies Across the Board

by

By Callum Turcan Let’s take a look at several earnings reports across numerous industries in this article as the ongoing coronavirus (‘COVID-19’) pandemic forces the global economy to a crawl. Please note that as these reports primarily cover the first quarter of calendar year 2020, the impact of the pandemic has yet to be truly reflected in corporate earnings. That said, these reports still provide an important glimpse into what to expect going forward and how companies are responding to the pandemic. By ticker in alphabetical order: BBBY, CPSS, ISRG, LAKE, MRTN, OFLX, SCHW, TSM Bed Bath & Beyond Inc (BBBY) Shares of BBBY shot up on April 16 after reporting fourth quarter and full-year results for its fiscal 2019 … Read more

Generic Pharmaceuticals: Patent Expiration and Low Global Utilization Rates Create Opportunities

by

Key Takeaways: ·       The generic pharmaceutical industry will benefit from a patent expiry “mountain” in 2015. ·       Penetration and utilization rates of generics vary considerably by country. Japan, Italy, Spain, France, and Australia are most likely to see the greatest increases in generic penetration rates. ·       We expect further M&A activity in Japan, as global players seek to gain a generics stronghold in this under-penetrated, yet burgeoning pharmaceutical market. ·       Emerging market growth will offer significant opportunities for firms levered to Latin America and South Africa. ·       The potential for biosimilars remains a key catalyst for the group. ·       Ideas o       Teva Pharma (TEVA) is our favorite idea in the generics space thanks primarily to its upside valuation potential and global position. We’re particularly big fans … Read more