ORCL

Valuentum’s Unmatched Product Suite

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Hi everyone! — We continue to be huge believers in the concept of enterprise valuation, which emphasizes the key cash-based sources of intrinsic value–net cash on the balance sheet and strong and growing future expected free cash flows. Meta Platforms, Inc. (META) and Alphabet Inc. (GOOG) remain two of the most underpriced ideas on the market today, and we remain huge fans of their tremendous long-term investment prospects. — There are a couple things worth reminding readers, however. A good relevant rule of thumb I learned early in my career working for my first portfolio manager is that a stock’s return in the near term is driven roughly 40% by the market, 30% by the industry it operates in, and 30% … Read more

Nelson: I Have Been Wrong About the Prospect of Near-Term Inflationary-Driven Earnings Tailwinds

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Transcript During the past several weeks, we’ve grown increasingly concerned about the health of consumer-tied entities across not only the consumer staples but also the consumer discretionary spaces. Many consumer staples entities, while raising prices, aren’t raising them fast enough to drive operating-income and bottom-line expansion, while many consumer-discretionary companies are facing higher freight and logistics costs and weaker performance in China, perhaps best revealed by Nike’s most recently-reported quarter, where inventory advanced 23% compared to the prior-year period. The tell-tale sign about the health of the consumer may be Amazon (AMZN) Prime Day, which is coming up on July 12-13, but based on many of the reports we’ve monitored this past earnings season, even if sales are strong on … Read more

Valuentum’s Dividend Growth Strategy ‘Outperforming’

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Image: The Valuentum Dividend Growth strategy has delivered thus far in 2022. With the S&P 500, as measured by the SPY, down 18.1% (negative 18.1%) thus far in 2022 and the S&P Dividend ETF (SDY) down 6.7% (negative 6.7%), the Valuentum dividend growth strategy, as measured by the hypothetical performance of the Dividend Growth Newsletter portfolio (as shown above), is down an estimated 4.6% (negative 4.6%) so far in 2022, all on a price-only basis. Though two percentage points better than the S&P High Yield Dividend Dividend Aristocrats Index doesn’t seem like much, the large cap tilt of the simulated Dividend Growth Newsletter portfolio makes such “outperformance” significant and material. The benefits of a dividend growth strategy, in general, have also … Read more

Dividend Growth Idea Oracle Showing Serious Growth Momentum

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 13, Oracle Corporation (ORCL) reported fourth quarter earnings for fiscal 2022 (period ended May 31, 2022) that beat both consensus top- and bottom-line estimates. The tech giant also provided favorable constant currency revenue growth guidance for its cloud businesses for fiscal 2023. Shares of ORCL initially surged higher in the wake of its latest earnings report before drifting modestly lower along the decline in broader equity markets. We include Oracle as an idea in the Dividend Growth Newsletter portfolio and shares of ORCL yield ~1.9% as of this writing. Quarterly Update In the fiscal fourth quarter, Oracle’s GAAP revenues grew by 5% year-over-year and were up … Read more

Taiwan Semi Firing on All Cylinders

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Image Source: Taiwan Semiconductor Manufacturing Company – First Quarter of 2022 IR Earnings Presentation By Callum Turcan Semiconductor components, or “chips,” are the bedrock of the digital economy. Taiwan Semiconductor Manufacturing Company (TSM) operates numerous semiconductor fabrication sites all of the world, with its major manufacturing hub located in Taiwan, that produce chips utilized in all sorts of applications. Furthermore, Taiwan Semi is one of only a handful of companies capable of producing high-end chips at scale. Taiwan Semi’s business model revolves around producing chips for third-parties as the firm does not design semiconductor components itself, and the company is the largest semiconductor foundry in the world (foundries are chip fabrication sites specifically built to meet third-party needs). We are … Read more

Oracle Expects Its Solid Revenue Growth Trajectory Will Continue Into This Fiscal Quarter

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Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On March 10, Oracle Corporation (ORCL) reported third quarter earnings for fiscal 2022 (period ended February 28, 2022) that matched consensus top-line estimates but missed consensus bottom-line estimates. The company’s revenue growth came in at a decent clip last fiscal quarter, and that trajectory is expected to continue into the current fiscal quarter, according to guidance management announced during Oracle’s latest earnings call. We include Oracle as an idea in the Dividend Growth Newsletter portfolio, and shares of ORCL yield ~1.7% as of this writing. Financial Update In the fiscal third quarter, Oracle’s GAAP revenues grew 4% and its non-GAAP constant currency revenues grew 7% year-over-year. Strong growth at … Read more

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

Oracle Buys Cerner

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Image Source: Oracle Corporation – September 2019 Financial Analyst Meeting Presentation By Callum Turcan Oracle Corporation (ORCL) is one of our favorite dividend growth ideas that also earns high marks as it concerns ESG (environmental, social, and governance) investing standards. We use our proprietary ESG scoring matrix, which scores firms on a 1-100 scale (100 being the best), to gauge their adherence to ESG practices. Oracle scores a nice 96 ESG rating with a strong showing across all three categories. We include shares of ORCL as an idea in both the Dividend Growth Newsletter and our ESG Newsletter portfolios. The high end of our fair value estimate range sits at $101 per share of Oracle, comfortably above where shares are … Read more

Adobe Signals Near Term Growth Rate Slowing Down, Longer Term Outlook Still Quite Bright

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Image Source: Adobe Inc – December 2021 Financial Analysts Meeting IR Presentation By Callum Turcan On December 16, Adobe Inc (ADBE) reported fourth quarter earnings for fiscal 2021 (period ended December 3, 2021) that modestly beat consensus top- and bottom-line estimates. However, shares of ADBE plummeted in the wake of its latest earnings report as management signaled that the firm’s near term growth rate would slow down in fiscal 2022 versus levels seen in fiscal 2021. Investors were apparently hoping for more, though in our view, Adobe’s longer term growth outlook is still quite bright. Our fair value estimate sits at $576 per share of Adobe. Earnings Update The company’s GAAP revenues were up 20% year-over-year last fiscal quarter, reaching … Read more

Oracle Shares Surge!

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Image Source: Oracle Corporation – November 2019 IR Presentation By Callum Turcan Shares of Oracle Corporation (ORCL) surged in the wake of the tech giant reporting its second-quarter fiscal 2022 earnings (period ended November 30, 2021) on December 9, which beat both consensus top- and bottom-line estimates. We include Oracle as an idea in both the Dividend Growth Newsletter and ESG Newsletter portfolios (more on that here), and we couldn’t be more pleased with the company’s performance of late. Its pivot towards cloud-oriented offerings is playing out quite favorably as Oracle’s growth outlook is now quite bright. Earnings Update and Outlook Oracle’s GAAP revenues were up 6% year-over-year last fiscal quarter, hitting $10.4 billion. This was made possible via strong … Read more