PYPL

Video: We Expect A Huge Market Flush! Looking to “Raise” Incremental Cash

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Video: Valuentum’s Brian Nelson, CFA, breaks down the current market environment, highlighting reasons for the poor market sentiment driven by “tapped out” consumers and investors alike. He expects a big market “flush,” and a challenging next couple years but remains a big fan of stocks for the long haul. Valuentum continues to seek to “raise” incremental cash in the simulated newsletter portfolios as it prepares to weather the storm. Video length: ~10 minutes. –——— Tickerized for holdings in the SPY. Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this … Read more

ICYMI (Aug 19) — ALERT — PYPL, META, GOOG, V — Making Some Big Changes in the Simulated Best Ideas Newsletter Portfolio!

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This note was emailed to members August 19. Alert >> Image Shown: We are very happy with the overall “performance” of the simulated Best Ideas Newsletter portfolio, which is carving out 2.6 percentage points of relative outperformance so far in 2022 on a price-only basis, as shown in the table above. However, we’re making some big changes to the simulated newsletter portfolio today on some of our favorite names. Our best ideas continue to be in the simulated Best Ideas Newsletter portfolio, the simulated Dividend Growth Newsletter portfolio, the simulated High Yield Dividend Newsletter portfolio, the ESG Newsletter portfolio, and the Exclusive publication, as well as with our additional options commentary. “So when it comes to using data, you can think … Read more

Global Payments Buying EVO Payments as Fintech Industry Consolidates

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Image Shown: Global Payments Inc is in the process of acquiring EVO Payments Inc. Image Source: Global Payments Inc – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan Global Payments Inc (GPN) announced it would acquire EVO Payments Inc (EVOP) for $34 per share through an all-cash deal worth ~$4.0 billion by enterprise value. As its name would suggest, Global Payments provides payment technology and software solutions to customers in over 100 countries. By acquiring EVO Payments, which focuses on providing payment technology and services to small and medium-sized businesses in over 50 markets worldwide, Global Payments will extend its reach into new markets (including Chile, Germany, Greece, and Poland) while enhancing its presence in existing markets (including … Read more

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

Stocks Up 70%+ Since COVID-19 Pandemic Bottom, Best Ideas Outperforming So Far in 2022

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Image Source: Mike Cohen By Brian Nelson, CFA Investors are building in near worst-case scenarios for future free cash flow expectations across our coverage universe in most cases, and it may not make a lot of sense, in our view, given the resilient nature of the global economy through thick and thin. Within the discounted cash flow model that we use to derive the fair value estimates for companies in our coverage, we apply a 10-year baseline (discount) Treasury rate of 4.5%, which is still meaningfully above the current 10-year Treasury rate that is now hovering around 3.5%. What that means is that there still remains an adequate margin of safety within our analytical framework before we might grow concerned … 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

Weekly: We’re Bullish on This Self-Inflicted Market Sell-Off; Plus Meta (Facebook), PayPal, Consumer Staples, and HPQ

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Dear members: — This Valuentum Weekly is not taking on its traditional form for a number of important reasons as we want to hammer home some of our opinions in this volatile market environment. — First, I want to highlight the Recession Resistant/Consumer Staples industry, which comprises 30 fine names, many with strong dividend growth prospects. All of their stock and dividend reports have been refreshed on the website for your convenience. The stock reports for the Recession Resistant/Consumer Staples industry can be accessed by link below this introductory note. — Second, I wanted to address the sell-off that the markets have experienced to start 2022. The SPDR S&P 500 Trust ETF is down roughly 6% so far year-to-date. Nothing … Read more

Weekly: Why We Missed Big on T and FB; Overpriced Staples, Our Call To Action; and More!

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In this Valuentum Weekly, in video form, President of Investment Research Brian Nelson, CFA, explains why Valuentum missed big on T and FB, how volatility on names with huge market caps is spiking recklessly, and why the call to action in the book Value Trap remains as relevant as ever given current incentives. ———- Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.    Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. … Read more

Undervalued PINS, SNAP Rallying; FB Incredibly Mispriced, and Refreshed Consumer Discretionary Reports

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Image: Valuentum’s Periodic Screener, February 4.  — By Valuentum Analysts — Two of the most undervalued stocks in our coverage Pinterest, Inc. (PINS) and Snap Inc. (SNAP) are indicated to rally hard February 4 after issuing positive earnings reports, providing further evidence of the importance of the discounted cash flow process and the magnet that intrinsic value estimates are to stock prices. Pinterest is indicated up ~14%, while Snap is indicated up ~47% based on the latest information we have. — The refreshed Valuentum periodic data screener is now available for download on our website (it can be found in the ‘Stock Screens’ section in the left column of our website). The periodic data screener, which also includes updated fair value estimates on … Read more