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Paper: Value and Momentum Within Stocks, Too

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Please select the image below to download, “Value and Momentum Within Stocks, Too:” Abstract: This paper strives to advance the field of finance in four ways: 1) it extends the theory of the “The Arithmetic of Active Management” to the investor level; 2) it addresses certain data problems of factor-based methods, namely with respect to value and book-to-market ratios, while introducing price-to-fair-value ratios in a factor-based approach; 3) it may lay the foundation for academic literature regarding the Valuentum, the value-timing, and ultra-momentum factors; and 4) it walks through the potential relative outperformance that may be harvested at the intersection of relevant, unique and compensated factors within individual stocks. To download the full report, please click here (pdf). ———- Actual results … Read more

SVB Financial, Silvergate Capital, Credit Suisse Reveal Cracks in Global Financial System

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Image: SVB Financial looks to be collateral damage of the Fed’s rate-hiking cycle, and we can’t rule out that other regional banks could have also managed interest-rate risk wrong. Shares of SVB Financial have collapsed, and other banks could be facing similar issues that have yet to come to light. Image Source: TradingView By Brian Nelson, CFA We don’t include any banks in the newsletter portfolios, but we include slight “exposure” to the Financial Select Sector SPDR (XLF) in the Best Ideas Newsletter portfolio, primarily for diversification reasons. We have never been fans of the banking business model, and here is what we wrote in the first edition of Value Trap: Theory of Universal Valuation: It’s likely we will have … Read more

CubeSmart Raises Dividend 14% But We’re Monitoring High Net Debt Load and Deteriorating Occupancy Rates

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Image Source: CubeSmart By Brian Nelson, CFA On December 7, CubeSmart (CUBE) raised its quarterly dividend 14%, to $0.49 per share, which implies a forward estimated dividend yield of ~4.5% at the time of this writing. Though we’ve grown more cautious on REITs the past many months in light of rising interest rates, we include a number of REITs across our newsletter portfolios, and CubeSmart is included in the High Yield Dividend Newsletter portfolio. Image Source: CubeSmart The REIT has economic interests in self-storage properties across roughly two dozen US states and also operates a sizable management platform for self-storage properties owned by third parties. CubeSmart’s owned portfolio (properties it has a direct economic interest in) was comprised of ~610 … Read more

CubeSmart Is a Tremendous High Yielding Idea

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Image Shown: CubeSmart is one of our favorite high yielding ideas. Image Source: CubeSmart – June 2022 IR Presentation By Callum Turcan CubeSmart (CUBE) reported second quarter 2022 earnings that missed consensus top-line estimates but beat consensus bottom-line estimates. Last quarter, the self-storage real estate investment trust (‘REIT’) posted strong same-store net operating income (‘NOI’) growth due to its high occupancy rates and substantial pricing increases seen of late. CubeSmart also raised its full-year guidance for 2022 in conjunction with its latest earnings report, and that comes on the heels of the firm previously raising its full-year guidance during its first quarter of 2022 earnings update in April 2022. We continue to be huge fans of CubeSmart and include shares … Read more

Public Storage Is One of Our Income Generation Favorite Ideas

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Image Shown: Shares of Public Storage, one of our favorite income generation ideas, have boomed higher over the past five years with room for additional upside. By Callum Turcan Public Storage (PSA) reported second quarter 2022 earnings that missed consensus top-line estimates but beat consensus bottom-line estimates as the self-storge industry in the US continues to benefit from robust demand. Surging home prices have made many households turn to self-storage options as an economical way to maximize their living space. During its second quarter earnings update, Public Storage also moderately raised its full-year guidance for 2022 which we appreciate. We are huge fans of Public Storage as the real estate investment trust (‘REIT’) is able to generate sizable “excess” free … Read more

High-Yielding Life Storage Is One of Our Favorite Self-Storage REITs

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Image Source: Life Storage Inc – First Quarter of 2022 Earnings Press Release By Callum Turcan We are big fans of the self-storage industry as real estate investment trusts (‘REITs’) operating in this space have historically generated “excess” free cash flows after covering their total dividend obligations. Life Storage Inc (LSI), a self-storage REIT, is one of our favorite income generation ideas. As of this writing, shares of LSI yield ~3.9% after Life Storage pushed through a nice 8% sequential increase in its dividend in July 2022, bringing its quarterly payout up to $1.08 per share ($4.32 on an annualized basis). During the past decade, Life Storage’s dividend growth track record has impressed (its quarterly payout has more than tripled … Read more

High-Yielding CubeSmart Is A Compelling Income Generation Idea

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Image Source: CubeSmart – June 2022 IR Presentation By Callum Turcan The self-storage industry is home to several of our favorite income generation ideas due to the ability for companies operating in this space to generate substantial free cash flows after covering their total dividend obligations. Due to the favorable tax regime, most of these firms tend to be structured as real estate investment trusts (‘REITs’). CubeSmart (CUBE) is a self-storage REIT that is entirely focused on the U.S. market, and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. As of this writing, shares of CUBE yield ~4.0%, and our fair value estimate for the firm stands at $56 per share, well above where shares of CUBE … Read more

Public Storage Getting Ready To Report First Quarter 2022 Earnings

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Image Shown: Public Storage, a longtime idea in our High Yield Dividend Newsletter portfolio, has seen its share price skyrocket over the past year with room for additional upside, in our view. By Callum Turcan After the market close on May 3, the self-storage real estate investment trust (‘REIT’) Public Storage (PSA) intends to report its first-quarter earnings for 2022, which will be followed up by an earnings conference call a day later. Shares of PSA have been a long-time idea in the High Yield Dividend Newsletter portfolio, and we continue to be enormous fans of the name. The high end of our fair value estimate range sits at $445 per share of Public Storage, indicating that shares of PSA have … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!