SIEGY

Boeing In Negative Headlines Again; Part of 737 Max Fuselage Blows Out During Commercial Flight

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  Image: Boeing’s shares have been quite volatile the past couple years. By Brian Nelson, CFA On January 6, Boeing (BA) received some more bad news. Part of a fuselage installed on one of its new eight-week old 737 Max 9 aircraft blew out on an Alaska Airlines (ALK) flight. There were no reported injuries because of the mishap, but understandably passengers were undoubtedly shaken up. Some posted videos of the experience. Boeing had been working hard to get back on track with customer perception of the safety of its 737 MAX line-up, and we view the incident as yet another hiccup in the firm’s relations with the public. Key Boeing supplier Spirit AeroSystems (SPR) installed the part on the … Read more

Norfolk Southern’s Environmental and Safety Troubles Plague Stock

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Image: Norfolk Southern’s environmental troubles have sent its stock back to pre-pandemic levels. The company is yet another example of why companies cannot take for granted how their operations can negatively impact the environment. Image Source: TradingView By Brian Nelson, CFA Environment, Social, and Governance (ESG) dynamics have always commanded a large share of executives’ mindshare, but ESG investing has taken on a more prominent role in investing given the preference of many investors to hold stock in companies that share their personal values. But this isn’t lip service. Entities that aren’t taking the highest care when it comes to protecting the environment and ensuring employee/consumer safety can face a whirlwind of negative publicity and huge backlash that can have … Read more

Moderna’s Personalized Cancer Vaccine (PCV) Could Be a Game-Changer When Combined with Merck’s KEYTRUDA

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Image: Moderna’s therapeutics pipeline continues to advance, and the company recently received positive news regarding its personalized cancer vaccine (PCV), ID # mRNA-4157, when combined with Merck’s KEYTRUDA. Image Source: Moderna By Brian Nelson, CFA Modern medicine continues to advance. Our favorite idea in biotech remains Vertex Pharma (VRTX), which has a fantastic and commercialized cystic fibrosis portfolio and exposure to CRISPR technology, but the latest data to turn our heads came from Moderna’s (MRNA) personalized cancer vaccine (PCV). Investors perhaps are most familiar with Moderna in part because it has produced one of four authorized COVID-19 vaccines available for use in the US: Pfizer (PFE)-BioNTech’s (BNTX), Novavax’s (NVAX), Johnson & Johnson’s (JNJ) and Moderna’s. The PFE-BNTX and MRNA vaccines … Read more

Something New!

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Hi everyone: To stay true to our mission, you’ll find something new regarding our methodology. In the coming weeks, you’ll see this table in our work going forward. We just wanted to let you know. We appreciate your membership very much!   ——————————————— About Our Name But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.                          — Warren Buffett, Berkshire Hathaway annual report, 1992 At Valuentum, we take Buffett’s thoughts one step further. We think the best opportunities arise from an understanding of … Read more

New Payment Option! Valuentum Research Update!

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Hi everyone: — We’re excited to say that we’re adding additional payment flexibility at Valuentum. — Many members have expressed interest in paying via other providers, and we have added Square to the mix. You can use credit or debit card or bank (ACH) to pay via invoice. — With all of the goings-on in the financial technology and payments space, we wanted to continue to provide members options to pay their memberships how they want and through who they want. You can always reach out to us at info@valuentum.com. — You’ll notice that we’ve also tightened our focus at Valuentum during the past 12-24 months in advance of what has certainly become a more difficult 2022 than even some … Read more

Honeywell’s Dividend Growth Supported by Promising Cash Flow Growth Outlook

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Image Source: Honeywell International Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan We view Honeywell International Inc (HON) as one of the best industrial plays out there and include shares of HON as an idea in the Dividend Growth Newsletter portfolio. Honeywell has exposure to the aerospace and downstream energy markets–industries that were hit hard by the coronavirus (‘COVID-19’) pandemic but are now recovering in earnest–and to the proliferation of e-commerce and “smart buildings.”  Furthermore, in the event that a bipartisan infrastructure bill currently awaiting approval in the US House of Representatives gets signed into law, Honeywell has exposure to the expected surge in domestic infrastructure investments. Our fair value estimate for Honeywell sits at $240 … Read more

German Industrial Conglomerate Siemens Remains an Attractive Income Generation Idea

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Image Shown: Siemens AG sees the global industrial economy staging a recovery from the COVID-19 pandemic, which in turn supports the firm’s outlook. The company raised its full-year guidance when Siemens published its latest earnings report. Image Source: Siemens AG – Second Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan The German-based industrial conglomerate Siemens AG (SIEGY) has four core industrial business operating segments that are as follows: Digital Industries (‘DI’), Smart Infrastructure (‘SI’), Mobility (‘MO’), and Siemens Healthineers. Its operations are supported by Siemens Financial Services (‘SFS’) which provides support for its industrial businesses and services to third-parties. Siemens has put up strong underlying operational and financial performance of late and remains an interesting income generation idea. … Read more

General Electric Provides Upbeat Outlook for 2021

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Image Shown: An overview of GE’s cash flow forecasts on a divisional basis for 2021. Image Source: General Electric – Fourth Quarter of 2020 IR Earnings Presentation By Callum Turcan The ongoing coronavirus (‘COVID-19’) has weighed negatively on the industrial sector for most of 2020, before the space started to recover during the latter part of the year. On January 26, industrial conglomerate General Electric Company (GE) reported fourth quarter earnings for 2020 that beat consensus top-line estimates but missed consensus bottom-line estimates. The company’s business operating segments are broken down into its various GE Industrial divisions (‘Power,’ ‘Renewable Energy,’ ‘Aviation’ and ‘Healthcare’) and GE Capital. What really impressed us was that GE Industrial’s free cash flow came in at … Read more

Honeywell Is a Tremendously Resilient Enterprise and a Rock-Solid Dividend Payer

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Image Shown: Honeywell International Inc expects its financial performance will post a significant rebound in 2021. Please note this guidance assumed a safe and viable COVID-19 vaccine would get distributed by early-2021, though distribution activities started before then in December 2020, which supports Honeywell’s near-term outlook. Image Source: Honeywell International Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan We added one of our favorite industrial stocks Honeywell International Inc (HON) to the Dividend Growth Newsletter portfolio on November 27 (link here) as the firm’s operational and financial performance has proven to be incredibly resilient in the face of the ongoing coronavirus (‘COVID-19’) pandemic. As global health authorities begin to put an end to the pandemic, aided … Read more