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Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Around Retail: Aspirational Brands Battle Consumer Perception

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Summary · After positive data reads in the months of October and November, things may finally be looking up for retail spending, but the impact of discounting looms large for many in the space. There are pockets of weakness and strength. · Aspirational and luxury goods manufacturers and retailers are not only subject to the pressures of the promotional retail environment, but also are subject to additional outside forces such as tourism and brand perception. While not dead, mall traffic has been challenging. · Whether it is next-generation wearable technology, a refined online presence, a reduction in markdown allowances, or an enhanced shopping experience, luxury goods companies continue to invest for sustainable growth. Fossil and Richemont have been caught by … Read more

Retail Weakness: Blame the Election?

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Image Source: DonkeyHotey By Kris Rosemann The 2016 election cycle has been one characterized by unprecedented amounts of criticism and accusations, of both the personal and political variety, and it may be true that the perceived political environment from the view of the general public has not been in such a state of uncertainty for some time. Let’s not get into the details of who called whom what in last night’s Presidential debate, but some parents were reportedly not allowing their children to watch the debate out of fear that their values or outlook on democracy could be skewed. But could the uncertainty surrounding the election actually be enough to impact consumer activity at retail outlets and restaurants? Some are … Read more

Tiffany Dazzles in Second Quarter; Coach Now Yielding ~4%

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Be sure to catch Valuentum’s Brian Nelson discussing Tiffany’s reports on CNBC Asia at 9:30 PM CST today. The video clip will be posted to the website as soon as it is made available. Luxury jewelry maker Tiffany (TIF) reported fantastic second-quarter results Wednesday and raised its bottom-line guidance for the second time this year and in as many quarters. Tiffany has been benefiting from a modernization of its classical jewelry line-up thanks to the ongoing success of its newest ATLAS collection (shown right) and TIFFANY T jewelry collection (shown below). The ATLAS collection is named for the mythic Greek god and showcases Roman numerals in designs symbolic of strength and freedom on pieces ranging from pendants and earrings to … Read more

Valuentum Economic Castleâ„¢ Rating Update

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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 Recent M&A Action

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The environment for merger and acquisition (M&A) activity has arguably never been better thanks to healthy balance sheets, historically low interest rates, and equity prices that speak of optimistic times. Just in the past few weeks, we’ve witnessed a number of deals come to the fore. Let’s take a look at a few of these deals and offer our quick take on the transaction. Healthcare Actavis (ACT) – Forest Labs (FRX) DUBLIN, Ireland and NEW YORK, Feb. 18, 2014 /PRNewswire/ — Actavis plc (NYSE: ACT) and Forest Laboratories, Inc. (NYSE: FRX)…announced that they have entered into a definitive agreement under which Actavis will acquire Forest for a combination of cash and equity valued at approximately $25 billion or $89.48 per … Read more

Tiffany’s Bottom Line Sparkles in 3Q; Pricing Power Evident

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Tiffany’s (TIF) third-quarter results, released Tuesday, showed solid revenue expansion and fantastic operating leverage. Worldwide net sales jumped 7% on a reported basis and 11% on a constant-currency basis; comparable sales advanced 7%. Reported sales in the Americas region increased 4% thanks in part to growth in Tiffany’s New York flagship store. In the Asia-Pacific region, reported revenue leapt an impressive 27%; comparable sales in the region jumped 22%. Negative currency impacts hurt reported sales in Japan, but underlying, constant-currency performance in the country was solid. Even in Europe, a region that continues to struggle for economic expansion, Tiffany revealed 7% reported growth thanks in part to strength in the United Kingdom. The company’s profit margin performance was also wonderful … Read more

Tiffany Is Getting Back on Track

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Luxury jeweler Tiffany (click ticker for report: ) posted decent second quarter results Tuesday morning. Sales increased 4% year-over-year to $926 million, falling slightly short of consensus estimates, but not enough to warrant concern. Earnings per share were 15% higher than the year-ago period at $0.82, several pennies higher than consensus expectations. Source: Valuentum, Company Filings Same-store sales growth at Tiffany wasn’t bad during the second quarter, up 5% year-over-year on a constant-currency basis. However, it is hard to ignore the two-year trend that is clearly declining, as the two-year stacked comp shows (see light blue line on right in image above). Americas Recent trends in the Americas region reveal that much of Tiffany’s potential growth in the market has … Read more

Firms Raising Their Dividends in the Week Ending March 29

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Very few firms raised their dividend during the week ending March 29. To access our dividend reports, please click here. Firms Raising Their Dividends This Week: Camden National (CAC): now $0.27 per share quarterly dividend, was $0.25. City Holding Company (CHCO): now $0.37 per share quarterly dividend, was $0.35. The Female Health Company (FHCO): now $0.07 per share quarterly dividend, was $0.06. Shoe Carnival (SCVL): now $0.06 per share quarterly dividend, was $0.05. Signet Jewelers (SIG): now $0.15 per share quarterly dividend, was $0.12. Washington Federal (WAFD): now $0.09 per share quarterly dividend, was $0.08.