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Resetting Your Mental Model

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Image Source: affen ajlfe A version of this article was originally published on our website October 6, 2013. Having the right mental model and using the right information can be the reason why you win or lose in investing. “What is the definition of timeliness? Many believe it is getting information to investors as quickly as possible after an event, or updating something every single day or week for immaterial information. I believe in a different definition of timeliness. I believe timeliness is using all information available in a mosaic approach to accurately predict the event before it even happens. Take Kinder Morgan as the latest example. We were the only ones predicting what was going to happen before it did. To investors, … Read more

Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds

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Image: President of Investment Research Brian Nelson, CFA By Brian Nelson, CFA A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception. Though the book focuses more on the life and times of founder Jim Simons and dedicated only a page or two to the fall of Long-Term Capital Management (LTCM), another quant fund that went belly-up during the late 1990s, it was nonetheless a thoroughly interesting and enjoyable read. But why I am bringing up one of the most successful quant … Read more

Improving Our Coverage

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Valuentum continues to scour the stock market for new ideas. We’ll be following the set of companies in this list via commentary on our website and a data sheet updated periodically. By Valuentum Analysts The list of companies in the download below were previously covered by our team via 16-page report and dividend report fashion. Going forward, we are now covering these companies with commentary on the website and via a data sheet updated periodically. This will be a much better use of members’ time, especially as members scour our Best Ideas Newsletter, Dividend Growth Newsletter, stock methodology, dividend methodology, and the hundreds of stock valuation reports and dividend reports on our website, available through the Symbol search box.  We … Read more

Zimmer Biomet’s Near-Term Outlook Is Less Rosy Than Management Would Have You Believe

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Shares of Zimmer Biomet are trading on lofty expectations and investors may be in for a shock should Zimmer Biomet continue to underperform during the second half of 2019. Foreign currency headwinds continue to grow as seen through the strength of the US Dollar Index during the third quarter of 2019. We like Zimmer Biomet’s deleveraging activities but think its share price has gotten ahead of itself given these rising headwinds, lack of top line growth, and deteriorating net operating cash flows. We are staying away from Zimmer Biomet. By Callum Turcan Zimmer Biomet (ZBH) makes medical devices and shares of ZBH yield 0.7% as of this writing. The company as it stands today was created through Zimmer Holdings acquiring … Read more

Our Reports on Stocks in the Medical Devices Industry

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Image Source: U.S. Embassy Kyiv Ukraine Structure of the Medical Devices Industry The medical devices industry is heavily regulated and characterized by rapid technological change. Firms have been forced to compete on price due to economically-motivated buyers, consolidation among healthcare providers, and declining reimbursement rates. Healthcare reform measures have put additional pressure on procedure rates and market sizes. Still, firms can gain advantages by developing products with differentiated clinical outcomes or by creating patent-protected technology. Since most constituents hold important patents or trade secrets, we tend to like the group. We’ve optimized our health care coverage, the reports of which can be found here.

Tandem Diabetes Care: An Emerging Leader in Diabetes Technology

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Image Source: Tandem Investor Presentation Over the past year or so, Tandem Diabetes Care has gone from jockeying for position in the domestic insulin pump market to a global leader in diabetes care technology. Significant growth catalysts remain in place, and the company expects to soon begin realizing meaningful efficiencies of scale as robust top-line growth continues. By Kris Rosemann Overview Tandem Diabetes Care (TNDM) is an innovative medical device company specializing in products for people with insulin-dependent diabetes. It incorporates modern and innovative technology into its offerings, and its competitive advantage is based on its unique consumer-focused approach. The company has commercially launched six insulin pumps, all of which are based in its proprietary technology platform, in the US, … Read more

Valuentum Stock Screeners

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This article was sent to members via email December 29. That email can be accessed at the link that follows this article. By Brian Nelson, CFA Hi everyone, I wanted to provide an update with respect to Valuentum’s stock screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, or data that is important with respect to the investment decision-making process. We publish screens in each of the monthly newsletters, but we also provide a basic weekly screener for download on the left column of the website, “Download Weekly Stock Screener (xls) — login required.”   We also have other products. The more robust DataScreener, for example, is part of the quarterly Financial … Read more

Market Mayhem — Alerts for Members

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During these extremely volatile times, it’s important to stay focused. On December 15, we informed all of our members to “Pay Attention.” Shortly thereafter, we notified members of the potential for a stock market technical breakdown. This morning, we offered a pre-market briefing about the importance of thinking about portfolio protection. For Best Ideas Newsletter and Dividend Growth Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=e2406cd6-c113-4344-8731-493f33fc44a4&id=preview For High Yield Dividend Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=b3ba530f-38b3-489a-ac96-2961dca89c6b&id=preview For Exclusive members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=ba6d90c0-4433-48b2-9b8a-aac4ddf9006e&id=preview We’re here for any questions. Please just let us know how we can help! Kind regards, Brian Nelson, CFA  brian@valuentum.com

Dividend Increases/Decreases for the Week Ending August 10

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Below we provide a list of firms that raised their dividends during the week ending August 10. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week 2 Global (JCOM): now $0.425 per share quarterly dividend, was $0.415. Atlantica Yield (AY): now $0.34 per share quarterly dividend, was $0.32. Badger Meter (BMI): now $0.15 per share quarterly dividend, was $0.13. Barclays (BCS): now $0.1276 per share semi-annual dividend, was $0.1095. Black Stone Minerals (BSM): now $0.3375 per share quarterly dividend, was $0.3125. Blue Hills Bancorp (BHBK): now $0.20 per share quarterly dividend, was … Read more

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution

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The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones. “The most important item over time in valuation is obviously interest rates…If interest rates are destined to be at low levels…It makes any stream of earnings from investments worth more money. The bogey is always what government bonds yield….Any investment is worth all the cash you’re going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982…When we had 15 percent short-term rates in 1982, it was silly to pay … Read more