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Earnings Roundup: Big Name Dividend Payers

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Image Source: Simon Cunningham Let’s take a quick look at the fourth quarter earnings reports of a few wide-ranging, big-name dividend payers, all of which are leaders in their respective industries. Included in this article: Boeing, McDonald’s, and AT&T. By Kris Rosemann Boeing Reports Record Fourth Quarter Results Shares of aerospace giant and former simulated Dividend Growth Newsletter Portfolio idea Boeing (BA) rallied following its fourth quarter report, released January 30, as it turned in record fourth quarter marks for revenue, operating profit, and GAAP earnings per share. Revenue in the period advanced 14% on a year-over-year basis thanks to record commercial aerospace deliveries and higher defense and services volumes. Its ‘Commercial Airplanes’ segment led the way in terms of … Read more

Consider Selling Discipline = Systematic, Forward-looking, Repeatable

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Image shown: An illustration of Valuentum’s call on Kinder Morgan during 2015. You can read about this in more detail in the Preface of Value Trap: Theory of Universal Valuation. For a consider-selling discipline to be successful, it must be systematic, forward-looking and repeatable. The Valuentum process worked equally well with General Electric during 2017 (image later in note). No changes to simulated newsletter portfolios. By Brian Nelson, CFA Good morning everyone! The markets took a shellacking yesterday with the Dow Jones Industrial Average (DIA) falling over 300 points during the trading session January 22. Had there not been a near-100 point leap in the Dow during the past few minutes of trading, the fallout may have been worse. Most are … Read more

Conference Call Coming Soon, Catch Up This Weekend

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Image shown: The markets continue to rally significantly since the near-term bottom in December. Here’s the email we sent to members December 26.  No changes to simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio (contact us if you missed the latest notification regarding the simulated High Yield Dividend Newsletter portfolio). This article was sent to members via email January 19. That email can be accessed at the link that follows this article. Conference Call Monday, January 28, 11amET/10amCT. We’ll talk about website navigation, how to use the stock and dividend reports, and dig deep into our capital-appreciation and dividend growth methodology. Details to follow, but add this date/time to your calendar. Read what some of our members have … Read more

Markets Continue to Recover

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Image shown: The markets continue to rally significantly since the near-term bottom in December. The decision to move the cash “weightings” to zero in the simulated portfolios of the Best Ideas Newsletter and Dividend Growth Newsletter during the trading session December 27 has been quite rewarding for members that have been following our research and newsletters. The S&P 500 SPDR. No Changes to Simulated Newsletter portfolios. This article was sent to members via email January 18. The original email can be accessed via the link that follows this article. Brian Nelson, CFA The S&P 500 (SPY) continues to march higher in this young 2019, and we trust many of you are pleased with what is turning into quite a nice … Read more

Story Remains the Same at Netflix

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Image Source: Netflix quarterly report Netflix continues to grow its subscriber base and pump out compelling content for audiences. However, its substantial cash burn will not subside in the near term, and its sizable debt load continues to grow. By Kris Rosemann Our opinion of Netflix (NFLX) remains unchanged. The company has some attractive qualities, but they are buried underneath a mountain of financial obligations. Management continues to point to the social relevancy of its programming, but we continue to point to its sizable cash burn. We understand the thought process behind Netflix publishing the notable increases in Instagram (FB) followers of the talent of its original content in its fourth quarter earnings release January 17. If it can continue … Read more

Markets Still Bouncing Nicely

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Image shown: This holiday season was mighty hectic, and not many were anticipating the volatility we experienced. Here’s where the simulated Best Ideas Newsletter and simulated Dividend Growth Newsletter portfolios went to “fully invested,” reducing a 30% and 20% cash “weighting” at the high end of their respective ranges for each portfolio, respectively. Email. No Changes to Simulated Newsletter portfolios Brian Nelson, CFA After what perhaps has been the most volatile December in stock market history, the markets are off to the races in January. We continue to watch the broader equity markets closely, but directionally the call to go to “zero” in cash after the close December 26 has worked out, for anyone that received the notification after that date. … Read more

In the News: Apple vs. Qualcomm, Intel and AMD, Visa in China, and Netflix’s Pricing

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Let’s take a look at some of the top stories on some of the biggest names in tech. Apple secured a legal victory in Germany, rumors swirl Intel and AMD, Visa’s efforts in China may have hit a speedbump, and Netflix is enacting its largest price hike ever on its US subscribers. By Kris Rosemann Though an end may be far from imminent, the legal battle between Qualcomm (QCOM) and simulated Best Ideas Newsletter portfolio idea Apple (AAPL) took a turn in Apple’s favor after a patent lawsuit filed by Qualcomm was thrown out by a German court. Qualcomm had previously won a case that enabled it to ban the sale of older iPhones in Germany–it also recently won a … Read more

Value Trap, More Volatility; We’re Waiting and Watching

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Image shown: The decision to remove GE from the simulated newsletter portfolios when we did may have been our best call yet.  In this note, let’s talk about the importance of reading Value Trap, learn why we’ve gone “fully invested,” talk a little bit about put options, learn some of the intricacies of the Valuentum process, find out where to find VBI rankings to download and sort, and talk about some of our recently-highlighted ideas in the simulated newsletter portfolios. No Changes to Simulated Newsletter portfolios Brian Nelson, CFA Trust you are having a wonderful Monday morning! I hope that many of you made the conference call last Thursday at 11amET, but if you didn’t, we’ll have another one coming soon. … Read more

The Intricacies of the Valuentum Process

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Let’s take a quick overview of the Valuentum processes for capital appreciation and dividend growth with a discussion of how we use the Valuentum Buying Index and the Dividend Cushion ratio. By Brian Nelson, CFA There is a lot behind the Valuentum processes for capital appreciation and dividend growth, respectively, and both the criteria for inclusion to either the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio are different. Our best ideas at any time, however, are always included in the simulated newsletter portfolios. We use our research as a means to identify new ideas for consideration in the simulated newsletter portfolios, as well as to consider removing ideas from the simulated newsletter portfolios. As it relates to … Read more

Catching the Bottom?

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Image shown: The depths of how far the S&P 500 (SPY) has fallen more recently, and the timing of the decision to move to being “fully invested” in simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio.   No Changes to Simulated Newsletter portfolios. This article was sent to members via email January 9. That email can be found at the link that follows this article. By Brian Nelson, CFA On the evening of December 26, we emailed members that we were moving to “fully invested” in both the simulated Best Ideas Newsletter and simulated Dividend Growth Newsletter portfolio. First of all, please let me apologize. I wanted to stay in front of members during one of the most volatile times … Read more