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Markets Up Big; Upside Volatility

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Image shown: The S&P 500 ETF (SPY) since August 2017. The index has broken through support and is now bouncing back to resistance. By Brian Nelson, CFA Good morning everyone, Are you watching these markets? This is incredible. The Dow finished down 660 points yesterday (briefly dropping 700 points), and today, the Dow is currently trading up 600 points at the time of this writing. Granted, there was Apple’s (AAPL) poor first-quarter 2019 guidance yesterday and the strong jobs report today, but this volatility is not “normal,” no matter what others are saying. A couple announcements up front. For those that already ordered our book Value Trap, I will send you the pdf download to your email address just to make sure … Read more

Brace for More Volatility

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Image shown: The S&P 500 ETF (SPY) since August of last year. The markets have broken through key support levels, and now support has become resistance. Volatility remains heightened since the low-vol ETN blew up in February. This article is the introduction to both the Dividend Growth Newsletter and High Yield Dividend Newsletter, both of which will be released today due to the holiday January 1. By Brian Nelson, CFA Markets are facing big pressure on the trading session January 3. There’s more to the story than rising interest rates. There’s more to the story than the US-China trade war. There’s more to the story than concerns about the political environment. Price-agnostic (indexing and quant) trading, as I outline in … 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 December 14

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Below we provide a list of firms that raised their dividends during the week ending December 14. 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 AES (AES): now $0.1365 per share quarterly dividend, was $0.13. Albany (AIN): now $0.18 per share quarterly dividend, was $0.17. AT&T (T): now $0.51 per share quarterly dividend, was $0.50. Balchem (BCPC): now $0.47 per share quarterly dividend, was $0.42. C.H. Robinson Worldwide (CHRW): now $0.50 per share quarterly dividend, was $0.46. CenterPoint (CNP): now $0.2875 per share quarterly dividend, was $0.2775. CNB Community Bancorp (CNBB): … Read more

Earnings Roundup: Bellwethers and Big Name Dividend Payers

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Image Source: Mike Cohen Let’s take a look at some high-profile earnings reports of this week, including those from Boeing, Caterpillar, 3M, AT&T, and Verizon. By Kris Rosemann Boeing Raises Full-Year Guidance Former simulated Dividend Growth Newsletter portfolio idea Boeing (BA) reported third-quarter results October 24, and a strong showing enabled management to increase its guidance for the full year. Revenue in the third quarter advanced 4% on a year-over-year basis thanks to higher defense volume and services growth as the company works to build the latter into a $50 billion business in the next five to ten years from its current $12+ billion run rate. The company’s operating margin faced pressure (GAAP operating margin contracted by two percentage points) as … 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

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

The Most Important Topic in Stock Investing

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President of Equity Research, Brian Nelson, discusses why price vs. value is the paramount consideration in stock investing. Brian Nelson, CFA: This is Brian Nelson from Valuentum Securities. Today, I wanted to talk about a number of investment concepts that I think are absolutely paramount for every investor to know.  The very first concept is price versus value, and this one is paramount to any investment process. Now I’m not just giving this lip service–this is just one of the core concepts of investing, equity investing. The reality of stock investing is that each company has a present value of future free cash flows that it generates, and those future free cash flows roll up to a fair value, the … Read more

M&A Roundup: Sprint and T-Mobile Finally Official, Marathon Petroleum to Become Nation’s Largest Refiner

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Image Source: Mike Mozart A number of notable deals hit the wires over the weekend or Monday morning. Lets’ take a quick look. We expect to update our reports on the respective companies in the coming days. By Kris Rosemann Key Takeaways Sprint and T-Mobile are officially tying the knot. Though the deal faces regulatory scrutiny, we think T-Mobile shareholders are getting the best of the deal. If the transaction is consummated and synergies are achieved as planned, both sets of shareholders should be happy though. The wireless telecom industry will continue to be extremely debt and capital intensive, however. We think the Sprint-T-Mobile deal will ultimately get approved, but we are not particularly fond of betting on how regulatory … Read more