The “Luck” and “Randomness” of Index Funds
Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.
TGH
Video: Quants! You’re NOT Measuring VALUE and Nelson’s Theory of Universal Value
President of Investment Research Brian Nelson defines the concept of universal value and shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, business-model related analysis. Value does not exist in respective process vacuums! Value is universal. Find out why. Running time: ~10 minutes. Tickerized for Valuentum’s stock and ETF coverage universe. Transcript Hi this is Brian Nelson from Valuentum Securities, and this is the tenth edition of a series that I call “Off the Cuff,” where I get in front of the camera and I talk for ten minutes. This is what we have to talk about today. We have to talk about this concept: The Theory of Universal Value. Value does not exist in vacuums … Read more
Valuentum’s 3 Breakthroughs in the Field of Finance and More
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
Dividend Cushion Ratio Efficacy Undeniable
By Kris Rosemann We weren’t surprised by Costamare’s (CMRE) ~66% cut in its dividend, and readers should have been on the same page. Prior to the cut, the firm registered a -1.5 Dividend Cushion ratio, well below the cutoff for consideration as a safe payout. We have long been concerned with the safety of the dividend, as the above chart depicts. Not only was the quantitative portion of our research spot on with respect to the risk in Costamare’s dividend, but the qualitative side of our research adequately reiterated our concerns. The headline of Costamare’s dividend report: Costamare should not be paying a dividend, in our opinion. Costamare is but one of many dividend cuts the Dividend Cushion ratio has … Read more
Dividend Increases/Decreases for the Week Ending August 12
Below we provide a list of firms that raised/lowered their dividends during the week ending August 12. 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 Altrion (ATRI): now $1.05 per share quarterly dividend, was $0.90. Ares Management (ARES): now $0.28 per share quarterly dividend, was $0.15. Badger Meter (BMI): now $0.23 per share quarterly dividend, was $0.20. (pre-split) Black Stone Minerals (BSM): now $0.2875 per share quarterly dividend, was $0.2625. Broadridge Financial Solutions (BR): now $0.33 per share quarterly dividend, was $0.30. CAE (CAE): now C$0.08 per share quarterly dividend, was … Read more
Flash: Dividend Cushion Ratio Predicts Another Dividend Cut
Textainer Group (TGH), the world’s largest lessor of intermodal containers based on fleet size, announced a cut to its dividend November 3, from the previous quarterly level of $0.47 per share to the present level of $0.24. The news was not expected, with shares of the Bermuda-based company tumbling more than 25% on the day of announcement. When will investors learn the raw, predictive power behind the Dividend Cushion ratio? Textainer had a Dividend Cushion ratio of -3.3 at the time of the cut. Anything below 1 and certainly negative speaks to concern regarding the sustainability of the dividend at the present level. We’ll be adjusting our forward expectations of the dividend, but we’ll also be adding Textainer to this … Read more
Valuentum Economic Castleâ„¢ Rating Update
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
Search Dividend Reports by Company Name: Q to Z
Going forward, please use the ‘Symbol’ search box to download stock and dividend reports of companies you are interested in. The ‘Symbol’ search box can be found in our website header. Image shown from above. Use the active search box in the website header above. Learn more about your membership >> Note: We have now discontinued this list. Please use the ‘Symbol’ search box in the website header for stock and dividend reports. Please read about our Valuentum Dividend Cushion score (ratio) here. Just having access to this valuable metric alone could save your income portfolio thousands of dollars! The past meets the future as we showcase the Valuentum Dividend Cushion scores of Dividend Aristocrats in this article (click here). The dividend reports below … Read more
2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?
Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more
Nelson: The 16 Most Important Steps To Understand The Stock Market
A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more