TGT

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

Hasbro Shares Jump Despite Transient Challenges

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Image Source: William Warby Simulated Dividend Growth Newsletter idea Hasbro turned in another lackluster quarterly report, but its second-quarter results were better than expected as the company continues to work through a variety of what it believes are transient issues. By Kris Rosemann Hasbro (HAS) continues to face obstacles in the form of the liquidation of major customer Toys ‘R’ Us in the US and other key markets and a rapidly evolving European retail landscape, but management continues to expect to return to growth in 2019 as it adapts to the changing operating environment in Europe and fills the consumer demand void created by the departure of Toys ‘R’ Us, “Toys ‘R’ Us Liquidation News Transient to Toy Makers.” We … Read more

Dividend Increases/Decreases for the Week Ending June 15

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Below we provide a list of firms that raised their dividends during the week ending June 15. 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 Canadian Energy Services & Technology (CESDF): now CAD 0.005 per share monthly dividend, was CAD 0.0025. Carolina Financial (CARO): now $0.06 per share quarterly dividend, was $0.05. Chesapeake Utilities (CPK): now $0.37 per share quarterly dividend, was $0.325. El Paso Electric (EE): now $0.36 per share quarterly dividend, was $0.335. Ennis (EBF): now $0.225 per share quarterly dividend, was $0.20. Exantas Capital (XAN): now $0.10 per … 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).

Generic Drug Deflation Continues to Hamper Cardinal Health and AmerisourceBergen

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A severe case of rampant generic drug deflation continues to hamper the share prices of Cardinal Health and AmerisourceBergen. We are monitoring the drug deflation numbers posted by the drug wholesalers as a key gauge of the investment merits of the group. By Alexander J. Poulos Key Takeaways Our interest in the drug-distribution industry centers on the group’s highly-predictive revenue model and the strong competitive positions of many underlying participants, emanating from their difficult-to-replicate distribution networks. The drug distribution industry is currently an oligopoly with McKesson, Cardinal Health and AmerisourceBergen controlling over 90% of the business. Generic drug price deflation continues to have a noticeable impact on the drug distribution industry as witnessed by the poor performance during the past … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

JD.com Set to Take on Amazon Head On

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Image source: JD.com fourth quarter presentation Chinese e-commerce giant JD.com has grown at a tremendous rate in recent years, and it is expected to continue taking advantage of a ripe opportunity in its home nation. However, management has more grandiose plans for its burgeoning e-commerce platform as it expects to make its US debut before the end of 2018. By Kris Rosemann When you think of the Chinese Internet space, probably Alibaba (BABA), Tencent (TCEHY) and Baidu (BIDU) are among the first to come to mind, but there is another giant in the Chinese Internet space. You may not be aware of this, but ranked by revenue, JD.com (JD) is one of China’s largest e-commerce companies. Through its website, www.jd.com, … Read more

General Mills’ Dividend Is Now of Questionable Health

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General Mills is stuck between a rock and a hard place, and the market is finally noticing. Its best dividend growth years have been behind it, but its recent dealings have put it in a rather precarious position heading into the next recession, the timing of which is the only uncertainty. The company has never been a consideration for inclusion in the simulated Dividend Growth Newsletter portfolio. By Brian Nelson, CFA On March 21, consumer staple General Mills (GIS) reported better-than-expected fiscal third-quarter results that showed reported net sales advancing 2% and operating profit increasing 9%, both measures over the comparable period last year. Though the top and bottom-line numbers appeared to be solid (adjusted diluted earnings per share leapt … Read more

Market Overreacts to Facebook News

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Image Source: Christopher The headline news seems concerning, but we’re taking a long-term perspective with Facebook. We doubt the news will meaningfully impact the trajectory of growth of its long-term free cash flow, and we’re not reading too much into events that seem heavily-influenced by the overheated political environment. By Brian Nelson, CFA Investors are overreacting and selling shares of Facebook (FB) March 19 because they are worried about implications of a UK probe and a state investigation into the practices of Cambridge Analytica, a privately-held data mining and analysis company, and whether the way Cambridge Analytica acquired and applied data from users of Facebook was legal. The New York Times first broke the story when the paper published a … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.