TRIP

Yahoo! Weighing Its Options

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The IRS has thrown a monkey wrench in Yahoo!’s (YHOO) plans for a tax-free spin-off of its 384 million shares of Alibaba (BABA), worth nearly $40 billion. In late January, Yahoo! announced a plan for the spin-off of its remaining position in Alibaba into a newly-formed investment company, to be called Aabaco Holdings. Yahoo had planned for the stock of the new company to be distributed pro rata to existing Yahoo shareholders. After the completion of the proposed transaction, Aabaco Holdings would either directly or indirectly own the 384 million shares of Alibaba formerly owned by Yahoo, along with a 100% ownership interest in Aabaco Small Business, which would be a newly-formed entity that owns Yahoo Small Business. Yahoo Small … Read more

The Priceline Group Soars!!!

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It’s difficult to be patient with new ideas, and we understand. But the efficacy of the Valuentum Buying Index in picking winners continues to be a big head-turner. The methodology’s batting average—or the number of ideas that “work out”—is among the best of any systematic process that we’ve seen (if not the best), and we point to the logic behind its conceptual underpinnings as to the reasons why. The Valuentum Buying Index, which combines valuation and technical/momentum indicators, hits at the heart of what makes a good equity investment idea. Companies that we think are undervalued and ones in which the market also believes are undervalued—i.e. stocks whose shares are moving higher—should, by definition, be top performers. After all, the … Read more

Priceline Posts Fantastic Third-Quarter Results

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Online travel service and hotel reservations firm Priceline (click ticker for report: ) reported fantastic third-quarter results Thursday that showed solid gross travel bookings expansion and better-than-expected performance in Europe. Our fair value estimate remains unchanged. The company’s revenue advanced 17.4% from the year-ago period thanks to solid performance in its international operations, where sales grew 42% on a local currency basis. Third-quarter travel bookings increased 25.2% and 33.8% on a local currency basis from the same period a year ago. Image Source: Priceline Priceline’s operating income jumped 22.6% and GAAP earnings per share increased over 27% during the period. On a non-GAAP basis, earnings per share increased roughly 25% from last year’s quarter, to $12.40, better than consensus expectations of … Read more

How to Think About Corporate Tax Reform

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Update: Frequently Asked Questions About Valuentum Securities, Inc.

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What is Valuentum Securities? Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports and dividend reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. How do I subscribe to Valuentum’s investment research services? 1)    Click the following link: signup-page. 2)    Select your membership plan. 3)    Enter your contact details. 4)    Click ‘Sign Up.’ 5)    Complete your purchase. 6)   Your payment profile may be recurring, so please check … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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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

ICYMI — Video: Will Hasty Policy Facilitate the Next Leg Down, or Do We Have It Coming Anyway?

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President of Investment Research and award-winning author of Value Trap: Theory of Universal Valuation Brian Nelson explains how US policymakers are stuck between a rock and a hard place, and how the market may be factoring in too high of a probability of a return to normalcy before 2021. This and more in the latest video report. Summary Make sure you review Value Trap on Amazon. Do so here. We think those that bought equities near the bottom of this swoon may be looking to take profits at present levels. The market is currently reflecting an 80%-85% probability of a return to normalcy before 2021, which we believe is too high at this time. Our main concern is that government … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

PayPal and Visa Remain Attractive Long-Term Ideas

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Image Source: Visa Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan The payment processing and payment solutions space is attractive. Companies operating in this industry have asset-light business models with relatively modest capital expenditure requirements to maintain a given level of revenues, making free cash flows easier to come by. Additionally, the industry’s growth outlook is incredibly bright and supported by secular tailwinds as the world continues to shift away from cash and towards other payment options (card, mobile apps, QR codes, online payment platforms). Our two favorite companies in this space are PayPal Holdings Inc (PYPL) and Visa Inc (V), and we include both as ideas in the Best Ideas Newsletter portfolio. Online spending … Read more

2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?

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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