TSLA

Panera Eaten Up; SeaDrill’s End, Cisco’s Dividend Hike and Much More

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Let’s go around the horn with recent investment-related news. Let’s say goodbye to Panera, talk about SeaDrill’s infamous demise, follow up on the Coach dividend saga, address Cisco’s payout strength and attractive valuation, update readers on Medtronic’s portfolio optimization initiatives, and try to reason through Tesla’s recent price surge.   By Kris Rosemann and Brian Nelson, CFA Goodbye Panera I think most of us were surprised a bit Wednesday morning, April 5, to see Panera Bread (PNRA) taken private by JAB Holding Company for $315 per share in cash. Shares of Panera started the year just above the $200 price tag, so the buyout is a nice payoff for investors that have been holding strong in the fast-casual concept. JAB … Read more

Who’s Driving Who: The Future of the Automakers

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Image Source: HimmelrichPR Let’s dig into some recent developments surrounding the auto market, and how technological and strategic innovation could reshape the future of the space. By Kris Rosemann There have been a number of interesting developments related to the auto space recently, from Theresa May and the UK government triggering Brexit to pressure on the US used vehicle and auto lending markets to the seemingly inevitable proliferation of autonomous vehicles. Such progressions should not come as a surprise; in fact, we outlined some potential concerns with the long-term health of the US auto market in July 2016, “Sharp Curves Ahead for US Auto Market?” The cyclical US auto market may be plateauing after multiple years of tremendous sales levels … Read more

Is Clean Energy Just Burning Cash?

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Image Source: Chuck Coker Clean or renewable energy sources will undoubtedly be a part of how we generate power in the future, but how investible is the space? The answer is largely dependent on your risk tolerance. Key Takeaways: The success of the solar industry at this point in time is dependent on public policy, specifically investment tax credits, which allow participants to compete with traditional energy sources. The wind power industry is more developed than the solar industry, though many of the largest players in the industry are large utility holding companies. There are a wide range of ideas ancillary to the renewable energy movement in the areas of emissions reduction, power storage, and energy efficiency. By Kris Rosemann … Read more

Major Automakers: Fundamental Uncertainty But Potential Investment Opportunity…Soon

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Source: YCharts The fates of major US automakers General Motors and Ford remain as tethered as ever, but we remain in awe at how punitive “this” frothy market is on their respective valuations. For one, GM is trading at 5 times forward adjusted earnings and boasts a near-5% dividend yield! By Kris Rosemann The market has been very kind to some, but perhaps overly punitive to others. While dividend-rich consumer staples giants continue to garner the favor of investors, “A Kleenex? Consumer Staples Trading At Nosebleed Levels (August 2016),” the ‘Detroit Three’ — Ford (F), General Motors (GM), and Chrysler (FCAU) — have all trailed the S&P 500 Index (SPY) return thus far in 2016 due to a variety of … Read more

Part III: Nelson’s Evaluation of Berkshire’s 2015 Annual Report

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<< Go back to Part I << Go back to Part II By Brian Nelson, CFA It’s always a wonder to open up on the Berkshire Hathaway (BRK.A, BRK.B) annual report for a large variety of different reasons, but every time I do I can’t help but ponder yesteryear through the table on page 2, “Berkshire’s Performance vs. the S&P 500.” I think I have a unique knack for imagining what might have been if today’s standards would have been applied to Berkshire in the 1970s, perhaps in some ways how many baseball fans may think about whether the legends of the past would have put up the type of numbers that they did if presented with today’s dynamics. For … Read more

Apple Will Go Lower… And It Will Be “Forced” Into Acquisitions

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By Brian Nelson, CFA We have a few regrets for not “lightening up” more on the position in Apple (AAPL) in the newsletter portfolios during the past few weeks, “Looking to Trim Apple…” and while our lack of action may cost the newsletter portfolios a few basis points in the near term, we’re not too concerned. For one, in this “type” of market, we want to stick with quality, and Apple fits that bill quite well, particularly with the cushion that its balance sheet provides. The iPhone giant’s equity price may go lower as some sell the “headlines” around its fiscal 2016 performance, but the company’s financial health puts it in a class by itself, in our view. The Journal … Read more

The 20 Something’s Stock Portfolio

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A version of this article appeared on our website March 31, 2015. <Our best ideas at any time are included in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.> The “20 Something’s Stock Portfolio” is the first in a series of articles where we get to the core of what many brand new investors want to do when they are first introduced to the stock market: find exciting companies that they are familiar with that will help compound their wealth over time. Other portfolios that we will share in this series include “The Ultra High Income Portfolio,” “The Economic Castle Portfolio,” “The Dividend Cushion Portfolio,” and “The Intelligent ETF Investor’s Portfolio,” among others. The series of portfolios will … Read more

US Auto Sales Continue Breakneck Pace in September

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The recent market volatility seemed to have had little impact on auto sales for the month of September. Amid a wild ride in the stock market that began near the conclusion of August, the US auto industry posted its best month in September since July 2005 in terms of seasonally adjusted annual rate (SAAR) of sales, which came in at 18.17 million. Consensus estimates were not nearly has high as the actual figure, as sales were initially expected to be closer to 17.6 million. A number of factors helped drive the strong sales numbers across the automotive industry. Consumer confidence remains high, as does disposable income; unemployment is at its lowest point since April 2008, and gas prices have fallen. … Read more

The Dow Crashes 531 Points

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Missed Vauentum’s pre-crash commentary? See here. Memories of the Financial Crisis are still vivid in our mind. The framed front pages of the Wall Street Journal reporting the demise of Lehman, AIG and WaMu on those fateful days in 2008 drape the walls of the Valuentum office as a stark reminder of the fragility of the financial and capital markets. We’re not alone. Many investors remember seeing their savings cut to pieces at the depth of Financial Crisis. The Dow Jones Industrial Average (DIA), in collapsing 531 points Friday, has captured those same individuals’ attention…again. They haven’t forgotten the pain of the years of the credit crunch when they wondered whether they’d ever be able to retire during the dreadful … Read more

Earnings Brings Out Volatility of Speculative Entities

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Tesla Falls on Lowered Delivery Guidance Tesla’s (TSLA) shares fell following the release of its second-quarter results August 5, despite beating consensus estimates on revenue and earnings per share. The firm reported non-GAAP revenue growing 40% from the year-ago period to $1.2 billion, and a non-GAAP loss of $61 million or $0.48 per share. The company was significantly cash flow negative through the first half of 2015 due in large part to capital expenditures for capacity expansion and tooling associated with the new Model X and the construction of the Tesla Energy Gigafactory. Management claims its capital spending is more efficient than ever in terms of capital spend per unit of incremental capacity, which will be necessary to get the firm … Read more