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Nvidia Beats Low Expectations and Shares are Rewarded Accordingly

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Image Source: Nvidia Corporation – IR Presentation By Callum Turcan Nvidia Corporation (NVDA), like the rest of the semiconductor industry, has been on a wild ride over the past few years. On the one hand, the industry has benefited from the cloud-computing build out and the rise of smartphones, along with the emergence of autonomous driving, the internet of things (“IoT”), machine learning, and artificial intelligence. On the other hand, semiconductors are now contending with headwinds from the bust in the cryptocurrency craze, the sharp slowdown in data center investments due in part to ongoing trade wars, and other factors like excess inventory. Expectations were very low for Nvidia heading into its second quarter FY2020 earnings, released August 15, which … Read more

In the News: Second-Quarter Earnings Season Marches On

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We like what we saw out of a few industrial names, including Honeywell, Danaher and Dover. We thought Taiwan Semi’s report was okay, and Philip Morris continues to navigate declining cigarette volumes. We include our thoughts on some of the mid-size banks. By Brian Nelson, CFA For those just catching up, please have a read of our introductory second-quarter earnings season piece here. We saw some nice reports from J&J (JNJ) and Abbott (ABT), and while we had some concerns about the core industrial economy in light of Fastenal’s (FAST) and CSX’s (CSX) reports, news from Honeywell (HON), Danaher (DHR), and Dover (DOV) suggest that industrial activity is more likely mixed than outright deteriorating. Honeywell’s second-quarter results, released July 18, … Read more

Nvidia Scraps Full-Year Guidance, Market Balks

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Image Source: Nvidia Corporation – IR Presentation By Callum Turcan Nvidia Corporation (NVDA) designs chips for data centers, PCs and laptops with a heavy focus on gaming performance, next-generation automobiles (such as autonomous vehicles), and other purposes. The company is built around two segments, GPUs (graphics processing units for visual, AI, and cloud computing uses) and Tegra Processors (integrates GPUs and CPUs, central processing units, into one chip for mobile devices, gaming systems, entertainment systems, autonomous vehicles, and other uses). Management breaks down the markets Nvidia is targeting into four categories; Gaming, Visual Performance, Datacenter, and Automotive. Due to its low payout ratio, Nvidia yields just 0.4% as of this writing, but we think the company could become a meaningful … Read more

New 10s! — Stock Report Updates — Triage During Market Volatility

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We have updated our 16-page equity and dividend reports for a number of high-profile companies in our coverage universe and have provided a table summarizing the new fair value estimates, Dividend Cushion ratios, and other key metrics following the updates for your convenience. By Valuentum Analysts We’ve been actively updating select reports through the course of this market swoon, and we have provided the table above for your convenience.  Guess what — Facebook (FB) and Google (GOOG, GOOGL) are now registering 10s on the Valuentum Buying Index again! These two companies are also the highest weighted equities in the simulated Best Ideas Newsletter portfolio. There’s a lot of “hair” on both names, given political and regulatory risks, and both may experience … 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

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

Dividend Growth Newsletter Portfolio Earnings Roundup

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Three simulated Dividend Growth Newsletter portfolio ideas reported second-quarter earnings July 26. Let’s take a look at the results. By Kris Rosemann Altria Tightens Bottom-Line Guidance Despite Double-Digit Smokeable Volume Declines Simulated newsletter portfolio idea Altria’s (MO) top line continues to contract alongside industry-wide volume declines, but its second quarter report, released July 26, revealed its domestic cigarettes market share also took a hit, falling 70 basis points from the year-ago period to 50.2%. Net revenue fell 5.4% as domestic cigarette shipment volume declined 10.8% on a year-over-year basis due to the aforementioned industry decline, trade inventory movements, and retail share losses. Adjusted operating companies income (OCI) in its smokeables segment fell 2.8% as volume declines were partially offset by … 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).

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