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Valuentum’s 3 Breakthroughs in the Field of Finance and More

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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

Can Vertex Pharmaceuticals Dominate the Race to Treat Cystic Fibrosis?

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Tickerized for holdings in the XLV and IBB. Cystic Fibrosis is a rare disease that afflicts an estimated seventy-five thousand patients worldwide. Vertex Pharmaceuticals is the first to market with a combination treatment to treat a portion of the overall patient population. Will Vertex win the race to bring forth a triple therapy to treat the vast majority of those afflicted? By Alexander J. Poulos Cystic fibrosis (CF) is a recessive genetic disorder. The patient that is afflicted will carry two copies of the cystic fibrosis conductance regulator protein (CFTR) gene. The CFTR gene allows the body to produce the CFTR protein, whose function is to remove chloride from the cells. Patients that have CF will suffer from a “thickening” … Read more

Sanofi: The First Victim in the Great Insulin Price War

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The steady growth expected from Diabetes products has come to an abrupt halt. Is Sanofi adequately prepared to replace the revenue loss of its top-selling product? By Alexander J. Poulos and Kris Rosemann The diabetes pandemic continues to expand at a rapid pace. Diabetes is a condition where the body is unable to regulate the amount of sugar found in the blood correctly, and it is differentiated into two distinct types. Type one diabetes is defined as a condition where the body does not produce any insulin, thus requiring regular supplementation to maintain proper regulation. The second and more common version is Type 2 diabetes where the body loses the ability to produce an adequate amount of insulin to regulate … Read more

Is There Value in DaVita?

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With healthcare the primary focus in Washington, let’s evaluate the investment case for DaVita. We discuss how potential changes can impact the economics of the dialysis market. By Alexander J Poulos The healthcare sector remains in focus with the renewed emphasis on repealing/replacing the Affordable Care Act. The uncertainty that has crept into the industry may offer an appealing entry into the industry for those currently on the sidelines. The write-up below discusses the prospects of DaVita Inc (DVA), one of the largest providers of dialysis care in the United States. The Inelastic Demand for Dialysis The dialysis market mirrors the use of insulin, the classic economics example of inelastic demand. The demand for dialysis remains unfazed irrespective of market … Read more

Dow 21,000+; Forward P/E on S&P 500 ~18!!!

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By Brian Nelson, CFA To say that the broader equity market is “extended” is an understatement. After testing the 20,000 mark on the Dow Jones Industrial Average (DIA), stocks have now plowed through 21,000 in such a fashion that can only be compared to the euphoric trading activity of 1999 when the index surged to 11,000 from 10,000 over roughly the same time frame. Who remembers the days of the dot-com bubble? The market is clearly off its rocker, but the market isn’t always on its rocker. Stock prices under and overshoot intrinsic value all of the time. It’s a part of the markets, as much as oxygen is necessary for human life. The markets overshot to the downside during … Read more

PBMs: Express Scripts and CVS’ Looming Victory?

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Image Source: Victor We’re expecting a big win at CVS in coming years, and it may come at the expense of Express Scripts. By Alexander J. Poulos With the recent addition of CVS Health (CVS) to the newsletter portfolios, we believe the sell off in the Pharmaceutical Benefit Managers (PBM) industry is overdone. We are intrigued by the free cash flow generated from a highly-predictable business model, and that the PBM’s negotiate contracts in advance, locking in a customer for an extended period, only adds to the attractiveness of their operations. Another PBM, but a pure play, is Express Scripts (ESRX). Let’s discuss the unique characteristics of Express Scripts along with notable risks, which prevented us from adding the name … Read more

Pharma, Biotech and How to Consider Investing In It

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The Valuentum analyst team digs deep into recent trends in big pharma and biotech from the lofty pricing of drugs to political and competitive pressures to ETF considerations and beyond. ~10 mins. If you cannot view the podcast below, please view the transcript below or select the link here. Tickerized for holdings in the XLV and IBB. Brian Nelson, CFA Gilead’s (GILD) hepatitis C regimen, almost a hundred thousand dollars. Vertex’s (VRTX) cystic fibrosis drug — hundreds of thousands of dollars per year. Have the drug companies lost their mind? This is Brian Nelson from Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos — and we are going to talk everything healthcare, biotech… Mr. … Read more

Video: An Overview of Our 16-page Stock Research Reports

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Understanding the Chartered Financial Analyst (CFA) Designation

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“Among the countless finance degrees around the world, the Chartered Financial Analyst qualification has become the gold standard.” – Financial Times, 13 August 2010 “[The] qualification is roughly equivalent to a specialized postgraduate finance degree, including a mixture of economics, ethics, law, and accountancy… Whereas there are tens of thousands of finance degrees available around the world, ranging from the excellent to the worthless, there is only one CFA, managed and examined by an American association of financial professionals, the CFA Institute.” – the Economist From the CFA Institute: “The Chartered Financial Analyst (CFA) charter is an investment credential that, for more than 60 years, has been the global standard for embodying the integrity, dedication, and advanced skills needed to … Read more

Dividend Increases/Decreases for the Week Ending June 10

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Below we provide a list of firms that raised/lowered their dividends during the week ending June 10. 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 Advanced Drainage Systems (WMS): now $0.06 per share quarterly dividend, was $0.05. Armanino Foods of Distinction (AMNF): now $0.02 per share quarterly dividend, was $0.019. C.R. Bard (BCR): now $0.26 per share quarterly dividend, was $0.24. FedEx (FDX): now $0.40 per share quarterly dividend, was $0.25. H&R Block (HRB): now $0.22 per share quarterly dividend, was $0.20. National Fuel Gas Company (NFG): now $0.405 per share … Read more