VRSN

Our Reports on Stocks in the Software Security Industry

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Image Source: Martin McKeay Structure of the Software (security) Industry Participants in the software security industry focus on protecting important information wherever it resides—whether in servers, computers, mobile devices, or in the cloud. The space is intensely competitive, and some companies may offer their technology for free, engage in aggressive marketing, or pursue competitive partnerships. Firms also face indirect competition from application/operating system providers that may embed security solutions/functions in their own products. Participants must continuously develop new and enhanced services to meet changing customer demands. We’re neutral on the group. We’ve optimized our technology coverage universe. Software security firms can now be found here.

Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds

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Image: President of Investment Research Brian Nelson, CFA By Brian Nelson, CFA A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception. Though the book focuses more on the life and times of founder Jim Simons and dedicated only a page or two to the fall of Long-Term Capital Management (LTCM), another quant fund that went belly-up during the late 1990s, it was nonetheless a thoroughly interesting and enjoyable read. But why I am bringing up one of the most successful quant … Read more

As Expected, Broadcom’s Organic Revenues Didn’t Grow in Fiscal 2019

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Image Source: Broadcom Inc – November 2019 IR Presentation By Callum Turcan On December 12, Broadcom Inc (AVGO) reported fourth quarter earnings for its fiscal 2019 (period ended November 3, 2019). While GAAP revenues for the full fiscal year were up 8% year-over-year, hitting $22.6 billion, please note that includes the uplift from Broadcom acquiring CA Technologies. Shares of AVGO initially traded down 2%-3% on December 13, as investors digested the firm’s guidance for fiscal 2020. As of this writing, shares of AVGO yield 3.4%. Overview of Recent Events Management expects the company’s revenues in fiscal 2020 will come in at ~$25.0 billion (give or take $0.5 billion in either direction) while Broadcom’s adjusted EBITDA is forecasted at ~$13.75 billion … Read more

Intel’s Resilient Free Cash Flows and Improving Outlook

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Image Shown: Shares of Intel Corporation have resumed their upward climb after stumbling during the middle of 2019. We continue to like the name in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. By Callum Turcan Intel Corp (INTC) is another one of our favorite companies and is included in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. After coming under fire during the middle of 2019, INTC is back on a nice upward trajectory. The top end of our fair value range estimate sits at $61 per share of INTC, indicating there’s plenty of room for Intel to run higher. Shares of INTC yield 2.2% as of this writing, and we view the company’s dividend … Read more

Intel Still One of Our Favorite Ideas

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Image Source: Intel Corporation – August 2019 IR Presentation By Callum Turcan A holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, shares of Intel Corporation (INTC) have been on a strong upward tear since August. We continue to like the company as it appears shares of Intel are converging towards the top end of our fair value estimate range ($61 per share), with INTC trading at roughly $58.50 per share as of this writing. Looking ahead, Intel’s solid 2.1x Dividend Cushion ratio provides support for a quality dividend growth story (we rate Intel’s Divided Growth trajectory as EXCELLENT), and shares of Intel yield ~2.2% as of this writing. Image Shown: Shares of Intel appear to be … Read more

Portfolio Holdings Intel and Visa Hit It Out of the Park

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Image Shown: Shares of Intel Corporation leapt higher on Friday October 25 as the market digested its solid earnings report and guidance for this quarter. By Callum Turcan Intel One of our favorite Dividend Growth Newsletter and Best Ideas Newsletter portfolios holdings, Intel Corporation (INTC), posted third quarter fiscal 2019 earnings (period ended September 28) on October 24 that handily beat consensus top and bottom line estimates. Revenue in the third quarter on a GAAP basis came in at $19.2 billion, flat year-over-year, which management noted was $1.2 billion higher than guidance issued out in July. This outperformance was driven by Intel’s ‘data-centric’ offerings, with sales up 6% year-over-year, as Intel Xeon processors for data centers sold well. Additionally, Intel … Read more

ICYMI: Interview with Valuentum’s President Brian M. Nelson, CFA

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Catch up with Valuentum’s President Brian M. Nelson, CFA in a recent interview with dividend growth investor Arne Magnus Lorentzen Ulland of the blog stockles. By Brian Nelson, CFA Recently, I was interviewed by Arne Magnus Lorentzen Ulland of the blog stockles. Arne is a dividend growth investor like many of you, and I sincerely hope you enjoy the interview he put together. I’m very grateful for his interest. His questions were fantastic. We discuss why and how I incorporate independence and integrity into the service at Valuentum. We go into detail regarding why Valuentum views stocks the way it does, and how Valuentum combines enterprise valuation and the information contained in prices in its stock-selection process. I discuss the pitfalls … Read more

Semiconductors Broadcom and Cree Push Forward in an Uncertain Environment

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Image Source: Broadcom Inc – IR Presentation By Callum Turcan Broadcom (AVGO) posted third quarter earnings for its fiscal 2019 on September 12. The semiconductor and enterprise software giant reported GAAP revenues of $5.5 billion (up 9% year-over-year) and non-GAAP diluted EPS of $5.16 (up 4% year-over-year). The initial reaction from Wall Street was pessimistic on September 13 but shares of AVGO climbed later in the trading session to recover some of those initial losses. Reiterating FY2019 Outlook, FY2020 Outlook Uncertain Right off the bat, one thing we think is very important is that Broadcom reaffirmed revenue guidance for FY2019 calling for $22.5 billion in net sales ($17.5 billion from semiconductor solutions and $5.0 billion from infrastructure software sales). However, … Read more

Markets Swooning, Expect Extreme Volatility, Finger on Put-Option Trigger

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Image shown: We notified members December 26 that we had  moved  the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to a “fully invested” position, from a 30% and 20% cash “weighting” at the high end of the range, respectively.  — No change to simulated newsletter portfolios…at this time.  — Hi everyone, — Hope you’re navigating these tumultuous markets well.   — If you recall, during the holiday season last year, we had moved the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to “fully invested.” See image above (point of the arrow). Because many members were traveling and out of the office, not all were able to read the notification until a week or two after. They were … Read more

ATTN: Advisors and Planners — Disruption Is Looming

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“With the commoditization of investment advice and intense competition from robos and other more cost-efficient solutions, growth-minded advisors want to create bespoke experiences for clients.” — WealthManagement.com By Brian Nelson, CFA Hi Valuentum members, colleagues and friends, Valuentum has a large subscriber base and is one of the most successful paid subscription financial information websites launched this decade. Over the past eight years or so, individuals, financial advisors and money managers from all over the world have subscribed to our services. We pride ourselves on independence and transparency, and we’re a champion of the investor. Today, I’d like to talk directly to our financial advisor, financial planner, and professional money-manager members. You probably already heard the news yesterday: Charles Schwab, which handles … Read more