VRTX

Health Care Sector Remains Hot

by

Image Shown: The Health Care Select Sector SPDR ETF, a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, has been on an upward tear over the past several years. Strong macro tailwinds combined with the ability for industries within the health care sector to generate meaningful shareholder value have been key to supporting strong capital appreciation of equities operating in the area of late. By Callum Turcan The Health Care Select Sector SPDR ETF (XLV) is a top holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. We like the exposure and diversification to health care equities that XLV provides. XLV yields ~1.5% as of this writing. State Street Corp (STT) acts as … Read more

Biotech and Pharma Roundup

by

Image Source: e-Magine Art Some big news in the world of biotech and pharmaceuticals has come out this week, starting Monday October 21, that we want to get out in front of our members. In alphabetical order by ticker symbol: BIIB, BMY, MRK, NVS. By Callum Turcan Biogen Inc (BIIB) reported third quarter 2019 earnings on Tuesday October 22 that easily beat both top and bottom line estimates. That was partially due to strong sales at its SPINRAZA offering, which is used to treat spinal muscular atrophy. Shares of BIIB rocketed higher during the trading session as investors priced in the upside that Biogen’s Aducanumab treatment could generate, with the company announcing that it was going to ask the US … Read more

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

by

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

Elanco Buys Bayer’s Animal Health Unit, Gaining Scale and Greater Exposure to the Humanization of Pets” Trend”

by

Image Shown: Shares of Elanco Animal Health Inc (ELAN) sold off after the company announced on August 20 it was acquiring Bayer AG’s (BAYRY) animal health unit through a cash and deal stock deal worth $7.6 billion at the time the deal was announced. By Callum Turcan On August 20, Elanco Animal Health Inc (ELAN) agreed to acquire Bayer AG’s (BAYRY) animal health unit for $7.6 billion (at the time the deal was announced) through a cash and stock deal. That includes $5.3 billion in cash and $2.3 billion in stock, keeping in mind shares of ELAN initially shifted lower after the news. Bayer plans to exit its stake in Elanco over time as management seeks to rebuild the company’s … Read more

Mylan Surges, Why Fair Value Estimates Matter

by

Image Source: Mylan NV – IR Presentation By Callum Turcan On July 29, Mylan NV (MYL) agreed to merge with Pfizer Inc’s (PFE) Upjohn unit to form a much larger and more diversified entity in the pharmaceutical industry, selling such products as Mylan’s EpiPen and Pfizer’s Viagra. Shares of MYL jumped by a double-digit percentage on the news, and we aren’t surprised given how Mylan has traded well below our $31 per share fair value estimate for some time now. What Mylan needed was a catalyst to get the market to take notice (of its estimated future free cash flows), and Pfizer seems to have offered it one by renewing investor interest in the name. Pro forma for this transaction, … Read more

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

by

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

by

“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

In the News: Dividend Growth Still on Hold at General Mills After Strong Quarter, Avoiding FedEx and BMW After Warnings on Bottom-Line Weakness, and a Biogen as a Prime Example of Risks to Avoid in Biotech

by

General Mills raised bottom-line and free cash flow conversion expectations for fiscal 2019, but we’re not interested in shares as it continues to prioritize deleveraging over dividend growth in a slow growth environment. International corporations continue to weigh the impact of slowing macroeconomic activity and global trade tensions, as evidenced by FedEx and BMW slashing bottom-line expectations, and shares of Biogen have been rocked by news that it terminated two late-stage studies of a key Alzheimer’s treatment. By Kris Rosemann General Mills Turns in Positive Organic Sales Growth and Operating Margin Expansion Food products giant General Mills (GIS) turned in better-than-expected results in its fiscal 2019 third quarter report, released March 20, as organic sales growth advanced 1% on a … Read more

DG Newsletter Alert, Markets on a Roll! New Highs Coming?

by

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. It doesn’t look like the timing could have been much better.  Changes to Dividend Growth Newsletter portfolio Removing Novartis (NVS) -3.5%-5.5% Adding Health Care Select Sector SPDR Fund (XLV) +3.5%-5.5% By Brian Nelson, CFA The back half of 2018 was among the most exciting in Valuentum’s history. For one, we might have made one of our best “market-direction” calls since inception in practically calling the near-term bottom December 26. In hindsight, it’s clear the market had overreacted, but at the time, going to “fully … Read more

Valuentum’s Stock and Data Screens and Screeners

by

Let’s go over where to find Valuentum’s stock and data screens and screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, and our data comes straight from our enterprise discounted cash flow models that we use to derive a company’s fair value estimate. By The Valuentum Team In late 2017, we made the decision to transition to providing an updated Excel download each week to members in order to allow them to facilitate any combination of screening criteria they want with respect to our vast amounts of data, whether it be the Valuentum Buying Index, the Dividend Cushion ratio or other. What we’ve found out the past 15 months or so … Read more