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Chinese Stocks Getting Hammered

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Image shown: A confluence of factors are driving Chinese stocks lower, not the least of which is heightened regulatory concerns. By Brian Nelson, CFA The collapse in Chinese equities (FXI) (MCHI) during the trading session July 26 is a reminder (again) why you should consider combining momentum with *enterprise valuation* in stocks, as in the Valuentum process. It’s not enough for you to think a stock is undervalued or cheap. The market must agree with you, too. A falling stock price says the market disagrees. Our favorite ideas for consideration are always in the newsletter portfolios, whether the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, or High Yield Dividend Newsletter portfolio. We do not have any direct exposure to … Read more

FTC Attacks Facebook, Win-Win Scenario for Investors

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Image Shown: Facebook Inc has a large digital advertising business with global reach, but it does not have a monopoly on digital advertising or social media by any means. Image Source: Facebook Inc – Third Quarter of 2020 IR Earnings Presentation Summary Facebook is being sued by the FTC for allegedly engaging in monopolistic activities via its acquisition program. It’s important to note that the government is not seizing Facebook’s assets and that Facebook investors own the future free cash flow stream of the entire entity under any and every scenario–whether Facebook is retained in current form or whether it is broken into different parts through a potential IPO/spin-off of its Instagram and WhatsApp properties.  Under a status quo scenario, … Read more

Alert — Chinese Stocks Hit the Skids

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Image Source: Michael Vadon We don’t think US and China are anywhere close to any sort of meaningful trade agreement, regardless of what you hear from the White House. The latest move in this high-stakes trade war by the US may be to de-list Chinese stocks. This actually happening seems surreal given the implications on U.S. investors, but given weakness in US-listed Chinese names, the market is factoring in some probability of this occurring. By Brian Nelson, CFA On September 27, news hit the wires that indicated the White House is evaluating ways to curtail US investors’ “portfolio flows into China,” and that may include de-listing Chinese stocks on U.S. exchanges. Although the development comes amid the view that discussions … Read more

What You Should Know About MMORPGs

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The Valuentum analyst team talks about the Chinese gaming industry and the financials of Tencent (TCEHY) and Netease (NTES), in particular. Both generate strong free cash flow and have solid balance sheets, but there are myriad risks to consider, too. ~5 mins. Podcast no longer available. Transcript as follows. Chris Araos: Welcome to Valuentum’s podcast. This is Christopher Araos, and joining us today is Brian Nelson and Kris Rosemann. Today, we’re going to talk about the MMORPG landscape in China. Brian? Brian Nelson, CFA: Thanks for that Chris. I think just to give a little bit of background MMORPG stands for massively multiplayer online role-playing (PC-client) games. Wow, that’s a mouthful. These are very, very popular games across the globe … Read more

Hit or Miss in the Video Gaming Entertainment Industry

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The Valuentum analyst team talks the latest and greatest trends in the video game entertainment industry from tried-and-true titles to the financial positions of the largest players to retail big box and beyond. ~9 mins. Kris Rosemann: Welcome to Valuentum’s podcast. I’m Kris Rosemann and joining us today is Mr. Chris Araos. Chris, you have a strong background as an observer of trends in the video game entertainment industry. How would you say the world of gaming is shaping up these days? Chris Araos: Well, Kris — a lot has changed in video gaming in just the past five years thanks to the emergence of more-advanced mobile phones, which are just great devices to play games on. Unlike PCs or … Read more

Dividend Increases/Decreases for the Week of March 15

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Below we provide a list of firms that raised their dividends during the week ending March 15. 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                          Aboitiz Power Corporation (ABZPY): now $0.5667 per share annual dividend, was $0.4579. Acer (ACEYY): now NT$1.60 per share dividend, was NT$1.50. AG Mortgage Investment Trust (MITT): now $0.18 per share quarterly dividend, was $0.05. Applied Materials (AMAT): now $0.40 per share quarterly dividend, was $0.32. Boston Pizza Royalties Income Fund (BPZZF): now CAD 0.113 per share monthly dividend, was CAD 0.107. Brambles (BXBLY): now … Read more

ICYMI: Time to Consider Buying Chinese Equities? Not Exactly.

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This article was originally published August 26, 2021. Image Shown: Shares of Alibaba Group have plummeted over the past year in the wake of Beijing’s crackdown on China’s domestic tech and fintech titans. By Callum Turcan Many would argue that the key event that kicked off Beijing’s ongoing crackdown on its domestic tech giants started back in October 2020 when the once domestically revered entrepreneur Jack Ma, the founder of e-commerce, fintech, payment solutions, and cloud computing giant Alibaba Group (BABA), gave a speech critical of Chinese regulators. A WSJ article published August 20, Jack Ma’s Costliest Business Lesson: China Has Only One Leader, covered the situation in great detail. Mr. Ma noted at the time that he viewed Beijing’s … Read more

Valuentum Weekly: Yields on New Series I Savings Bonds Have Soared!

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The Valuentum Weekly is a brand-new weekly market commentary from Valuentum Securities, released each weekend in digital form. The Valuentum Weekly offers members a weekly synopsis of the markets and major events. It will be straight and to-the-point. Our goal is to deliver to you the latest information and insights. We welcome your feedback on how we can make the Valuentum Weekly as useful and as relevant for you as ever! — —– — Markets  — The Dow Jones, S&P 500 and NASDAQ futures are all indicated up Sunday night (March 13), but that may not mean much when trading kicks off tomorrow. The start to 2022 has been one of the worst stretches during the past decade, but broader … Read more