XLV

Steris Ties the Knot with Cantel Medical

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Image Shown: Cantel Medical Corp is getting bought out by Steris PLC through a cash-and-stock deal. The image up above highlights Cantel Medical’s promising long-term growth outlook, though its performance in 2020 was subdued due to headwinds created by the coronavirus (‘COVID-19’) pandemic. In our view, Steris was attracted to Cantel Medical’s improving outlook (the latter started to stage an impressive rebound in the second half of calendar year 2020) and the ability for the combined firm to generate substantial synergies. Image Source: Cantel Medical Corp – December 2020 IR Presentation By Callum Turcan On December 2, we highlighted (link here) the ongoing turnaround at Cantel Medical Corp (CMD) and noted that “we (thought) Cantel Medical is one for the … Read more

Walgreens Sells European-Focused Wholesale Pharmaceutical Distribution Business to AmerisourceBergen

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Image Shown: Walgreens Boots Alliance Inc is undergoing a major transformation. Part of that strategy involves divesting its European wholesale pharmaceutical distribution business, Alliance Healthcare, to its strategic partner AmerisourceBergen Corporation. Image Source: Walgreens Boots Alliance Inc – Fourth Quarter and Full Year Fiscal 2020 IR Earnings Presentation By Callum Turcan On January 6, Walgreens Boots Alliance Inc (WBA) announced it had reached a deal with AmerisourceBergen Corporation (ABC) to sell the “the majority of” its European-focused wholesale pharmaceutical distribution business, Alliance Healthcare, for about $6.5 billion ($6.275 billion in cash along with 2 million shares of ABC). Please note that Walgreens already owns a sizable stake in AmerisourceBergen as the former owned ~28% of the latter’s outstanding shares as … Read more

UnitedHealth Remains on Our Radar for Dividend Growth Newsletter Portfolio

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Image: On a price-only basis, from the beginning of 2008, UnitedHealth’s shares have advanced ~600%, while the S&P 500 has increased ~150%. The measurement period covers both the Obama and Trump administrations. By Brian Nelson, CFA UnitedHealth Group (UNH) is a name that we don’t dedicate a lot of resources to, as we tend to prefer diversified exposure to the healthcare arena in both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio via the Healthcare Select Sector SPDR (XLV)–UnitedHealth Group is a ~8% weighting in the ETF at the time of this writing. Nonetheless, this Dow Jones Industrial Average (DIA) component has been under material accumulation of late based on its pricing action. Year-to-date, on a price-only basis, … Read more

Best Ideas Newsletter Portfolio Holdings Are Surging!

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Image: The holdings in the Best Ideas Newsletter during the trading session November 4. We continue to pound the table on our best ideas. By Brian Nelson, CFA If you were like me, you stayed up as long as you could last night watching the U.S. election coverage before it became too difficult to keep your eyes open. When I went to sleep, it seemed as though Donald Trump would be re-elected. The only state that appeared to flip to the Democrats from the 2016 election was Arizona, meaning Trump would still retain greater than the 270 electoral votes required to gain re-election. Well, that was last night, and this is today. As more and more votes came in last … Read more

Johnson & Johnson Once Again Raises Guidance

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Image Shown: An overview of Johnson & Johnson’s financial performance during the third quarter of fiscal 2020. Image Source: Johnson & Johnson – Third Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On October 13, Johnson & Johnson (JNJ) reported third quarter fiscal 2020 earnings (period ended September 27, 2020) that beat consensus non-GAAP EPS estimates and consensus GAAP revenue estimates, though its GAAP EPS fell short of consensus estimates likely due to turbulence created by the ongoing coronavirus (‘COVID-19’) pandemic. Johnson & Johnson’s GAAP revenues were up 2% year-over-year last fiscal quarter while its GAAP gross margin stayed broadly flat at 66.9%. A sharp reduction in other expenses resulted in Johnson & Johnson’s GAAP net income more … Read more

Great Day in the Markets!

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Image: The Invesco QQQ Trust, an exchange-traded fund based on the NASDAQ 100 index, had a great day during the trading session October 12, as it leads all major indexes on the year.  — By Brian Nelson, CFA — First of all, a warm welcome to our new members. We recently posted a website overview video on our website here, and please be sure to view our stock report walk-through . At Valuentum, we’re financial publishers, so please be sure to read through how many members use our services here. — The trading session October 12 was a sight to see. The Dow Jones Industrial Average advanced 0.88%, the S&P 500 jumped 1.64%, while the NASDAQ powered ahead an incredible 2.56%. As many of our … Read more

Update on Johnson & Johnson

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Image Shown: An overview of Johnson & Johnson’s expectations for fiscal 2021 provided during its second quarter of fiscal 2020 earnings report. We continue to like shares of Johnson & Johnson as a top-weighted holding in our Dividend Growth Newsletter portfolio. Image Source: Johnson & Johnson – Second Quarter of Fiscal 2020 Earnings IR Presentation By Callum Turcan Johnson & Johnson (JNJ) is a top-weighted holding in our Dividend Growth Newsletter portfolio, and we continue to be big fans of the healthcare and consumer staples giant. The company recently published some key updates that we wanted to draw our members’ attention towards. Before we begin, please note that Johnson & Johnson is near the front of the pack when it … Read more

Dividend Growth Selection in a Low Yield Environment

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Dear members: — John Burr Williams’ historical work The Theory of Investment Value, published in 1938, set the foundation for the widely known discounting mechanism inherent within equity valuation frameworks today. His text is often credited with the origins of the dividend discount model. Though Value Trap: Theory of Universal Valuation identifies enterprise valuation, or the discounted cash flow model (the free cash flow to the firm model, to be precise) as the causal driver of values and prices, the concepts are very similar. Stock values and prices are a function of future expectations. — Today, with highly accommodative Fed and Treasury policy, interest rates are ultra-low, and even yields on junk-rated debt have plummeted. For example, Ball Corp (BLL), a junk-rated credit (jargon … Read more

The Merits of Concentrated Portfolios

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My dear friends: — Many thanks for your continued interest in our work.  — Though uncertainty in the efficacy of any vaccine for coronavirus disease (“COVID-19”) remains, the New York Times reported today that the CDC “has notified public health officials in all 50 states and five large cities to prepare to distribute a coronavirus vaccine to health care workers and other high-risk groups as soon as late October or early November,” just weeks from now.  — While expected by the optimists, we continue to view this as good news. The sheer amount of resources, both public and private, seeking a vaccine for COVID-19 leads me to believe we’ll have one sooner than later, in time to set the economy up for a stronger-than-expected … Read more

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!