Valuentum Exclusive Analysis for the Discerning Investor

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Jan 4, 2024

4 Very Good Reasons Why We Don’t Like Dividends of Banking Stocks
Image: Bank Run in Michigan, USA, February 1933. Source: Public Domain. It’s sometimes easy to lose sight of the fragility of a banking firm’s business model. Let’s examine the reasons why we don’t like banking firms’ dividends. Reason #1: A Bank Run Is Always Possible. Reason #2: Others Have Tried to Invest in Bank Dividends and Have Failed. Reason #3: Cash Flow Is Not Meaningful at Banks. Reason #4: There Are Plenty of Other Options. Let's dig in.

Jun 26, 2023

CFA Institute Blog: "Hide-'Til-Maturity" Accounting
CFA Institute Blog: "The Silicon Valley Bank (SVB) collapse recalls the tussle over the accounting for financial instruments after the global financial crisis (GFC) in 2009, particularly the debate about whether some financial instruments should be carried at amortized cost (held-to-maturity, HTM) rather than at fair value (available-for-sale, AFS), or what is referred to as the “mixed measurement model.”" -- Sandy Peters, CPA, CFA

Nov 28, 2022

Deere’s Incredible Pricing Power Shines Through in Fiscal Fourth Quarter
Image: Deere put up excellent fiscal fourth-quarter results for the period ending October 30, 2022. The company's pricing power is phenomenal. Image Source: Deere. Deere & Company put up excellent fiscal fourth quarter results November 23, and the highlight of the quarter was the firm’s tremendous pricing power. Its outlook for fiscal 2023 was solid, too, and we expect considerable operating income expansion on the back of strong double-digit top-line growth as supply chain issues fall to the wayside in the coming quarters as economic conditions normalize. Deere has a sizable net debt position and traditional free cash flow faced pressure on a year-over-year basis during fiscal 2022, but the company may be one of the best ways to combat inflation through equities. Management also expects operating cash flow to bounce back to the range of $9-$9.5 billion in fiscal 2023 from $4.7 billion in the recently completed fiscal 2022. For us, however, Deere isn’t a great fit for the simulated newsletter portfolios given its pricey stock and comparatively small dividend yield of ~1%, but its outlook bodes well for the agricultural supply chain for fiscal 2023. The high end of our fair value estimate for Deere still resides below its current price of $440 per share, meaning investors are paying up to own Deere at the moment.

Nov 22, 2013

Dividend Increases/Decreases for the Week Ending November 22
Let's take a look at dividend increases/decreases for the week ending November 22.

Sep 12, 2013

The Mortgage Refinancing Boom Could Be Ending
The bull market in mortgage refinancing activity appears to be over, but that doesn’t mean it will materially damage the economy.

Sep 4, 2013

Why We Don’t Like Dividends of Banking Firms: 4 Very Good Reasons
It’s sometimes easy to lose sight of the fragility of a banking firm’s business model. Let’s examine the reasons why we don’t like banking firms’ dividends. Reason #1: A Bank Run Is Always Possible. Reason #2: Our Competitors Have Tried to Invest in Bank Dividends and Have Failed Miserably. Reason #3: Cash Flow Is Not Meaningful at Banks. Reason #4: There Are Plenty of Other Options.

Aug 30, 2013

Firms Raising Their Dividends in the Week Ending August 30
Let's take a look at some dividend increases that happened during the week.

May 25, 2013

Dividend Increases for the Week Ending May 24
We've identified a number of firms that raised their dividends in the past week.

Nov 29, 2012

More Special Dividends
Another day, another flood of special dividends.