Valuentum Exclusive Analysis for the Discerning Investor

Merck Shows Impressive Margin Expansion
Image Source: Merck & Co Inc -- IR Presentation. Merck is improving its financials and we like that, but we still aren’t interested in shares after the run up during the past year and a half. The pharmaceutical giant’s net debt load is manageable given its strong free cash flows, but dividend growth will require share buybacks to be pared back first in order to make room for payout growth. It will take some time until we get an idea of how well Merck’s recent acquisitions pan out.

Aug 27, 2019

Elanco Buys Bayer’s Animal Health Unit, Gaining Scale and Greater Exposure to the “Humanization of Pets” Trend
On August 20, Elanco Animal Health Inc agreed to acquire Bayer AG’s animal health unit for $7.6 billion (at the time the deal was announced) through a cash and stock deal. This is a transformative deal for Elanco and one that will create a real competitor to Zoetis' and Merck’s animal health units. For Bayer, the company can now pivot to segments where it has stronger competitive advantages while also raising cash to cover potential Roundup-related legal liabilities (which could be enormous). We will be monitoring the space going forward but are staying firmly on the sidelines for now.

Jun 26, 2019

Another Pharmaceutical Giant Is Born
Image Source: AbbVie Inc – IR Presentation. The combination of AbbVie and Allergan seems to have been born out of the need to do something, anything, considering how dependent AbbVie is on Humira and Allergan is on Botox. We find the transaction interesting as it ties into our view that Big Pharma will continue getting bigger and bigger while the field gets smaller, but this doesn’t change on view on either Allergan or AbbVie. We aren’t considering shares of either company at this time.

Jan 3, 2019

Brace for More Volatility
Image shown: The S&P 500 ETF (SPY) since August of last year. The markets have broken through key support levels, and now support has become resistance. Volatility remains heightened since the low-vol ETN blew up in February.This article is the introduction to both the Dividend Growth Newsletter and High Yield Dividend Newsletter, both of which will be released today due to the holiday January 1.

Dec 31, 2018

Valuentum Stock Screeners
Brian Nelson provides members with an update on Valuentum's stock screeners and the significant number of forward-looking data we provide. This article was sent to members via email December 29.

Dec 20, 2018

Market Mayhem -- Alerts for Members
Dear members -- we released a number of emails today. Please read and let us know if you have any questions. We're here for you.

Sep 5, 2018

There Is Milk At The Store
"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." -- Winston Churchill

Aug 23, 2018

Pfizer: Lots of Moving Parts in a Generally-Inspiring Second Quarter
Image Source: Pfizer. We came away generally impressed with the progress at Pfizer during the second quarter as the company begins to replace its current patent protected line-up with next-generation treatments. Pfizer continues to gain political favor with its decision to forgo price hikes on its product line-up while announcing a re-organization of the business structure.

Aug 6, 2018

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution
The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones.

Aug 1, 2018

Johnson & Johnson: Headline Risk But Business Solid
We remain big fans of the steady hand displayed by the venerable Johnson & Johnson as the pharmaceutical bellwether continues to perform admirably. During its second-quarter results, we came away impressed with the continued strength in the Oncology division, which masks the deceleration in growth in Cardiovascular Disease. There continues to be headline risk with respect to talcum powder litigation, but J&J’s underlying business remains solid, in our view.

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