Valuentum Exclusive Analysis for the Discerning Investor

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Oct 28, 2019

High Yield Dividend Newsletter Portfolio Holdings AT&T and Philip Morris International Continue to Shine
Image Shown: AT&T continues to surge higher this year as shares of T converge towards their intrinsic value, a process supported by recent activist investor activity directed towards the company. If you may wish to add the High Yield Dividend Newsletter to your membership, please click here.We continue to like the resurgence in AT&T's shares of late. The company is rapidly converging to our $40 per share fair value estimate, and as the company divests assets and pursues deleveraging, its dividend growth profile is enhanced. Shares already yield an enticing 5.3%, too. Philip Morris has rallied considerably since it broke deal talks with Altria, and we believe the company has a relatively lower business risk profile than Altria. Both Philip Morris and Altria have Dividend Cushion ratios below the 1.25x threshold, or GOOD threshold, but given more positive overall trends at Philip Morris, we prefer the company over Altria at this time. Shares of Philip Morris yield a lofty 5.7% at the time of this writing.

Oct 28, 2019

Our Reports on Stocks in the Commercial Services Industry
Image Source: Zach Seward. We've dropped coverage of stocks in the Commercial Services industry.

Oct 27, 2019

BREAKING: General Motors and the UAW Reach a Deal, Ending the Strike
Image Shown: Shares of General Motors had come under fire over concerns regarding the extended UAW strike over the past several weeks, but with the strike now over, shares of GM may begin to converge back towards their intrinsic value. For General Motors, the company was a bigger winner than at first glance. While the strike reportedly will cost the company north of $2.0 billion on a pre-tax basis, General Motors was successful at getting several of its underutilized factories closed. Americans want SUVs, crossovers, and pickup trucks, not passenger cars, so maintaining factories set up to meet demand that isn’t there just doesn’t make sense on an economic basis. We see this deal as being a win-win and part of General Motors’ ability to continue improving its cost structure by removing underutilized assets from its operations while keeping in mind the company often needs approval from the union in order to do so. The pay increases are reasonable, and given that underutilized factories are shutting down, we think General Motors’ cost structure will keep getting better over the coming quarters and years ahead.

Oct 27, 2019

Economic Commentary – Politics, the WeWork Debacle, and How We Use the Valuentum Buying Index in the Newsletter Portfolios
In our latest Economic Commentary, the Valuentum team continues its discussion on politics and the markets and the implications of a potential WeWork failure on the commercial real estate and construction markets. We’ll also address a very important question: Why are there lower Valuentum Buying Index ratings in the newsletter portfolios at times? The answer is rather straightforward and a good thing! Let’s get started.

Oct 27, 2019

Our Reports on Stocks in the Financial Tech Services Industry
Image Source: frankieleon. We've optimized our technology coverage.

Oct 25, 2019

Amazon Contends with Rising Operating Expenses and Shrinking Gross Margins
Image Shown: Shares of Amazon Inc have stumbled so far in 2019 as the headwinds from rising tariffs, largely a product of the US-China trade war, combined with a competitive cloud computing landscape put downward pressure on its profitability levels. Amazon reported third quarter 2019 earnings after the market close on Thursday October 24 that underwhelmed investor expectations and saw shares plummet after-hours. However, shares of AMZN recovered somewhat throughout the trading session on Friday October 25. We don’t include Amazon in our Best Ideas Newsletter portfolio due in part to its high levels of operating leverage. Small changes in one’s valuation assumptions generally cause large swings in the intrinsic value estimates of a company like Amazon. We like Amazon’s long-term free cash flow generating potential, and our fair value estimate stands at $2,000 per share, but we are still staying away from the company for now. Amazon would have to be heavily discounted relative to the low end of our fair value estimate range (which stands at $1,500 per share as of this writing) before we could get interested in the name as a potential newsletter portfolio addition.

Oct 25, 2019

We've Dropped Coverage of the Aerospace Supply Chain
Image Source: Kevin. We've dropped coverage of the Aerospace Suppliers industry.

Oct 25, 2019

Portfolio Holdings Intel and Visa Hit It Out of the Park
Image Shown: Shares of Intel Corporation leapt higher on Friday October 25 as the market digested its solid earnings report and guidance for this quarter. We continue to really like Intel in our Dividend Growth Newsletter portfolio and Best Ideas Newsletter portfolio, and Visa in our Best Ideas Newsletter portfolio. The share price action seen in shares of INTC and V on Friday October 25 seem to indicate the market really appreciated each company’s latest earnings report, with shares of both companies marching higher as of this writing.

Oct 25, 2019

Our Reports on Stocks in the Prime Aerospace & Defense Industry
Image Source: Robert Sullivan. We've optimized our industrials coverage.

Oct 25, 2019

We've Dropped Coverage of the Business Services Industry
Image Source: Franz Conde. We've dropped coverage of the Business Services industry.