Valuentum Exclusive Analysis for the Discerning Investor

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Apr 24, 2020

Dividend Increases/Decreases for the Week Ending April 24
Let's take a look at companies that raised/lowered their dividend this week.

Mar 11, 2020

Worst in Energy Not Over, Stay Away from Leveraged Enterprises, Seeds of Financial Crisis Sown?
Image Shown: The energy and banking markets continue to be experiencing pain. Since we removed the Energy Select Sector SPDR (XLE) and Financial Select Sector SPDR (XLF) from the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio, the XLE has fallen more than 50% and the XLF has fallen 13%, while the SPY has held up roughly 2%. We continue to believe staying away from energy and financials/banks will be a source of significant alpha.These are challenging times. The oil price swoon has complicated an already-dire situation with COVID-19. We’re seeing cracks in the credit markets, and the European banking system is far from healthy. The US banks may face knock-on impacts from energy loan defaults and hold significant counter-party risk from their European brethren, which have breached post-Lehman lows. We’re doubtful any fiscal stimulus will stave off this crisis, and it may just set up the markets for the next leg down, if Congress ends up in a stalemate. We will continue to keep our members informed on the state of global energy markets as more information becomes available, but we think avoiding energy and banks/financials will continue to be a source of alpha. We removed the XLE and XLF from the newsletter portfolios in August of last year. We’re reiterating our 2,350-2,750 target range on the S&P 500.

Feb 13, 2020

What is Risk?
Image Source: Mike Cohen. Let’s start by talking about what isn’t risk. Risk isn’t easily measured, and yet that is what the asset management industry and academia tend to serve up to the average and professional investor alike. You will see the standard deviation of a stock or portfolio, showing how much the value wiggles. You will see beta, which shows how much the value wiggles as compared to the benchmark’s own wiggles. You will see things like the Sharpe and Sortino ratios, which tackle further quantifiable ways to describe risk--and the list of equations goes on and on. Do you know what is a much more difficult question for an asset manager to answer? How much real risk is contained in your portfolio? I was going to say fundamental risk, but real risk is a broader category and what I am driving at in this piece. So, let’s get after it. What is real risk as it pertains to an individual investment or a portfolio?

Jan 31, 2020

Dividend Increases/Decreases for the Week Ending January 31
Let's take a look at companies that raised/lowered their dividend this week.

Jul 19, 2019

Dividend Increases/Decreases for the Week Ending July 19
Let's take a look at companies that raised/lowered their dividend this week.

Jul 18, 2019

Kinder Morgan Modestly Disappoints But Its Problems Are Transitory
Image Shown: Kinder Morgan Inc expects a lot of organic growth opportunities will be generated via surging domestic demand for natural gas and rising natural gas export capacity in the US. Image Source: Kinder Morgan Inc – IR Presentation. We remain optimistic on Kinder Morgan’s dividend growth opportunities, and our fair value estimate still stands at $23 per share.

Apr 19, 2019

Dividend Increases/Decreases for the Week Ending April 19
Let's take a look at companies that raised/lowered their dividend this week.

Feb 17, 2019

S&P Global: "Enterprise's shift on cash flow reflects 'metamorphosis' of US pipeline firms"
S&P Global: "While several major U.S. energy pipeline companies spent 2018 shedding cash-leaking habits and forging a more conventional financial structure as stocks languished, adopting reporting practices that are more accessible to the investing public could be a gradual process for the industry, if it takes flight at all."

Feb 11, 2019

MLPs Starting to Adopt Free Cash Flow?
Image shown: Since mid-June 2015, the price of an ETF tracking the midstream MLP energy space (AMLP) has fallen more than 40% while the S&P 500 (SPY) has rallied more than 30%. No changes to simulated newsletter portfolios.

Feb 6, 2019

Arista Networks' Overview and Holly Energy’s Dropdowns Dried Up
We often receive specific questions from members for research requests on stocks not within our coverage universe and specific questions regarding companies already within our coverage universe. Let’s take a look at one of each such situation in this article.