Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

Sep 3, 2020

Schlumberger and Liberty Oilfield Services Make a Deal
Image Shown: Schlumberger NV is combining its OneStim business with Liberty Oilfield Services Inc. The picture above is an overview of the combined company on a pro forma basis. Image Source: Liberty Oilfield Services Inc – Schlumberger to Contribute OneStim to Liberty IR Presentation. On September 1, Schlumberger and Liberty Oilfield Services announced that Schlumberger would combine its onshore hydraulic fracturing business in the US and Canada, OneStim, with Liberty Oilfield Services. That includes Schlumberger’s pressure pumping and pumpdown perforating businesses in the relevant regions, and its frac sand business in the Permian Basin (West Texas and Southeastern New Mexico). In return, Schlumberger is getting a 37% equity stake in Liberty Oilfield Services (on a pro forma basis) which primarily offers pressure pumping and other oilfield services to upstream companies operating in onshore US markets. The day the news broke, shares of LBRT were up 36% during normal trading hours while shares of SLB were down 1%, as investors clearly saw Liberty Oilfield Services as the big winner from this industry consolidation.

Sep 3, 2020

Apple Reportedly Launching 5G iPhone Soon
Image Shown: Shares of Best Ideas Newsletter and Dividend Growth Newsletter portfolio holding Apple Inc have continued to surge higher this year. The tech giant is supported by strong demand for its hardware offerings, the launch of new services, and growing demand for its existing services. We are intrigued by the upcoming launch of its first 5G-capable iPhone, which is reportedly due to be released this Fall. Very recently, Bloomberg reported that Apple is asking its suppliers to get ready to deliver at least 75 million 5G iPhones later this year, which may grow as high as 80 million. What makes these targets particularly noteworthy is that it appears Apple is expecting demand for its upcoming iPhones to either match or exceed that of the demand for its iPhones last year, indicating the ongoing coronavirus (‘COVID-19’) pandemic has not shaken Apple’s confidence in its near-term outlook. Additionally, this would represent Apple’s first 5G-capable iPhone if the reports are true, which represents a major potential near-term growth catalyst.

Sep 3, 2020

Update: Frequently Asked Questions About Valuentum Securities, Inc.
Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports and dividend 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. We address a number of questions from both subscribers and visitors to our site.

Sep 3, 2020

The Merits of Concentrated Portfolios
Image Source: QuoteInspector.com. To some degree, each investor has to pick their own preference. With widely-diversified index investing, firm-specific risk is largely eliminated as such investors are taking on only systematic risk. On the other hand, investors seeking portfolio concentration are taking on firm-specific risk, in addition to systematic risk. This could either help mitigate broader market movements or exacerbate them. I hope this was helpful, and may today's nearly all-green Best Ideas Newsletter portfolio brighten your spirits. Let us look to even better times ahead.

Sep 2, 2020

ALERT: Markets Now Fairly Valued
Image Source: Sam Valadi. Long-term investing is a great proposition. You have an incredible advantage over most professional investors that have to deliver on a quarterly or annual basis. The reason is due to something called time horizon arbitrage.

Sep 2, 2020

Our Thoughts on Rackspace and Zoom Video Communications
Image Source: Rackspace Technology Inc – Second Quarter of 2020 IR Earnings Presentation. The ongoing coronavirus (‘COVID-19’) pandemic has fundamentally disrupted daily activities for households all over the globe, which has changed the way individuals work and communicate with each other. Now many are working from home, doing schoolwork and attending virtual classes from home, and seeking to stay connected with friends and family while at home. Software-as-a-Service (‘SaaS’) companies that provide solutions to the problems created by COVID-19 are well-positioned to ride out the storm, aided by their asset-light and highly scalable business models.

Sep 1, 2020

Experience and Judgment
"Think of a DCF model like a baseball bat. It's not so much the bat, itself, that matters, but rather it's the hitter that uses the bat that matters. Two hitters can use the same bat and arrive at a completely different outcome. In my near-10 years working at Valuentum, this concept is the most important one I've sought to emphasize. The DCF model is a tool, much like the baseball bat is the instrument by which the slugger hits home runs. That same bat can lead to a triple crown or set the league record in strike outs." -- Valuentum's Brian Nelson, CFA

Sep 1, 2020

Valuentum Website Overview
Overview of the key features of www.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.

Aug 31, 2020

Berkshire Hathaway Is Finally Putting Its Enormous Cash Pile to Use
Image Shown: Shares of Berkshire Hathaway Inc Class B are recovering from the steep pandemic-induced fall as the company has started to put its enormous cash-pile to work. On August 31, Berkshire Hathaway announced it had  “acquired slightly more than 5% of the outstanding shares in five of the leading Japanese trading companies” and that the firm considered these to be “passive stakes.” Those positions were acquired over approximately the past year through purchases made on the Tokyo Stock Exchange. Here are the five companies in alphabetical order (by ticker): Itochu Corporation, Marubeni Corporation, Mitsui & Co. Ltd., Mitsubishi Corporation, and Sumitomo Corporation.

Aug 31, 2020

Alibaba Mirrors the Performance of Its Western Peers
Image Shown: Alibaba Group Holding Limited posted strong results for the fiscal quarter ended June 30, 2020, mirroring the performance of its large-cap tech peers based in Western countries (particularly the US). Image Source: Alibaba Group Holding Limited – June Quarter 2020 Earnings Presentation. At a time when US-China geopolitical tensions are rising and the Trump Administration is pushing the Chinese tech firm ByteDance to divest (at least) the US-based operations of TikTok, many Chinese tech firms are still thriving. The ongoing coronavirus (‘COVID-19’) pandemic has fundamentally altered daily life for most households around the world. Social distancing practices have aggressively driven up e-commerce demand along with demand for cloud computing offerings (as more employees work from home and as households stay indoors for significantly longer periods).