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Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
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).
Aug 28, 2020
TikTok Up for Grabs
Image Shown: ByteDance may be forced to sell the US operations of TikTok, and there are plenty of potential suitors out there with deep pockets. On August 27, Walmart announced it was in discussions with Microsoft Corp about acquiring the US operations of popular short-video-oriented social firm TikTok from Beijing-based ByteDance. Given that Microsoft noted back on August 2 it was continuing discussions concerning a potential deal for TikTok’s US, Australian, New Zealand and Canadian operations, it is likely Walmart would be interested in acquiring an economic interest in those assets as well. Additionally, a consortium led by Oracle Corp has reportedly made a $20.0 billion bid for TikTok according to The Wrap, with $10.0 billion made up in cash and $10.0 billion of Oracle stock along with a provision that would see Oracle give ByteDance 50% of the annual profits from TikTok over a two-year period. Please note that none of this is for certain, though we are intrigued by the news. Oracle is reportedly joined by General Atlantic and Sequoia Capital, two venture capital firms that are also investors in ByteDance.
Aug 28, 2020
Dollar General Posts Another Stellar Earnings Report
Image Shown: Best Ideas Newsletter portfolio holding Dollar General Corporation has seen its stock price climb significantly higher year-to-date, as of this writing on August 27. On August 27, Dollar General Corp reported second quarter fiscal 2020 earnings (period ended July 31, 2020) that beat both consensus top- and bottom-line estimates. The retailer’s same-store sales increased by 18.8% year-over-year aided by a series of initiatives that we have covered in the past including DG Pickup (Dollar General had stepped up its digital investments in recent years, with DG Pickup offering customers a way to order via mobile device and pickup those goods in-store), DG Fresh (Dollar General is adding more consumer staples offerings to its stores, namely refrigerated and frozen foods), and by placing a greater emphasis on selling non-consumable products (which carry higher gross margins). Longer term, Dollar General wants to add more fresh produce to its stores.
Aug 27, 2020
Hats Off to Powell and Mnuchin!
"My hat goes off to Powell and Mnuchin. As you know, I used to be a big believer in (very) hands-off government policies when it comes to the free-market system, but we can no longer afford that today. There are too many investors that aren't paying attention to their investments and/or pursuing misguided correlation analysis. Many have noted, including Danielle DiMartino Booth, that "the Fed could be setting the US economy up for a harder fall down the road by flooding markets with cash and spurring investors to prop up firms that are not fit to survive." Almost completely lost today, however, is that the Fed and Treasury also propped up almost every investment firm tied to indexing and modern portfolio theory." -- Valuentum's President Brian Nelson, CFA
Aug 27, 2020
Earnings Brief: NTAP, URBN, HPE, SJM, MDT
Image Source: Valuentum. Pantry stuffing was prevalent during the second quarter, and mall-based retail is holding up better than some had expected. Cloud-based services companies continue to experience breakneck growth, and medical procedure volumes are picking up as we learn more and more about COVID-19.
Aug 27, 2020
Dick’s Sporting Goods Finds E-Commerce Success
Image Shown: Shares of Dick’s Sporting Goods Inc rallied by ~16% during normal trading hours on August 26 after reporting stellar same-store sales growth.  On August 26, Dick’s Sporting Goods reported second quarter fiscal 2020 earnings (period ended August 1, 2020) that beat consensus estimates on both the top- and bottom-lines. Driving this outperformance was Dick’s Sporting Goods’ 20.7% year-over-year increase in same-store sales as its e-commerce sales rose by 194%, which includes sales conducted through its curbside contactless pickup option. E-commerce sales represented ~30% of the sporting goods retailer’s total sales last fiscal quarter. Average ticket sizes and the number of transactions both grew last fiscal quarter according to management commentary included in the earnings press release. Shares of DKS shot up by almost 16% after the report was published during normal trading hours on August 26. As of this writing, shares of DKS are trading near the upper bound of our fair value estimate range (which sits at $56 per share). That means shares of Dick’s Sporting Goods appear fairly valued at the moment, and we like its strong e-commerce performance and improving outlook. After reinitiating its quarterly dividend program this past June, shares of DKS yield 2.3% on a forward-looking basis (with an annualized payout of $1.25 per share of its common stock). We will cover its financial strength and dividend policy in greater detail in this note.
Aug 27, 2020
Earnings Brief: BOX, CRM, WMT, TOL, HD/LOW
Image Source: Toll Brothers. Iron Oak at Alamo Creek, Danville, CA. Let's cover some trends that may emerge out of the COVID-19 pandemic, including accelerated e-commerce proliferation and its impact on brick-and-mortar giants, as well as an increased likelihood of suburban sprawl that may propel some names while leaving others behind.



The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports, articles and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. The sources of the data used on this website are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor and does not offer brokerage or investment banking services. Valuentum, its employees, and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.