Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

Oct 28, 2011

Visa Provides Investors with Underrated Growth Prospects
Due to a better than expected outlook for 2012, and a favorable ruling by the Fed regarding the Durbin Amendment, we think Visa is now worth $126 per share, roughly a 25% premium to where the stock currently trades.

Sep 1, 2011

Dick's Sporting Goods Appears Slightly Overvalued
Dick's shares appear pricey. We've initiated coverage at a fair value of $30 per share.

Aug 23, 2011

We Outline Our Bullish Case for Ford
We like Ford, and the prospects for the realization of pent up demand for autos could drive the shares meaningfully higher.

Aug 2, 2011

AMR’s Equity Still Practically Worthless, Merger Will Not Save Airline
We think AMR's shares have further room to fall and think a merger is extremely unlikely.

Jul 11, 2011

Looking for a Pullback to Pick Up Johnson & Johnson's Shares
We think J&J's shares are fully-valued at this time, but we'd be looking to pick some up if the firm offered a dividend yield of 4%.

Jun 29, 2011

Big 5 Sporting Goods Looks Extremely Undervalued, But Proceed With Caution
We outline our views on Big 5 Sporting Goods.

Jun 18, 2011

A Serious Blow to Boeing is Looming
Boeing's troubles in the narrowbody market are mounting, and the firm appears to be losing favor with core customers. We discuss why Southwest and Ryanair are likely to defect in the years ahead. "As competition in the narrowbody market heats up before the Paris Air Show next week, Boeing appears to be losing favor with two of its best customers, Southwest and Ryanair. For those unfamiliar with Southwest's and Ryanair's fleets, they are all-Boeing 737 airplanes, and recent actions by these two carriers give us pause, especially as Boeing drags its feet on deciding what to do next with its workhorse 737..."

Oct 23, 2023

Kinder Morgan Now Covers Cash Dividends with Traditional Free Cash Flow
On October 18, Kinder Morgan reported third-quarter results that came in lower than expectations, but we’ve taken note of the company’s improved free cash flow generation that now runs in excess of its cash dividends paid, a huge change from a decade ago, where capital spending and cash dividends paid far outweighed its operating cash flow capacity. The company’s dividend stands at $1.13 per share on an annualized basis, and Kinder Morgan now has an forward estimated dividend yield of ~6.7%, which is quite attractive. Shares are trading meaningfully below our estimate of their intrinsic value, too, and we’re warming up to the company’s financials. Its net debt position likely precludes it from being added to any simulated newsletter portfolio at this time, however. Our $21 per-share fair value estimate remains unchanged.

Oct 3, 2023

We Like NextEra Energy’s ESG Focus But Capital Market Conditions Now Showing Cracks
Image Source: NextEra Energy. NextEra Energy operates a complex business structure, and the firm’s equity is facing pressure on news that its subsidiary NextEra Energy Partners is cutting its distribution per unit growth rate to the range of 5%-8% annually through 2026, which is materially below its prior expectations of growth in the 12%-15%. Since most partnerships are owned primarily for their distribution yields, the revision has sent units of NextEra Energy Partners tumbling, hurting its partner along the way. The news, while not tragic, wasn't very welcoming, and reading between the lines, it appears that we’re starting to see some cracks in the capital markets, as most partnerships are debt-heavy, relying on continuous, affordable access to the capital markets to fund and grow their operations (distributions), which isn’t guaranteed.

Aug 17, 2023

3 High Dividend Yielders for Consideration
Image: Entities with large net cash positions and substantial free cash flow generation have outperformed not only the broader stock market, but also key high yield areas, including REITs, mortgage REITs and master limited partnerships during the past 10 years. Source: The respective ETF sponsors. The skills to successfully invest for long-term capital gains or long-term dividend growth are much different than those required for generating high yield dividend income. Income investing is a much different proposition. However, the skills do center on a similar equity evaluation process, but one that requires an acknowledgement and heightened awareness of considerably greater downside risks. Income investing, or high yield dividend income investing, should at times be considered among the riskiest forms of investing, as many high dividend-yielding securities tend to trade closer to the characteristics of junk-rated bonds than they do most net cash rich and free cash flow generating powerhouses that we like so much in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.