Valuentum Exclusive Analysis for the Discerning Investor

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Sep 8, 2024

Broadcom Misses with Guidance for Its Fiscal Fourth Quarter
Image: Broadcom’s shares fell after the company issued fiscal fourth quarter guidance that came up short with respect to the consensus estimate. Looking to the fourth quarter of fiscal 2024, Broadcom expects revenue of approximately $14 billion, and fourth-quarter adjusted EBITDA of approximately 64% of projected revenue, or $8.96 billion. Though the firm’s revenue guidance for the fourth quarter wasn’t poor, it did come in lower than the $14.13 billion that the Street was expecting, and shares were punished as a result. We’re not reading much into one quarterly report, however, and we maintain that trends in artificial intelligence are prolific.

Aug 9, 2024

Paper: Value and Momentum Within Stocks, Too
Abstract: This paper strives to advance the field of finance in four ways: 1) it extends the theory of the “The Arithmetic of Active Management” to the investor level; 2) it addresses certain data problems of factor-based methods, namely with respect to value and book-to-market ratios, while introducing price-to-fair-value ratios in a factor-based approach; 3) it may lay the foundation for academic literature regarding the Valuentum, the value-timing, and ultra-momentum factors; and 4) it walks through the potential relative outperformance that may be harvested at the intersection of relevant, unique and compensated factors within individual stocks.

Jun 13, 2024

Broadcom Issues Strong Guidance, Announces Stock Split
Image: Broadcom’s shares have done quite well in the past couple of years. We liked its fiscal second quarter results and outlook. Broadcom’s fiscal second quarter results were fantastic, and its levels of profitability are a sight to see. We like the momentum behind its operations, its forward-looking guidance, as well as its free cash flow generating capacity. Shares yield ~1.4% at the time of this writing.

Jun 10, 2024

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.

Mar 31, 2024

Broadcom a Key Beneficiary of AI Investment
Broadcom recently reported better than expected first-quarter results for fiscal 2024. During the quarter, the company generated cash flow from operations of $4.8 billion and spent just $122 million in capital equipment, translating into tremendous free cash flow generation, well in excess of the $2.4 billion it paid in dividends in the quarter. We see Broadcom as a key beneficiary of AI investment and are keeping a close eye on the firm.

Mar 28, 2024

Micron Issues Strong Outlook, Points to Multi-Year Opportunity in AI
Image Source: Micron. Micron operates in the ultra-cyclical semiconductor industry, and while the next few quarters may be robust, we’re cautious on the sustainability of the momentum and pricing health beyond the next few quarters, despite management’s optimism in fiscal 2025. Free cash flow has also been negative during the first six months of its fiscal year, and its net debt position precludes it from being a net-cash-rich, free-cash-flow generating powerhouse like so many other companies in the technology space. All things considered, we liked Micron’s quarterly report and outlook, but it’s not enough for us to pull the trigger on the idea for the Best Ideas Newsletter portfolio.

Feb 25, 2024

We Remain Bullish; Is This 1995 – The Beginning of a Huge Stock Market Run?
Image: Large cap growth stocks have trounced the performance of the S&P 500, REITs, and bonds since the beginning of 2023. We expect continued outperformance in this area of the market. We’re now roughly four years past the depths of the COVID-19 meltdown, where equities collapsed in February and March of 2020. As the markets began to recover through 2020, our long-term conviction in equities only grew stronger. We think the biggest risk for long-term investors remains staying out of the market on the basis of what could be considered stretched valuation multiples. As we outlined heavily in the book Value Trap, valuation multiples hardly tell the complete story about a company and often omit key long-term earnings growth, cash flow dynamics, and balance sheet health considerations. We remain bullish on equities for the long haul, and we think the next couple years will be incredibly strong. Our best ideas can be found in the Best Ideas Newsletter portfolio, Dividend Growth Newsletter portfolio, High Yield Dividend Newsletter portfolio, ESG Newsletter portfolio, and via the Exclusive publication as well as options idea generation.

Feb 21, 2024

Market Darling Nvidia Delivers in Fiscal Fourth Quarter
Image: Nvidia has been a market darling, and the company did not disappoint in its fourth-quarter fiscal 2024 report. We like what we’re seeing at Nvidia these days, and what it implies for big cap tech and large cap growth, and we expect ongoing strength at the company. Competition from AMD and others is looming, but Nvidia continues to capture the lion’s share of AI investment at this time, and that will likely continue for some time yet. Speculative investors have made a bundle on Nvidia during the past 12-18 months, but we’ve been quite satisfied with the performance of Best Ideas Newsletter portfolio holding, the Technology Select Sector SPDR, which includes Nvidia as one of its top three holdings. Nvidia’s shares are showing strength after the quarterly report.

Feb 17, 2024

Latest Report Updates
Check out the latest report updates on the website.

Feb 9, 2024

Earnings Roundup: PEP, DIS, ARM, PM
Image Source: Arm Holdings. Pepsi issued an outlook for 2024 that came in lower than what the Street was expecting, but we like the diversification of having a strong brand entity such as Pepsi in the Best Ideas Newsletter portfolio. Disney is working hard to get back on track, and cost-cutting efforts have significantly helped its free cash flow generation. The firm is buying back stock, too, and recently upped its semi-annual dividend payout by 50%. Arm Holdings plc surprised the market in a big way, sending shares almost 50% higher following the report. The company's lucrative royalty business model and attractive exposure to artificial intelligence has investors extremely excited. Philip Morris is targeting strong organic revenue growth in 2024 thanks in part to Zyn growth, and we like the strong foundation that its free cash flow provides in supporting its dividend.