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  • Why Boeing Is The Strongest It's Ever Been
    May. 15, 2014 BA 3 Comments

    Summary

    • Boeing has come a long way since the depths of the Global Financial Crisis.
    • We like the aerospace supplier quite a bit, but its Valuentum Buying Index score isn't very attractive.
    • We tend to prefer opportunities with high Valuentum Buying Index ratings, but Boeing may be the strongest it's been in history.
  • Why Oracle Is Worth A Look
    May. 14, 2014 ORCL 3 Comments

    Summary

    • Oracle is often overlooked by investors seeking big cap tech or big cap software exposure, given Apple's and Microsoft's respective investment opportunities and dividends.
    • Though Oracle doesn't score the highest rating on the Valuentum Buying Index, its score of 7 is noteworthy and certainly better than average. Shares yield a modest 1%, however.
    • We think investors should take a look at Oracle, and at the very least, keep it on their watch list. The firm has underappreciated and significant dividend growth capacity.
  • Domino's Economic Castle Doesn't Mean Shares Aren't Overpriced
    May. 13, 2014 DPZ 2 Comments

    Summary

    • Domino's franchise business model has allowed it to carve out a nice Economic Castle.
    • But despite its strong economic returns, the market has caught on to its fantastic ability to deliver value to shareholders (ROIC less WACC).
    • The company's shares are overpriced, and we continue to prefer opportunities in the Best Ideas portfolio.
  • Evaluating United Technologies' Intrinsic Value
    May. 13, 2014 UTX Comment!

    Summary

    • We think the discounted cash-flow model is most applicable to global cyclical industrials like United Technologies.
    • United Technologies posts a Valuentum Buying Index score of 7, reflecting our "fairly valued" DCF assessment of the firm, its attractive relative valuation versus peers, and bullish technicals.
    • Though we like the diversified industrial giant, we prefer firms in the Best Ideas portfolio.
  • Why We're Still Huge Fans Of Microsoft
    May. 12, 2014 MSFT 9 Comments

    Summary

    • Microsoft is one of our favorite ideas in our coverage universe.
    • The company has a pristine balance sheet, a strong and growing dividend, and valuation upside.
    • Microsoft is a holding in both the Best Ideas portfolio and Dividend Growth portfolio.
  • 5 Very Popular But Very Unattractive Dividend Growth Firms
    May. 12, 2014 KALU, KLAC, MO 26 Comments

    Summary

    • The benefits of dividend growth investing over the long haul have been widely-documented.
    • Cash-flow-based dividend analysis such as the Valuentum Dividend Cushion helps investors take into consideration the strength of a firm's balance sheet, which is a key source of funding.
    • Let's walk through 5 very popular dividend growth ideas that may not be as attractive as you think. Our best dividend growth ideas are included in the Dividend Growth portfolio.
  • Why Salesforce.com's Future Growth Is Already Factored In
    May. 11, 2014 CRM 3 Comments

    Summary

    • Salesforce.com's top line is growing nicely, but its valuation largely reflects this.
    • The firm registers a 3 on the Valuentum Buying Index. We prefer higher rated firms.
    • In the valuation context, other big-cap software giants such as Microsoft look like a steal compared to Salesforce.com.
  • Why 3D Systems Isn't Worth The Risk
    May. 11, 2014 DDD 22 Comments

    Summary

    • Investors in 3D Systems are taking on a huge amount of risk.
    • We expect Hewlett-Packard and other large entities with substantial financial resources to eventually start a value-destructive pricing war in the 3D printing industry.
    • 3D Systems registers a 5 on the Valuentum Buying Index. We prefer ideas in the Best Ideas portfolio.
  • Why Einhorn Is Right About Micron
    May. 9, 2014 MU 11 Comments

    Summary

    • We think hedge fund manager David Einhorn is right about upside in Micron's shares.
    • Micron Technology posts a Valuentum Buying Index score of 9, reflecting our "undervalued" DCF assessment of the firm, its attractive relative valuation versus peers, and very bullish technicals.
    • The firm is one of the highest ranked companies in our expansive coverage universe.
  • Why Hasbro Still Has Material Upside
    May. 9, 2014 HAS 1 Comment

    Summary

    • Though physical toy demand continues to face pressure, Hasbro's performance has been resilient.
    • The company is one of our favorite dividend growth ideas, having paid dividends since 1977. It has a strong Valuentum Dividend Cushion score.
    • Hasbro registers a 6 on the Valuentum Buying Index, a solid rating.
  • Evaluating Tencent's Cash-Flow-Derived Intrinsic Value
    May. 8, 2014 TCEHY 3 Comments

    Summary

    • We think an intrinsic value estimate is a vital step in any investment-decision process, regardless of the business model.
    • Tencent's future growth opportunities are tremendous, and its ValueCreation rating is solid.
    • We value shares just north of $70 each, implying modest upside.
  • Why Adobe Tops Our Business Quality Matrix
    May. 7, 2014 ADBE Comment!

    Summary

    • Adobe is a fantastic company that throws off gobs of free cash flow.
    • The firm continues to gain significant traction with respect to Creative Cloud subscriptions. We love this recurring, subscription-based model.
    • Though we like Adobe, we prefer companies that register a higher rating on the Valuentum Buying Index. Adobe registers a 3.
  • Why 3M Is Ridiculously Overpriced
    May. 6, 2014 MMM 39 Comments

    Summary

    • There is little doubt in our team's view that 3M's shares are overpriced.
    • 3M posts a Valuentum Buying Index score of 4, reflecting our "overvalued" DCF assessment of the firm, its unattractive relative valuation versus peers, and bullish technicals.
    • We think there are better ideas in the Best Ideas portfolio and Dividend Growth portfolio.
  • Why There's Much To Like About Honeywell
    May. 6, 2014 HON Comment!

    Summary

    • We think Honeywell is fundamentally well-positioned.
    • Boeing has significant flexibility to fill delivery slots in the years ahead, and the aerospace giant's nice position will have spillover benefits to suppliers, including Honeywell.
    • Though we like Honeywell, we prefer ideas in the Best Ideas portfolio and Dividend Growth portfolio.
  • Why Papa John's Shares Aren't Cheap
    May. 5, 2014 PZZA Comment!

    Summary

    • Papa John's has a long way to go in order for its fundamentals to catch up to its market pricing. There is a valuation disconnect.
    • Papa John's posts a Valuentum Buying Index score of 4, reflecting our "overvalued" DCF assessment of the firm, its unattractive relative valuation versus peers, and bullish technicals.
    • We prefer firms that register a 9 or 10 rating on the Valuentum Buying Index.
  • Why We're Passing On Seagate
    May. 5, 2014 STX 12 Comments

    Summary

    • The markets Seagate competes in are intensely competitive.
    • Seagate has cut its dividend in the past, and investors should be aware of its controversial track record.
    • We generally prefer more stable firms that operate in a better industry environment and that have Valuentum Buying Index ratings of a 9 or 10.
  • Medtronic: One Of The Best Dividend Growth Ideas
    May. 3, 2014 MDT 24 Comments

    Summary

    • We think Medtronic may be one of the best dividend growth ideas for the next two decades.
    • The company's emerging market business should be a strong source of revenue and earnings growth.
    • Medtronic's Valuentum Dividend Cushion score is north of 2, implying significant safety and expansion potential.
  • Why Union Pacific Is Our Favorite Railroad Idea
    May. 2, 2014 UNP 13 Comments

    Summary

    • We like the railroad industry thanks to its significant barriers to entry.
    • Though each railroad has many things going for it, we like Union Pacific the best.
    • We expect the company to outperform in this market. The company resides in the Best Ideas portfolio.
  • Why Panera Isn't Yet Underpriced
    Apr. 30, 2014 PNRA 7 Comments

    Summary

    • The market is clearly spooked about Panera.
    • We think taking a long-term view into its fundamentals and applying the Valuentum style is the correct way of looking at the firm.
    • Panera registers a 3 on the Valuentum Buying Index. We prefer firms that score a 9 or 10 and/or are included in the Best Ideas portfolio.
  • Why Apple Is Headed Past $700 Per Share
    Apr. 30, 2014 AAPL 61 Comments

    Summary

    • The Valuentum Buying Index has done a great job identifying entry and exit points in Apple's stock.
    • We consider Apple one of our best ideas, as well as one of our best dividend growth ideas.
    • Our fair value for the iPhone-maker suggests the firm is headed past $700 per share.
  • Starbucks: The Apple Of Restaurants
    Apr. 29, 2014 SBUX 3 Comments

    Summary

    • On a fundamental level, we like Starbucks quite a bit.
    • The company can be considered the 'Apple of restaurants.'.
    • The firm registers a 3 on the Valuentum Buying Index. We prefer firms with higher ratings and those included in the Best Ideas portfolio.
  • Why Yum Brands May Need To Reinvent Itself On Many Fronts
    Apr. 29, 2014 YUM 1 Comment

    Summary

    • Yum Brands may need to reinvent itself -- both in the US and China.
    • Yum Brands registers a 7 on the Valuentum Buying Index.
    • We prefer firms with slightly higher Valuentum Buying Index ratings -- 9 or 10 on the scale.
  • GE Seeks To Make Big Deal; We Still Like Shares
    Apr. 28, 2014 GE 8 Comments

    Summary

    • GE is rumored to be on the hunt for some French assets.
    • We're highlighting its near-pristine rating on the Valuentum Buying Index.
    • The company remains one of our favorite ideas.
  • Why McDonald's Is Not A Top Idea
    Apr. 28, 2014 MCD 16 Comments

    Summary

    • McDonald's registers a 7 on the Valuentum Buying Index rating system.
    • The company is engaged in a war on two fronts: breakfast and coffee. It's going to be difficult for McDonald's to keep up with competitors in both areas.
    • The company's dividend yield is nice, but we prefer other dividend growth ideas in the restaurant industry.
  • Why Buffalo Wild Wings May Have Further Upside
    Apr. 27, 2014 BWLD 1 Comment

    Summary

    • We think the restaurant space is growing more and more crowded, but Buffalo Wild Wings has a formula that is working.
    • The company's long-term restaurant potential is phenomenal.
    • Though new money should be cautious with Buffalo Wild Wings at current levels, we like the company as a holding in the Best Ideas portfolio.
  • Profiling The Railroads And Norfolk Southern
    Apr. 26, 2014 NSC 11 Comments

    Summary

    • We think the railroads have strong business models.
    • Railroads such as Norfolk Southern are exposed to CAPP coal and are at a disadvantage long term, in our view.
    • We like Union Pacific the most out of the railroad industry.
  • Why Yahoo Is In Great Hands But Alibaba Is Overhyped
    Apr. 26, 2014 YHOO 17 Comments

    Summary

    • We were once bearish on Yahoo, but the potential monetization of its Asian assets has proved us wrong.
    • We're still surprised the market is valuing Alibaba at such a lofty price, but we admit there is a ton of value in this asset.
    • We think Yahoo may have reached its peak share price range at this juncture.
  • Why Chipotle's Valuation Is Absurd
    Apr. 26, 2014 CMG 25 Comments

    Summary

    • Chipotle, the company, has some good times ahead of it, but its stock valuation is out of whack.
    • We think Chipotle is more exposed to a market correction than most.
    • The firm's Valuentum Buying Index score is not promising.
  • Why Twitter Is Irrationally Overpriced
    Apr. 25, 2014 TWTR 70 Comments

    Summary

    • Twitter's current market capitalization of $25 billion is quite ridiculous.
    • We're expecting significant downside.
    • Worst case scenario, we don't think the world is large enough for the number of social media platforms out there.
  • Why Verizon Is Dead Money
    Apr. 25, 2014 VZ 63 Comments

    Summary

    • We dislike debt.
    • Verizon will be taking on a mountain of debt as it folds in all of Verizon Wireless.
    • We expect the firm's dividend growth and credit rating to be compromised.
  • Why Google Has Upside To Nearly $650
    Apr. 25, 2014 GOOG, GOOGL 19 Comments

    Summary

    • After its fantastic run, Google still has upside potential.
    • At Valuentum, we like to look at things from a variety of perspectives.
    • Google remains one of our best ideas until it registers a poor rating on the Valuentum Buying Index.
  • Currency Headwinds Intensify At Coke And Pepsi
    Apr. 25, 2014 KO 4 Comments

    Summary

    • Currency can no longer be completely ignored at Coke and Pepsi.
    • We like both firms, but point to Coke as the better relative idea.
    • Our best ideas are included in Valuentum's Best Ideas portfolio.