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  • Don't Be Fooled: IBM Still Reporting Low-Quality Earnings [View article]
    Hi all,

    We've reported the insulting comments and derogatory name calling. For those that found the article informative, thanks for reading.

    The Valuentum Team
    Aug 12 11:49 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    Rich,

    If you would like to read about the Valuentum principal's qualifications, you can access them at the following link:

    http://bit.ly/TZX0Tn


    Valuentum's fair value estimate for D is $64 per share. We noticed that many other research firms have been behind us raising their fair values.

    The Dividend Cushion is a dividend safety and ranking mechanism. It does not make assumptions about financing activities by management. It is a comprehensive measure of dividend safety and growth potential considering the firm's balance sheet. It is not a liquidity measure in the sense that it is not pinpointing potential default -- the measure focuses on dividend health, not the likelihood for debt repayment.

    If we may, here is the response we were hoping to get from this article. We plan to write more of our takeaways in the article so it is easier to understand:

    "I had not known that a utility's debt load had an influence on its ability to pay dividends. That's interesting. I see how First Energy and Exelon were forced to cut their dividends. Fascinating point. I also noticed that Valuentum's fair value estimate is $64 per share -- they're not anticipating a material decline in the stock price (in fact, they've been ahead of the curve versus other research firms). Also, it's really interesting how they can break down dividend growth in the near term and in the long term. It helps convey that dividends are independent of equity valuation, too. There is a lot in this article that I can learn from, even if I still really, really like Dominion. In fact, Valuentum thinks Dominion will raise its dividend for the foreseeable future, even though it is highlighting important risks to make me a better investor. That's just a great point about the debt -- they're the only ones talking about it. Excellent."

    Thought we might help out a bit. :)

    Kind regards,

    The Valuentum Team
    Aug 2 05:43 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    Rich,

    Thank you for reading our piece. Here's what to expect from D in the near-term:

    Dominion's dividend should expand roughly in-line with earnings growth (over the near term), as management is targeting paying out 65%-70% of operating earnings per share each year.

    Thanks for participating!

    The Valuentum Team
    Aug 2 04:28 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    rlp2451,

    Thank you for bringing up our ideas.

    Our best ideas are included in the Best Ideas portfolio and the best dividend growth ideas are included in the Dividend Growth portfolio. These can only be found on our website.

    The articles are NOT ideas. They are articles and research.

    Thanks for bringing up this point.

    Kind regards,

    The Valuentum Team
    Aug 2 04:23 PM | Likes Like |Link to Comment
  • Leggett & Platt: Evaluating Its Dividend [View article]
    Uain53,

    Thanks for your comment!

    Kind regards,

    The Valuentum Team
    Aug 2 01:11 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    minor,

    We have two reports on Dominion -- a stock report and a dividend report. What you have read in this article is financial analysis of Dominion's dividend. We understand that a dividend is not everything to some investors, it is the only thing -- which is why we devote so much time to it.

    However, here's our research suite on Dominion:

    http://bit.ly/Xthp7g

    It may be difficult to understand but we don't have a horse in this race. We're completely objective, providing financial analysis to readers. We're not trying to 'move' you, per se, we're trying to establish a frame of reference to understand key risks that are not well-known. Here's how we think about forecasts and the company's prospects:

    http://bit.ly/1i9DIlD

    Thanks for reading!

    The Valuentum Team
    Aug 2 01:02 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    rosenose,

    The capacity to pay back debt is a different measure that the capacity to pay dividends. Debt is higher on the capital structure than equity and dividends are paid to equity. That's not a conversation for Dominion, however. We like to stick to the tangible facts, including providing objective analysis regarding the financial statements.

    Also, did you know that there is an implicit compliment in your statement? Brian, Valuentum's President, built a large portion of Morningstar's credit rating methodology. Pretty interesting, no? Here's his profile:

    http://bit.ly/TZX0Tn

    Thanks for reading!

    The Valuentum Team
    Aug 2 12:57 PM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    YCantIRetire,

    Most established research firms usually rely on a relationship with the customer before handing over modeling forecasts and/or architecture. Could we interest you in something like this? We're an independent research firm -- so we depend on support from our members.

    Thanks for reading!

    The Valuentum Team
    Aug 2 11:20 AM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    txwoodworker,

    We sure do a lot of work for this to be a commercial broadcast. If we wanted to have a commercial broadcast, we'd go on TV. Brian does quite frequently. Here's a recent clip:

    http://cnb.cx/1zHwCzw

    Thanks for reading!

    The Valuentum Team
    Aug 2 11:19 AM | 1 Like Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    rosenose,

    Debt matters more than you 'nose'. For one, think about cash-rich firms with no debt -- and what their payouts might be (the cash returned to shareholders) if they decided to lever up. Debt matters very, very much.

    Thanks for reading!

    The Valuentum Team
    Aug 2 11:15 AM | 1 Like Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    rlp2451,

    The credit ratings of utilities are of utmost importance -- and take priority of dividend payments. This is the primary risk we were hoping to bring to light in the piece. The balance sheet is very important -- that's why we used EXC and FE as tangible, real-life examples.

    Thanks for reading!

    The Valuentum Team
    Aug 2 11:14 AM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    devlau20,

    Thanks for the comment. We appreciate your insights, and we hope you continue to participate on Seeking Alpha! And most of all, we hope you come visit us.

    Kind regards,

    The Valuentum Team
    Aug 2 11:13 AM | Likes Like |Link to Comment
  • Will Dominion Resources Cut Its Dividend? [View article]
    Hi,

    Criteria for very poor safety and growth over the long haul:

    Dominion Resources scores a 0.5 on our Dividend Cushion™, which is VERY POOR. Why? Because the utility has more than $20 billion (yes, billion) in long-term debt (and an addition ~$4 billion in short-term debt) and only ~$400 million (that's million, not billion) in cash. The firm is leveraged to the hilt as it relates to net debt, and while its credit rating considers a variety of other factors, the capacity to keep paying a dividend (as it relates to the balance sheet) emanates from cash (net cash, to be more specific).

    Criteria for near-term growth expectations:

    Dominion's dividend should expand roughly in-line with earnings growth (over the near term), as management is targeting paying out 65%-70% of operating earnings per share each year.

    Thanks for the question!

    The Valuentum Team
    Aug 1 11:45 PM | 2 Likes Like |Link to Comment
  • AMD Won't Ever Catch Intel [View article]
    ftkelly,

    Thank you for the comment. AMD has fallen from ~$9 per share in 2011 to under $4 today. Intel, on the other hand, has performed wonderfully. We don't think our analysis is that controversial, but we appreciate the participation.

    Kind regards,

    The Valuentum Team
    Jul 31 07:05 PM | Likes Like |Link to Comment
  • AMD Won't Ever Catch Intel [View article]
    Jimster480,

    Thank you for the comment. The most important item that investors should take away is that the tech sector is ultra-competitive and fast-changing with significant pricing pressure. AMD, unfortunately, will always be positioned against Intel in the markets it serves.

    Thanks again for reading!

    The Valuentum Team
    Jul 31 07:03 PM | Likes Like |Link to Comment
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