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  • Why Qualcomm Is An Example Of The Importance Of Net Cash In Valuation [View article]
    user158,

    When a company is so powerful that only through antitrust litigation can it be stopped, then you know you've found a company with very sustainable competitive advantages. Warren Buffett would call it an economic moat. Thanks!

    The Valuentum Team
    Apr 3, 2015. 05:55 PM | 2 Likes Like |Link to Comment
  • Why Qualcomm Is An Example Of The Importance Of Net Cash In Valuation [View article]
    awayk,

    We focus on the fair value range, and we think Qualcomm's shares are cheap. Qualcomm's VBI rating is a 6. We're available if you have any questions on how to interpret the numbers.

    Thanks for reading!

    The Valuentum Team
    Apr 3, 2015. 05:54 PM | Likes Like |Link to Comment
  • Why Qualcomm Is An Example Of The Importance Of Net Cash In Valuation [View article]
    Aaron,

    Thanks for the comment! We think Qualcomm's borrowing costs are very low given the strength of its business model and the cash-flow generating capacity of its operations.

    The Valuentum Team
    Apr 3, 2015. 05:51 PM | 4 Likes Like |Link to Comment
  • Why Qualcomm Is An Example Of The Importance Of Net Cash In Valuation [View article]
    Hamdy Sadek,

    Thank you for reading!

    Our best wishes and be sure to visit us.

    The Valuentum Team
    Apr 3, 2015. 05:49 PM | Likes Like |Link to Comment
  • Why Qualcomm Is An Example Of The Importance Of Net Cash In Valuation [View article]
    Dave,

    Thanks for reading!

    Kind regards,

    The Valuentum Team
    Apr 3, 2015. 05:46 PM | Likes Like |Link to Comment
  • We've Soured On Chevron's Dividend... Sorry [View article]
    pappajoe79:

    Thanks so much for the kind comment! We are completely independent so we tend to be objective in our work. This may be different than other writers that may have positions in companies, for example. Wonderful! Please visit us if you'd like.

    The Valuentum Team
    Apr 3, 2015. 05:43 PM | 1 Like Like |Link to Comment
  • We've Soured On Chevron's Dividend... Sorry [View article]
    sgp,

    Great question! Forward-looking assessments are the most important in terms of stock analysis. Once something has happened, it has already reflected in the share price. Hope this helps explain why we want to position readers ahead of the news.

    All the best,

    The Valuentum Team
    Apr 3, 2015. 05:41 PM | 4 Likes Like |Link to Comment
  • We've Soured On Chevron's Dividend... Sorry [View article]
    Zero Point,

    Thanks so much for asking. We hold ~20 stocks in the Dividend Growth portfolio. The list is included in our Dividend Growth Newsletter. We appreciate your kind words very much. We hope you keep commenting!

    The Valuentum Team
    Apr 3, 2015. 05:37 PM | 3 Likes Like |Link to Comment
  • We've Soured On Chevron's Dividend... Sorry [View article]
    wildpitcher,

    We think you'd love our ETF analysis. Please check out information on the XLE on our website.

    Kind regards,

    The Valuentum Team
    Apr 3, 2015. 05:36 PM | 6 Likes Like |Link to Comment
  • Pricing Upside At Redbox A Huge Catalyst For Outerwall [View article]
    RoccoG,

    Thanks for your thoughts. We'll take them into consideration.

    I think the answer to your question is rather straightforward. The report backing this article is dated from a few weeks ago, prior to the release of audited 2014 results. The next update of the report will include the audited 2014 numbers. I think that what you are seeing is a timing dynamic. Unfortunately, there is no guarantee that we will publish another update on Outerwall on Seeking Alpha.

    Our best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 17, 2015. 10:48 PM | 1 Like Like |Link to Comment
  • Don't Count Out Best Buy [View article]
    Good day,

    Where do we begin?

    In an enterprise free cash flow model, the results do not conform to GAAP. If you want an accounting representation, the firm's 10-K is the best place to look. The use of a normalized cash tax rate alone within valuation will ensure non-conformity. Adjusted net income (from that change alone) will then impact the cash flow from operations and so on. What we're after in showing the pro forma financial statements is transparency, not precision. Valuation requires making a variety of adjustments, particularly within the context of an enterprise free cash flow model.

    There's a few things going on. 1) The Best Buy report came off of embargo from our site, so you are getting a glimpse of the report a few weeks after its publishing. Our members pay for the early look, and we only publish about 1% of our content on Seeking Alpha. 2) The near-term numbers in the Best Buy model have little if any bearing to the company's long-term intrinsic value estimate. When Best Buy releases its audited financials, our team will include the reported data and "roll" the model. We're not expecting a substantial fair value change in any case. 3) Re international concerns, one cannot exclude certain dynamics on the income statement and then not make the adequate adjustments on the balance sheet. This adjustment again will sort itself out when the model is rolled.

    We do have one comment. It is improper to only back out the cash in arriving at a PE ratio. Though using a PE ratio itself is incorrect, one would have to back out the net cash (i.e. net of debt). Again, one cannot pick and choose the metrics to look at. All-in, we strive to provide the best economic perspective of the company, and this requires adjustments.

    Adjust, adjust, adjust are three of the most common words of analysts.

    We have a wealth of learning information on our website. Please do visit us. Thank you for reading.

    The Valuentum Team
    info@valuentum.com
    Mar 17, 2015. 10:36 PM | Likes Like |Link to Comment
  • Pricing Upside At Redbox A Huge Catalyst For Outerwall [View article]
    RoccoG,

    Thank you for the comment. These comments remind us of the reasons why we do our best to help investors.

    Share buybacks can be considered a value-neutral event when cash from the balance sheet is reduced by a magnitude that is offset by the reduced shares outstanding. Only when there is a significant mispricing in the firm's fair value estimate and its price do share count changes from one year to the next create or destroy value.

    The valuation uses shares outstanding from the end of 2013. The shares outstanding number from the end of 2014 has changed considerably, but because there are offsetting dynamics on the balance sheet as well (from 2013 to 2014), the fair value estimate will not change. Share buybacks do not operate in a vacuum, as cash from the balance sheet, a source of value, is also reduced.

    There is a wealth of information on our website to learn more about valuation. Pasted below is a link that walks through how share buybacks add or subtract to intrinsic value:

    http://bit.ly/1j8D4JP

    Our best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 17, 2015. 11:39 AM | Likes Like |Link to Comment
  • Earnings Quality At Netflix Is Subpar [View article]
    Thanks for the comment. We think you bring up a great point that only reinforces our view of the importance of using discounted cash flow analysis, which is the work we do. Comp analysis will always use companies that are different, no matter how close their business models, end markets, or customer bases. Historical comp analysis assumes that the future outlook today, which derives the multiples is the same as the future outlook of yesteryear, which is also wrong.

    Discounted cash-flow analysis is the only process that values the unique traits of companies at the exact time that the company is being valued. Thank you again for the comment!

    The Valuentum Team
    info@valuentum.com
    Mar 17, 2015. 10:04 AM | Likes Like |Link to Comment
  • Hasbro's Fundamental Business Model Shift [View article]
    Dave,

    Thank you so much for the comment.

    Our best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 13, 2015. 09:40 AM | Likes Like |Link to Comment
  • Hasbro's Fundamental Business Model Shift [View article]
    Doug,

    Thank you so much for the comment.

    Wishing you a wonderful weekend,

    The Valuentum Team
    info@valuentum.com
    Mar 13, 2015. 09:39 AM | Likes Like |Link to Comment
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