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  • Kinder Morgan Inc - Look Past The Punditry And See The Big Picture [View article]
    Steve,

    We're sure Brian will be able to answer your question. He can be reached at brian@valuentum.com.

    Our best wishes,

    The Valuentum Team
    Jun 22, 2015. 07:32 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Inc - Look Past The Punditry And See The Big Picture [View article]
    User 12839421,

    Thank you for the correction. Mr. Nelson's article has been fixed (24 --> 19). There are a few things at work here that are worth clarifying.

    1) The debt, net of cash is what it is. There are few, if any, investment-grade corporations (not MLPs) with ~6x reported leverage, and none that pay out such a lofty dividend, to our knowledge.
    2) The ~$100 billion in equity "value" is supported by sell-side analyst dividend discount models, and a 4% discount rate should certainly be suspect. You've uncovered a very important dynamic that is "propping" up the stock. Thank you for emphasizing this point.
    3) In your example, EBITDA cannot be perped to arrive at either enterprise value or equity value, and certainly not at a 5% discount rate. Not only is the assumption in "perping" EBITDA that KMI will never have another capex outflow in any form, but implicitly it assumes no change in interest rates over the useful life of their pipelines. The company's equity cost of capital is significantly higher than 5%, and some will argue that its after-tax cost of debt should mirror that of junk status.

    Thank you again for finding the correction. The change does not materially impact our thesis.

    Kind regards,

    The Valuentum Team
    info@valuentum.com
    Jun 22, 2015. 05:40 PM | 2 Likes Like |Link to Comment
  • 5 More Reasons Why We Think Kinder Morgan's Shares Will Collapse [View article]
    All,

    Thank you again for your comments and interest. I'm always available at brian@valuentum.com.

    My best regards,

    Brian
    Jun 21, 2015. 01:01 AM | 1 Like Like |Link to Comment
  • Is Michael Kors Growth Being Overlooked By Investors? [View article]
    Thank you for your comments. We appreciate your thoughts, and hope that you will continue to share them.

    Our fair value estimate on Michael Kors is based on our estimate of its expected future free cash flows, which consider expected comp and unit expansion, as well as international considerations.

    As the article mentions, our fair value estimate on this basis is significantly above where Michael Kors is trading. On a forward looking basis the company is trading just north of 10 times earnings, and it boasts a net cash position.

    Investors may be focusing too closely on handicapping comp performance in any given quarter and are likely missing the entire valuation picture. Hope this helps clarify how intriguing the Michael Kors' story has become.

    We are available at info@valuentum.com for any further questions.

    Thank you,

    The Valuentum Team
    Jun 9, 2015. 10:36 AM | 1 Like Like |Link to Comment
  • Not Considering salesforce.com, Shares Not Cheap [View article]
    IronMan4,

    We think you have great questions! Feel free to reach out to us at info@valuentum.com, and we'll be happy to address them.

    Our best wishes,

    The Valuentum Team
    Jun 5, 2015. 09:33 AM | Likes Like |Link to Comment
  • Not Considering salesforce.com, Shares Not Cheap [View article]
    Thank you for the questions!

    We make available our fully-populated discounted cash-flow valuation models, where you can take a look at all of our assumptions, to members of our financial advisor plan.

    Here is more information:

    http://bit.ly/xf6xWg

    Thanks for reading!

    The Valuentum Team
    Jun 4, 2015. 12:50 PM | 1 Like Like |Link to Comment
  • Skyworks Still Has Upside Potential [View article]
    Hari,

    Thanks for reading and commenting!

    The Valuentum Team
    Jun 2, 2015. 03:16 PM | Likes Like |Link to Comment
  • Skyworks Still Has Upside Potential [View article]
    Ernie Mac,

    Thanks so much for reading!

    The Valuentum Team
    Jun 2, 2015. 03:15 PM | Likes Like |Link to Comment
  • Is McDonald's Losing Its Economic Castle? [View article]
    Here's a walk-through of the work that goes into our discounted cash-flow process, which we use to derive the fair value estimate for McDonald's and all other companies in our coverage:

    http://bit.ly/xf6xWg

    Kind regards,

    The Valuentum Team
    Jun 2, 2015. 03:14 PM | Likes Like |Link to Comment
  • Is McDonald's Losing Its Economic Castle? [View article]
    Equity price performance and intrinsic value are based on the trajectory of fundamentals and what is already captured within the price of the stock. A slowdown as a result to a mix shift toward healthier fast-casual offerings could impair value-creation and therefore pressure the stock, even if its core customer remains loyal.

    Thank you for reading!

    The Valuentum Team
    Jun 2, 2015. 03:13 PM | Likes Like |Link to Comment
  • Is McDonald's Losing Its Economic Castle? [View article]
    Hi,

    Thank you for your comment.

    Here is Cracker Barrel's news today:

    Cracker Barrel higher after guidance boost and special dividend

    http://seekingalpha.co...

    Kind regards,

    The Valuentum Team
    http://www.valuentum.com
    Jun 2, 2015. 03:10 PM | Likes Like |Link to Comment
  • Intel's Acquisition Program Not Likely To Threaten Dividend [View article]
    Bruce,

    Thanks for reading and commenting!

    It's important to think about the fair value range in terms of upside and downside. For example, is there more upside in the fair value range relative to the current stock price or downside? In Intel's case, we'd posit that shares have more upside potential, which we quantify as high as the mid-$40s.

    We'd think the stock would become very cheap after considering a margin of safety below $30, the low end of the range. Approaching valuation this way is quite helpful in quantifying both upside potential and downside risk through the valuation process. And of course, our point fair value estimate is $38 per share.

    Hope this clarifies how to think about some of the nuances of the fair value range.

    Kind regards,

    The Valuentum Team

    May 29, 2015. 10:44 AM | Likes Like |Link to Comment
  • Intel's Acquisition Program Not Likely To Threaten Dividend [View article]
    TUCKEY,

    Thank you so much for the kind words.

    All the best,

    The Valuentum Team
    May 29, 2015. 10:40 AM | Likes Like |Link to Comment
  • International Paper Pursues Dividend Growth Despite Low Cushion [View article]
    Thank you so much for reading!

    Kind regards,

    The Valuentum Team
    May 29, 2015. 10:38 AM | Likes Like |Link to Comment
  • Target's Strong Quarterly Performance Masks Long-Term Canada Blunder [View article]
    kevinconway,

    Thank you for your thoughts!

    Yes, Canada is a different country than the US, and its consumers are different, but not as different as than, let's say, a country than does not speak English at all and is based on the other side of the world. If not Canada, then where else? That's what we're trying to get at with just a quick mention of the blunder. It sounds like you agree.

    Kind regards,

    The Valuentum Team
    May 24, 2015. 01:15 PM | Likes Like |Link to Comment
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