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  • 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
  • Omega Healthcare's Shares Look Cheap [View article]
    Thanks DAG Investments!

    Kind regards,

    The Valuentum Team
    May 20, 2015. 06:47 PM | 1 Like Like |Link to Comment
  • Omega Healthcare's Shares Look Cheap [View article]
    cpo111,

    Thanks for the question. We make all of our dividend forecasts available in the dividend reports on our website, http://www.valuentum.com.

    Kind regards,

    The Valuentum Team
    May 20, 2015. 06:46 PM | Likes Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    Be Here Now,

    Excellent comment.

    Most MLPs and REITs pay out a large portion of their earnings as distributions such that their traditional payout ratios (distributions divided by accounting earnings) are significantly above 100%, revealing a dependency on capital markets. This topic is exactly what you've surfaced by mentioning "distributable cash flow."

    "Distributable cash flow," as included in many regulatory filings, only considers maintenance capex of the operations and not growth capex, which is necessary to fuel operating cash increases. If we consider growth capex in the calculation of "distributable cash flow," as in the calculation of free cash flow for a traditional corporate, many MLPs simply cannot cover the distribution.

    This is what is meant when we say MLPs are dependent on future equity or debt issuance. They require outside capital from the markets or from a sponsor, and the very idea that growth capex is not included as a reduction to "distributable cash flow" means that MLPs are capital-market dependent. Their business models allow such representation of the financials but it is why their business models are much riskier.

    Thank you again for the comment and giving me the opportunity to explain this key important difference to investors -- the difference between "distributable cash flow" and "free cash flow." They are not the same.

    Brian
    May 20, 2015. 12:32 PM | Likes Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    shaz568,

    Thank you for your thoughts.

    All the best,

    Brian
    May 20, 2015. 12:24 PM | Likes Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    gmansour,

    Altria has certainly been one of the best performers in stock market history.

    My best wishes,

    Brian
    May 20, 2015. 12:23 PM | 1 Like Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    AdrianCT,

    Thanks for sharing!

    All the best,

    Brian
    May 20, 2015. 12:22 PM | 1 Like Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    Arthur_bishop1972,

    Thanks for the comment. The uniqueness and explanation of the valuation of SABMiller within the context of an enterprise free cash flow model may make our note an exception. Hope you find future ones informative, if not this one.

    Most appreciative of the comment,

    Brian
    May 20, 2015. 12:22 PM | 2 Likes Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    jbp3,

    Excellent comment. I appreciate your opinion. It sounds like you're doing great!

    Kind regards,

    Brian
    May 20, 2015. 12:21 PM | Likes Like |Link to Comment
  • Is It Time To Consider Selling Altria? It Depends [View article]
    Divvy Investor,

    Thank you for sharing your opinion. Altria has been a great performer over history.

    Kind regards,

    Brian
    May 20, 2015. 12:20 PM | Likes Like |Link to Comment
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