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  • Pricing Upside At Redbox A Huge Catalyst For Outerwall [View article]
    Markann99,

    Thank you so much for the question. Here's a quick rule of thumb:

    "If share buybacks are completed at a price level that is under a firm’s fair value estimate, the activity is value-creating. If share buybacks are completed at a price level that is above a firm’s fair value estimate, they are value-destroying."

    We'd view buybacks completed at the present level a value-neutral proposition on the basis of our fair value.

    If you'd like to learn more about how share buybacks impact intrinsic value, here's a great piece on the topic (we apologize for the link):

    http://bit.ly/1j8D4JP

    Our best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 13, 2015. 09:35 AM | Likes Like |Link to Comment
  • Home Depot: Great Company, But Stock Too Expensive [View article]
    The latest innovation in value investing, or Valuentum, addresses the benefits of "letting winners run" in the following video. We apologize for having to provide a link but the video is worth watching for a few minutes.

    http://bit.ly/1xjYMho

    Thank you for reading!

    The Valuentum Team
    info@valuentum.com
    Mar 13, 2015. 09:31 AM | Likes Like |Link to Comment
  • Home Depot: Great Company, But Stock Too Expensive [View article]
    myliui888,

    Thank you so much for the comment. A common misunderstanding of Warren Buffett's process is that he does in fact time the market. When stocks become cheap, he buys more. Timing the market is not a bad thing. It is an essential tenet of being a value investor.

    Our best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 13, 2015. 09:27 AM | Likes Like |Link to Comment
  • General Electric's Dividend Growth Is Fantastic [View article]
    Bobcat9,

    GE's dividend is up ~50% from 2011. The company is on pace to get the dividend back to pre-crisis levels in the next few years, and this is but a backward-looking assessment. We think the firm's dividend growth prospects are strong on a forward-looking basis.

    The Valuentum Team
    info@valuentum.com
    Mar 11, 2015. 03:37 PM | 1 Like Like |Link to Comment
  • General Electric's Dividend Growth Is Fantastic [View article]
    shermantr,

    A fair question: why do you look backwards when you assess dividend growth potential?

    This is a great topic, which is what we're trying to address.

    Thanks,

    The Valuentum Team
    info@valuentum.com
    Mar 11, 2015. 03:35 PM | 2 Likes Like |Link to Comment
  • Corning Has A Lot Going For It [View article]
    derf nenhob,

    Per the fourth bullet point within the article itself:

    "• Corning Gorilla Glass is a thin sheet glass designed specifically to function as a cover glass for display devices such as tablets, notebook PCs, televisions and mobile phones. We like the growth prospects in this area, though sapphire technology is a tangible threat. The company has a lot going for it. Corning could eventually move into providing sapphire displays as well. The very idea that GT Advanced (GTAT) declared bankruptcy shows that risks remain for these display providers. Technology changes so fast."

    Thank you!

    The Valuentum Team
    Mar 10, 2015. 03:55 PM | Likes Like |Link to Comment
  • Corning Has A Lot Going For It [View article]
    derf nenhob,

    Tightening the fair value range truncates Corning's upside potential and would result in a company whose stock would then be considered overpriced.

    Thanks for reading.

    The Valuentum Team
    Mar 10, 2015. 03:53 PM | Likes Like |Link to Comment
  • Corning Has A Lot Going For It [View article]
    qwertyzyx,

    Our entire valuation process is forward-looking and considers expectations for growth, not inconsistent with consensus forecasts over the next few years.

    Kind regards,

    The Valuentum Team
    Mar 10, 2015. 03:52 PM | Likes Like |Link to Comment
  • Corning Has A Lot Going For It [View article]
    derf nenhob,

    Thank you again for your contributions to the article and raising these important questions.

    The fair value estimate, which is the midpoint of the range, can also be a very relevant metric. We refer to it as our best estimate of the company's intrinsic worth.

    The large fair value range of Corning is more about the uncertainty to the upside of the company, than it is about underlying business risk. If we were to tighten the fair value range, thereby ignoring some of Corning's upside potential, then shares would be considered overpriced.

    This is probably not what you are suggesting. Hope this provides some insight on how to think about this.

    Best wishes,

    The Valuentum Team
    info@valuentum.com
    Mar 10, 2015. 03:51 PM | 1 Like Like |Link to Comment
  • Lumber Liquidators Is Cheap But... [View article]
    Thank you JPevzner!

    Wishing you the very best,

    The Valuentum Team
    info@valuentum.com
    Mar 10, 2015. 01:15 PM | Likes Like |Link to Comment
  • Corning Has A Lot Going For It [View article]
    derf nenhob,

    Stock prices have tripled off the March 2009 bottom. A fair value range that considers the time-tested principles of a margin of safety, adopted and trumpeted by the likes of Warren Buffet and Benjamin Graham, is quite informative.

    The inability of analysts to predict a company's quarterly earnings reveals the inherent difficulty in fair value estimation and should be very telling about the fallacy of precision. Applying a reasonable discount to intrinsic value is a tried-and-true practice.

    Please also understand, however, that uncertainty is not only to the downside, but also to the upside. This is why Corning's fair value range may be larger than, say, Honeywell's, for example. Uncertainty is not only to the downside. This is what you are picking up in our work -- Corning's upside potential and wide range of opportunities.

    Again, we're after identifying valuation outliers across our entire coverage universe. We also provide a point fair value estimate, which is the midpoint of the fair value range.

    There are a large number of companies that fall outside of our fair value ranges for them, and those are the ones that we are very, very interested in.

    Hope this helps clarify things.

    Kind regards,

    The Valuentum Team
    info@valuentum.com
    Mar 10, 2015. 01:13 PM | Likes Like |Link to Comment
  • There Will Be A Better Time To Consider Honeywell [View article]
    derf nenhob,

    Stock prices have tripled off the March 2009 bottom. A fair value range that considers the time-tested principles of a margin of safety, adopted and trumpeted by the likes of Warren Buffet and Benjamin Graham, is quite informative.

    The inability of analysts to predict a company's quarterly earnings reveals the inherent difficulty in fair value estimation and should be very telling about the fallacy of precision. A 20% discount to intrinsic value is a very reasonable margin of safety in the grand scheme of things.

    Again, we're after identifying valuation outliers across our entire coverage universe. We also provide a point fair value estimate, which is the midpoint of the fair value range.

    There are a large number of companies that fall outside of our fair value ranges for them, and those are the ones that we are very, very interested in.

    Hope this helps clarify things.

    Kind regards,

    The Valuentum Team
    info@valuentum.com
    Mar 10, 2015. 01:09 PM | Likes Like |Link to Comment
  • Whoa! ConocoPhillips Has Moved Too Far Too Fast [View article]
    Thank you all for your comments! We like hearing from each and every one of you!

    Kind regards,

    The Valuentum Team
    Feb 21, 2015. 01:17 PM | Likes Like |Link to Comment
  • CSX Train Derails, A Material Event? [View article]
    deercreekvols,

    We appreciate the kind words. Thank you for reading!

    The Valuentum Team
    Feb 20, 2015. 03:39 PM | Likes Like |Link to Comment
  • CSX Train Derails, A Material Event? [View article]
    Thanks Joseph! Our best wishes as well.

    Kind regards,

    The Valuentum Team
    Feb 20, 2015. 03:38 PM | Likes Like |Link to Comment
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