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  • Seadrill Doesn't Quite Make The Cut [View article]
    Hi examp,

    We'd love to invite you to our website to view our research on Seadrill. Here's the link:

    Thanks for reading!

    The Valuentum Team
    Sep 7, 2013. 10:48 AM | Likes Like |Link to Comment
  • Seadrill Doesn't Quite Make The Cut [View article]
    Hi Katytrader,

    We serve the needs of the financial advisor, so we cover a lot of firms. We view HAL, SLB, and CAM as more representative of the space than actual competitors. Financial advisors want to see the entire landscape to make sure they are getting the best possible idea out there.

    Our relative value assessment is secondary to our DCF process, which is tied directly to the fundamentals of Seadrill.

    Thank you for reading!

    The Valuentum Team
    Sep 7, 2013. 10:47 AM | Likes Like |Link to Comment
  • Seadrill Doesn't Quite Make The Cut [View article]
    Hi SaltyDog62,

    Thank you for noticing. We are completely independent and do not manage any money. The only thing we gain is the satisfaction of saving our members money. Please visit us at our website if you'd like.

    Thanks again!

    The Valuentum Team
    Sep 7, 2013. 10:45 AM | Likes Like |Link to Comment
  • Need A Second Opinion On National Oilwell Varco's Intrinsic Value? [View article]
    We target mid-cycle operating assumptions during the out-years (post Year 5), capturing the relevant economic profit spread that is generated through the course of the economic cycle.

    Great question, merechino.

    Kind regards,

    The Valuentum Team
    Sep 6, 2013. 02:12 PM | Likes Like |Link to Comment
  • More on Hedgeye's takedown of Kinder Morgan companies [View news story]
    Doesn't Hedgeye understand that book value can be negative and a firm can still have tens of billions in market capitalization. When a firm pays out a distribution, its equity is reduced by the amount of the distribution. This is just how accounting works.

    Also, for example, please pull up Boeing's annual report (maybe from 2009)--you'll see that the aerospace giant had negative equity during most of the past last decade. Yet, its market cap is $80 billion.

    We haven't seen the Hedgeye report, but a small book value or even negative equity is nothing to be concerned about.
    Sep 4, 2013. 01:49 PM | 10 Likes Like |Link to Comment
  • Kinder Morgan companies sink after scathing Hedgeye report [View news story]
    We haven't seen a good idea out of Hedgeye yet. Frankly, we're not sure why they get any press. Look at their call to sell all US stocks in 2010. There should be some accountability for their calls.
    Sep 4, 2013. 11:54 AM | 6 Likes Like |Link to Comment
  • How Investors Can Mitigate Their Portfolio Risk In Today's Tumultuous And Volatile World: Part 1 [View article]
    Hi Chuck,

    We were wondering if you have ever come across a risk measure that we might be able to use to better show off our Best Ideas portfolio's risk-adjusted outperformance.

    For example, when looking at the Sharpe ratio, it considers upside risk in the same fashion as downside risk. It does not differentiate between the two. Though our Best Ideas portfolio has superior risk-adjusted performance (think above the CML), we'd be able to make it stand out even more versus peers by showing that most of the risk of our Best Ideas portfolios is actually to the upside.

    Are you aware of a measure that better quantifies downside risk?

    Thanks again,

    The Valuentum Team
    Sep 3, 2013. 07:41 PM | Likes Like |Link to Comment
  • Core Labs: This Firm Is One Of The Most Overvalued On The Market [View article]
    Yes, you are correct. Wide moat firms can be overvalued. And to answer your follow-up, yes they can stay overvalued for a while.

    Thanks for reading!

    All the best,

    The Valuentum Team
    Sep 3, 2013. 07:34 PM | Likes Like |Link to Comment
  • How Investors Can Mitigate Their Portfolio Risk In Today's Tumultuous And Volatile World: Part 1 [View article]

    This is some great work. We also came across one of the more influential statements by Mr. Fama in this decade:

    "Of all the potential embarrassments to market efficiency, momentum is the primary one." Eugene Fama, the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago GSB. Excerpt from: An Experienced View on the Markets and Investing; published in Financial Analyst Journal, Volume 68, Number 6. Page 18. November/December 2012.

    We'd love to get your thoughts on the idea of momentum -- and generally how you think about this particular phenomenom in your practice?

    Also, please also be cognizant that there is a fundamental beta, something that we use to arrive at the earnings multiple we assign to a stock. The fundamental beta is independent of a firm's stock volatility, but instead focuses on the risks of the firm's underlying business.

    We think the core of your work is correct though -- there is a difference in both academic work and professional implementation.

    Kind regards,

    The Valuentum Team
    Aug 30, 2013. 10:26 AM | Likes Like |Link to Comment
  • Distribution Coverage Deteriorates At Linn Energy [View article]
    Yes, we're quite disappointed, too. We certainly want to get our best stuff out to you, but we can't give it all away for free on Seeking Alpha. We have families to feed, too.

    Here's where we revisited the risks for our members, on our own equity research site -- early June:

    I hear you. We want you and everyone to become our member. We don't want to have to come back to the Seeking Alpha boards -- we want you to do well, and to see our current opinion on our site.

    Again, we're frustrated, too, but again, we exist beyond the boundaries of Seeking Alpha. I think readers are aware of that. If not, please do visit.

    All the best,

    The Valuentum Team
    Aug 30, 2013. 09:33 AM | Likes Like |Link to Comment
  • Digging Into Seadrill's Dividend [View article]
    The stock goes from $35 to $5 in the Great Recession, yet management continues to hike the dividend. What happens when its balance sheet comes home to roost. Will the stock take another gallant plummet. There's risk to this story, and it's clearly documented.
    Aug 30, 2013. 09:10 AM | Likes Like |Link to Comment
  • Gundlach says Herbalife chart inviting for shorts [View news story]
    We do believe firmly that Gunlach is more technician than analyst -- and as a result less interesting. The chart is available for all to see.
    Aug 29, 2013. 07:35 PM | 1 Like Like |Link to Comment
  • Credit Markets Not Too Worried [View article]
    Three short paragraphs and a chart?
    Aug 28, 2013. 04:02 PM | 1 Like Like |Link to Comment
  • Ever Wonder What Lululemon Is Really Worth? [View article]
    Hi meta9999,

    Thank you for your response. It is because of the reasons you mention above that this type of analysis IS valuable. It allows investors to really dig into just how volatile and largely unpredictable firms operations can be and just how wide the range of potential valuation outcomes can be, especially for Lululemon.

    The simple answer is that, for Lululemon, it SHOULD have a wide range of ourcomes and, in our view, the stock is neither overvalued nor undervalued if it falls within our fair value range, where the stock SHOULD be trading.

    Also, valuations can and SHOULD change. It should almost be expected that our valuation will change in future updates. As companies collect free cash flow through the year, their values should increase. And our methodology does not suggest that we will even be interested in shares under $53. We'd still demand a strong technical foundation, and even then, we may still have better opportunities in our portfolios. We don't view Lululemon as a core holding by any stretch of the imagination.

    Our website is filled with a wealth of great information. Though we understand you are a professional, it may be worth a look, especially if you're looking for analytics of this rigor on other firms.

    Kind regards,

    The Valuentum Team
    Aug 28, 2013. 03:57 PM | Likes Like |Link to Comment
  • We Like National Oilwell Varco's Long-Term Fundamentals [View article]
    Thanks Jim. Only a select few companies make the grade as it relates to registering a high score on our Valuentum Buying Index, our stock-selection methodology. And even fewer make it into our actively-managed portfolios, which we provide to members. We cover quite a number of equities, so we have the opportunity to comment on a wide variety of firms.

    Kind regards,

    The Valuentum Team
    Aug 28, 2013. 03:51 PM | Likes Like |Link to Comment