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  • Why Dresser-Rand's Shares Are Cheap [View article]
    Thanks so much Holthusen!

    Kind regards,

    The Valuentum Team
    Sep 19, 2014. 09:57 AM | Likes Like |Link to Comment
  • Calculating Facebook's Intrinsic Value Is Not Insurmountable [View article]
    cashawash,

    Thank you kindly for the comment!

    Regards,

    The Valuentum Team
    Sep 15, 2014. 04:42 PM | Likes Like |Link to Comment
  • Calculating Facebook's Intrinsic Value Is Not Insurmountable [View article]
    Hi Justin,

    Here's an excerpt from a recent article we wrote about '5 Questions Advisors Should Ask When Interviewing Fund Managers":

    Can you explain the difference between ROA, ROE, and ROIC?

    "What you are looking for in the answer is a response that goes into the pitfalls of using return on assets (ROA) and return on equity (ROE) as a measure of a firm’s ability to generate value for shareholders.

    Ideally, you’d want to hear a response that says ROA is muddied by the inclusion of non-operating cash in the denominator and that ROE is impacted by leverage (assets divided by equity). The very best of fund managers will refer to the DuPont (DD) equation in explaining that the third term when breaking apart ROE is leverage. The best answer may explain how some firms can hide deteriorating profitability (net income divided by sales) and asset turns (sales divided by assets) by taking on more and more debt to bolster ROE.

    What you want is an answer that says ROIC is the best measure of a firm’s ability to generate economic value for shareholders. The very best answer will include a response that says return on new invested capital (RONIC) is the most informative measure of a company’s ability to continue to generate economic value for shareholders. RONIC is calculated by taking NOPLAT (net operating profit less adjusted taxes) divided by net new investment (capital expenditures less depreciation adjusted for working capital).

    Be wary of fund managers that just rely on ROE and ROA. These measures provide some information about the return potential of a company, but they have their pitfalls. Every fund manager should know about them."

    Thank you for reading!

    Kind regards,

    The Valuentum Team
    Sep 15, 2014. 04:41 PM | 1 Like Like |Link to Comment
  • Evaluating Accenture's Economic Value Creation And Fair Value [View article]
    Hi bookzeller,

    All of our analysis is available at your convenience on our website:

    http://www.valuentum.com

    Thanks for your interest!

    The Valuentum Team
    Sep 14, 2014. 07:31 PM | Likes Like |Link to Comment
  • The Market Fully Appreciates Seadrill's Execution [View article]
    Just closing the loop on this comment chain. Seadrill has fallen considerably since this article was published. Thank you all for reading!

    The Valuentum Team
    Sep 13, 2014. 12:05 PM | Likes Like |Link to Comment
  • The Market Fully Appreciates Seadrill's Execution [View article]
    Goalkick9:

    You may have missed this in the article: "We're not saying the dividend is going to get cut at this time, but as was displayed in the financial crisis, the firm's over-leverage can be a recipe for disaster (when shares dropped from nearly $37 to $6 and change). When it comes to dividend growth investing, we don't ignore the capital risks."

    Thanks for reading!

    The Valuentum Team
    Sep 13, 2014. 12:03 PM | Likes Like |Link to Comment
  • The Market Fully Appreciates Seadrill's Execution [View article]
    long_on_oil,

    Even after the fall to the low $30s, we still believe there is tremendous risk to Seadrill's business model.

    Thanks for reading.

    The Valuentum Team
    Sep 13, 2014. 12:02 PM | Likes Like |Link to Comment
  • The Market Fully Appreciates Seadrill's Execution [View article]
    Gary:

    You may have missed this in the article: "We're not saying the dividend is going to get cut at this time, but as was displayed in the financial crisis, the firm's over-leverage can be a recipe for disaster (when shares dropped from nearly $37 to $6 and change). When it comes to dividend growth investing, we don't ignore the capital risks."

    Thanks for reading!

    The Valuentum Team
    Sep 13, 2014. 12:00 PM | Likes Like |Link to Comment
  • Seadrill Doesn't Quite Make The Cut [View article]
    We wanted to close the comment chain on this article. When this article was published in September 2013, Seadrill was trading in the high $40s per share and as of September 2014 is trading just above $30 each. The firm has been a significant underperformer in a market that has gone higher since then.

    Thank you all for reading!

    Kind regards,

    The Valuentum Team
    Sep 13, 2014. 11:57 AM | Likes Like |Link to Comment
  • We Don't Think SeaDrill's Dividend Is Sustainable [View article]
    This article was published August 20, 2012 when Seadrill was trading at $41 and change.

    As of September 12, 2014, it is trading at $33 and change.

    The market has advanced considerably since this time, making Seadrill one of the worst relative performers, even after considering the dividends paid.

    Thank you all for reading. We're honored to close the comments section of this article, knowing that we've done a job well done!

    All the best,

    The Valuentum Team
    Sep 13, 2014. 11:37 AM | 1 Like Like |Link to Comment
  • Evaluating GlaxoSmithKline's Intrinsic Value [View article]
    Thanks rickjoy403! We appreciate it!

    Kind regards,

    The Valuentum Team
    Sep 12, 2014. 11:28 PM | Likes Like |Link to Comment
  • Evaluating GlaxoSmithKline's Intrinsic Value [View article]
    Stock_doc,

    Thank you for reading! We appreciate the comment!

    Kind regards,

    The Valuentum Team
    Sep 12, 2014. 11:28 PM | Likes Like |Link to Comment
  • Seadrill's Financials Speak Of A Very Risky Enterprise [View article]
    katytrader,

    Do you think we lack understanding now?

    Thanks for your comment!

    The Valuentum Team
    Sep 12, 2014. 06:14 PM | 1 Like Like |Link to Comment
  • Seadrill Doesn't Quite Make The Cut [View article]
    Ratchet916,

    Have you changed your opinion?

    Thanks for reading!

    The Valuentum Team
    Sep 12, 2014. 06:13 PM | Likes Like |Link to Comment
  • Seadrill Doesn't Quite Make The Cut [View article]
    Thanks Akaralph. We hope you'll take a look! We're not afraid to go against the crowd when we're right.

    Kind regards,

    The Valuentum Team
    Sep 12, 2014. 06:11 PM | Likes Like |Link to Comment
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