Analysis

The Market is Too Excited About this Company Being the Gillette of Industrial Machinery

December 6, 2019
If you’ve been in a business class in the past 20 years, or read any book on great companies, you’ve probably heard about the “razorblade model.”
Recent Newsletters
December 5, 2019
The Automation Wave is Real, But This Stock Doesn’t Have to Go Higher Because of It
Rockwell Automation (ROK) has had impressive Uniform Returns for the past 15 years, and in particular the past 8. Since 2011, Rockwell has consistently been able to produce Uniform ROA above 20% a year, year in, year out
December 4, 2019
Investors May be Too Excited About E-Commerce’s Impact on This Business
The rise of e-commerce has doomed many great brands of the past 100 years. Sears and Kmart, Barney’s New York, Payless Shoes, Circuit City, Radio Shack, and Borders are just a few of the biggest names that have gone under
December 4, 2019
Investors May be Too Excited About E-Commerce’s Impact on This Business
The rise of e-commerce has doomed many great brands of the past 100 years. Sears and Kmart, Barney’s New York, Payless Shoes, Circuit City, Radio Shack, and Borders are just a few of the biggest names that have gone under
December 3, 2019
This Company is a Great Example of Why Recessionary Risk is Fading
Those of you who have read our Market Phase Cycle™ report know that a core focus of our macro work is on understanding credit cycles. Over the last 150 years
December 2, 2019
This Company’s P/E Masks How Cheap It Really Is
Last Tuesday, we wrote a Valens Research Institutional Daily on Ford, where we highlighted how rare it is for a company to trade at a material discount to their asset base, when it's cleaned up to remove the accounting noise under
November 27, 2019
Wishing you a happy Thanksgiving, or Franksgiving if you’d prefer
When most people think of our most influential presidents, three that immediately come to mind are Washington, Lincoln, and FDR. These three men played massive roles in framing the America
November 26, 2019
Your Capital Structure is as Important as Your Business Model
Many airline analysts talk about Southwest (LUV) as a mythical operating company. A company that can buck the economic trends that historically brought down other airlines regularly for the past 50+ years
November 25, 2019
This company is helping evolve the continuum between advertising, consulting, and investment banking
Once upon a time, advertising, consulting, and investment banking all had clearly defined roles in servicing a corporation
November 22, 2019
This company is going through the “Adobe” – and they’re only halfway through their journey
In April 2012, Adobe took a step into the unknown. Many investors lambasted them for their strategy shift, saying they were insane. Adobe was abandoning their cash cow software business, where
November 21, 2019
This Company Employs the Nurses Taking Care of You, that You Don’t See at Your Bedside
If you’ve ever been in a hospital, whether your memory of the visit was good or bad, you probably remember your nurses. Nurses are the front line of healthcare, managing patient care, acting as the face and
November 20, 2019
Customers Pay this Company for the Right to Spend More in its Stores
Behavioral economics regularly highlights that humans are anything but the homo economicus that your introduction to economics professor so desperately wanted you to believe in. Humans often are
November 19, 2019
The Real Reason for this Tech Superpower’s Name
If you’ve watched The Men Who Built America or studied the history of Dr. Nikola Tesla, you may know the famous story of Tesla and Thomas Edison’s falling out. Tesla was working for Edison at would eventually become General Electric, and had many innovative ideas. When Tesla proposed
November 18, 2019
One of America’s Great Business Builders
Most people would dream to create a single billion dollar business.
November 15, 2019
This Company is a Star of America’s Mittelstand
There are many factors that researchers point to as having helped fuel Germany’s impressive growth over the past twenty years.
November 14, 2019
I’m at the CFA Institute Equity Research & Valuation Conference Today
Hello from New York City. I’ll be presenting at the CFA Institute Equity Research & Valuation Conference today. My presentation is titled “NOT EVEN Apples to Oranges”, and I’ll be talking about how problematic GAAP and non-GAAP metrics are for investors
November 13, 2019
The Battle to be the Monte Carlo of the West
In the 1950s, Las Vegas’ position as the preeminent destination for gambling in the Americas wasn’t yet secure. The mob and others had heavily invested in Vegas and business was booming, but there was a rival constantly threatening Vegas. Most people now
November 12, 2019
Portfolio churn can destroy value for investors, and for companies
One of the first questions that an investor generally asks when they’re talking to an asset allocator is “what is your portfolio churn.” Investors worry that if a manager is constantly buying and selling stocks, transaction fees will
November 11, 2019
The most boring market in finance can also be its most terrifying
September 2008 was a truly terrifying month for anyone in finance. Fannie and Freddie went into conservatorship on the 7th. Bank of America bought Merrill Lynch on the 14th, to prevent it going under when
November 8, 2019
This company owns the discount retail world
There are so many choices for makeup when a woman walks into a CVS or a Wallgreens. There’s Bobbi Brown, Clinique, Estee Lauder, MAC, Glamglow, Becca, just to name a few. There are options for
November 7, 2019
What sharks and Russians have in common
A scary report emerged from Washington DC in 2018. It shed light on a concern that many in the national security apparatus have been aware of for decades. The Russian state is