Let's Be Frank
Season 1
by Brian Frank
What Worked in Value: Defense contractors had a great week, bolstered unfortunately by another flare up in the middle east conflict, but also by encouraging earnings reports from Booz Allen ticker BAH. What didn't work? Buying the dip worked as a trade but certainly did not work as of the end of this week. On the Hunting Trail for Value I found an interesting IPO to research this week, and no, it was not Spacex. Especially when markets become more volatile, IPOs can breakdown quickly and trade below their IPO price. Website: https://frankfunds.com Brian X Account: https://x.com/bfrankvalue Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You may obtain performance data current to the most recent month-end by calling the Fund at 1-888-217-5426 or visiting our website at www.frankfunds.com. Returns include reinvestment of any dividends and capital gain distributions. Non-FDIC insured. May lose value. No bank guarantee. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund, and it may be obtained by calling 1-888-217-5426. Please read it carefully before you invest or send money. This publication does not constitute an offer or solicitation of any transaction in any securities. Any recommendation contained herein may not be suitable for all investors. Information contained in this publication has been obtained from sources we believe to be reliable, but cannot be guaranteed. The information in this portfolio manager letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results or investment advice. Also, please note that any discussion of the Fund's holdings, the Fund's performance, and the portfolio managers' views are as of the date of this recording and are subject to change without notice.
Momentum stocks led by memory, declined significantly this week while value stocks appreciated. Investors are attempting to buy the dip with millions of new money piling into memory companies. Adding money to an overvalued stock is how investors can lose more than 100% on one investment. Momentum attempted to rally and it won't be the last time this cycle. What worked. The rotation from momentum to value accelerated this week. With earnings season picking up next week, fundamentals may entice more value investors. What didn't work. Stocks like Sandisk and Micron are 30%+ off their highs. Buying what has been working no longer works! On the Hunting Trail for Value When value stocks outperform it is more difficult to find new ideas. The declining momentum stocks have not declined enough to justify a value investment. Things are changing rapidly. Website: https://frankfunds.com Brian X Account: https://x.com/bfrankvalue Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You may obtain performance data current to the most recent month-end by calling the Fund at 1-888-217-5426 or visiting our website at www.frankfunds.com. Returns include reinvestment of any dividends and capital gain distributions. Non-FDIC insured. May lose value. No bank guarantee. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund, and it may be obtained by calling 1-888-217-5426. Please read it carefully before you invest or send money. This publication does not constitute an offer or solicitation of any transaction in any securities. Any recommendation contained herein may not be suitable for all investors. Information contained in this publication has been obtained from sources we believe to be reliable, but cannot be guaranteed. The information in this portfolio manager letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results or investment advice. Also, please note that any discussion of the Fund's holdings, the Fund's performance, and the portfolio managers' views are as of the date of this recording and are subject to change without notice.
This week SK Hynix raised $25 billion listing an ADR while momentum stocks were choppy. AI stocks struggle to make new highs as capital raises absorb liquidity. Value has the cashflow to support stock prices. What worked? Staying the course, focusing on fundamentals, and refusing to have FOMO. What didn't work? Traditional value investing continues to suffer. Instead, demanding a catalyst like an opportunistic stock repurchase has yielded better results over the past five years. On the Hunting Trail for Value Companies with 10% free cash flow to market cap yields are better able to reward shareholders than momentum stocks trading at 5x higher valuations. This difference compounds as high free cash flow companies return cash to shareholders and investors are able to reinvest. Website: www.frankfunds.com Brian X Account: https://x.com/bfrankvalue Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You may obtain performance data current to the most recent month-end by calling the Fund at 1-888-217-5426 or visiting our website at www.frankfunds.com. Returns include reinvestment of any dividends and capital gain distributions. Non-FDIC insured. May lose value. No bank guarantee. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund, and it may be obtained by calling 1-888-217-5426. Please read it carefully before you invest or send money. This publication does not constitute an offer or solicitation of any transaction in any securities. Any recommendation contained herein may not be suitable for all investors. Information contained in this publication has been obtained from sources we believe to be reliable, but cannot be guaranteed. The information in this portfolio manager letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results or investment advice. Also, please note that any discussion of the Fund's holdings, the Fund's performance, and the portfolio managers' views are as of the date of this recording and are subject to change without notice.
Anthropic IPO delayed and memory stocks tumble double digits. Meanwhile, value and low volatility stocks have a good week. This week we talk about the importance of process and fundamentals, especially during market volatility. Process tells you when to buy and sell, not the strength of the company's story. Learn the meaning behind the bouncer logo and how investors should operate their own velvet rope. On the Hunting Trail for Value talks about healthcare stocks with their favorable demographics and defensive nature. Website: www.frankfunds.com Brian X Account: https://x.com/bfrankvalue
The week ending June 27, 2026 had a tug-of-war between momentum stocks and value stocks. Brian thinks this is a topping process and the market is searching for new leaders. This leadership could come from value. What worked: Consumer Staples like Hershey (HSY), JM Smucker (SJM), and Edgewell Personal Care (EPC). What didn't work: Celsius Holdings (CELH). On the Hunting Trail: Alcohol companies are looking interesting, but investors should beware of using valuation metrics on businesses under pressure. Website: www.frankfunds.com Brian X Account: https://x.com/bfrankvalue
This week Brian discusses the positive reversal in Vistra Corp (NYSE: VST) and the case for Independent Power Producers. Next, although Consumer Staples like Hershey's (NYSE: HSY) have stock price weakness, the fundamentals are still strong. Finally, why investors should consider Consumer Staples as an offset to AI Infrastructure and Index positions.
This week we discuss the fundamental value in JM Smucker, NRG Energy, and Science Applications International. Brian walks through the case for value today in JM Smucker rather than value in the far future. NRG Energy has a rough ride as part of the AI Factor trade, even while analyst estimates are increasing. Finally, the investment case for defense contractors like SAIC.
This week Brian discusses the reversal in US tech stocks and outperformance of defensive sectors. He talks about process - should you buy the dip on a chart or hope for good news? Instead, value investors examine companies and let the fundamentals dictate buy and sell decisions. Learn more at www.frankfunds.com.
Hype and parabolic returns in semiconductor stocks is pulling capital from other, overlooked areas of the market. If you remember how the SPAC and SaaS manias in 2021 ended, now is a good time to look at defensive companies.