 I always have a running list of great companies I would buy if they were priced a whole lot differently- my wish list you might say. Being value investors we all spend a lot of time trying to differentiate between garbage and gold. Usually when I am looking at a company it has hit my screens because it is suddenly cheap – my job is to find out if there is a good reason or a bad reason for this, and invest accordingly. This activity can take some time, days, sometimes even weeks. Some opportunities simply don’t last that long though, they can dry up in a matter of a day, an hour or even mere minutes.
Read More...
|
 If you are fortunate enough to have a few extra dollars at the end of the month after paying your mortgage what should you do?
Sample Mortgage Details
- 5.25%
- 25 year amortization
- $400,000 loan
- loan payments of around $2400
- our user has an extra $600 every month in free cash.
Option 1: Put the money into a dividend paying stock
In this scenario the user decides to pay the mortgage for the full 25 years and invest the extra $600 directly into a dividend paying stock. Our user finds a stock with an dividend yield of 6%, once the appreciation in the stock’s value is included the return amounts to 7.25%.
Read More...
|
 Originally published on: Div-Net
After much searching I found a stock screener for Canadian stocks (more on this in another post). I was able to assemble a Graham style screener with the following criteria:
Read More...
- Exchange TSX
- P/E less than 15
- Dividend Yield > 3.5
- Average EPS > 33%
- Revenue > $550M
- Current Ratio > 2
- Price/Book Ratio less than 1.5
|
 I did a search and could not for the life of me find a link to a prebuilt Google screener for Graham’s value investing system. So lets quickly build one:
Through the Graham series we said we would only consider companies that:
Read More...
- Had a P/E of less than or equal to 15.
- A book value of greater than or equal to 0.01.
- A price to book value of less than or equal to 1.5.
- A current ratio of more than or equal to 2.
- Earnings Per Share Growth rate on average of greater than or equal to 33% over 10 years.
|
Every day I pull a list of the insider traders then I shorten the list to be only buys done by roles that have a proven track record (see my previous post for a little on this). Finally I run an evaluation of the companies based on some of the ratios that Graham used to find companies that are cheap (See my earlier series on this).
This is just the start for me though after a company reaches this level it is worthy enough for me to look at it further not necessarily.
Read More...
|
What I paid for it
$18.00
Read More...
What I like about it:
- Fair insulation from credit problems, and recession.
- Good dividend yield at 4.1% (distribution Dec 1).
- Company due to be purchased at $30 pending one final approval (this is the big one).
What I don’t like about it:
- P/E higher than industry, sector, and S&P.
- Price to Sales higher than industry, sector, and S&P.
- Doesn’t really meet any of my traditional Graham investing rules.
- One should never buy into litigation.
|
| |
|
