Stock/Investing

[TheDude]

Im in the markets so in a bit more technicals here. Overall Im in risk area so I have a bias toward things not being great and we are due a recession after 8 years of "recovery".

If you buy into Brexit as the start of a prolonged risk-off, gold is good as dollar devalues. Japan will be looking to weaken the yen so YCS (short Yen ETF). 10 year and 30 Treasuries are ALL TIME lows, but that doesnt mean you cant see further rally with 8 of 9 European sovereigns at negative rates through the belly of the curve as well. Assuming no Italy exit or contagion, TBTs will be a good play in a month or so.

Banking stocks are going to be a difficult play as NIM compression continues as spreads compress and mortgage rates trend a bit lower.. I love WFC the most due to the less global dependence.

Technology will continue to be a play - Amazon, google should be solid

It's difficult to call specific companies, but pay attention to leverage the are using

You should look at the indices on big dips.

 

[honyock]

I've been changing my investing approach the past year or so after reading Benjamin Grahams "The Intelligent Investor". He was more or less the patron guru of value investing, and Buffett trained with him. It's led me to caring much more about finding companies that are both solid businesses with a track record of stability and good financials, and who are for one reason or another undervalued by the market at the moment. I've been using his criteria and approach more this year and it's been a good year because of it.

I just added to positions in Mosaic (MOS, a potash producer in the fertilizer business), Houston Wire & Cable (HWCC, supplier of just what the name sounds like, and very sensitive to copper prices), and started a position in Ford a short time ago.

Tobacco - all I own is Universal Corp, a tobacco leaf buyer/processor. They're too rich right now for me to add more.

Energy - Own Helmerich & Payne (HP) and Tesco (TESO), both oil field suppliers. Tesco is at what for me is a pretty attractive price right now and I may add more. Also HollyFrontier (HFC), a refinery, which is at an attractive price but refiners can be not for the faint of heart. I like NOV but would only buy it at a lower price.

Healthcare: Gilead, Amgen and Pfizer, Gilead is priced nicely but I own too much already. If Pfizer dips, I'd like to buy more.

Tech: Apple (Should be a good price for the long term, but I already own too much), Cisco and Qualcomm. I plan to keep adding to those two.

There are several others, Industrials & Materials, that I like and have on my watchlist, but they've had big runups since the February lows so a little too pricey for me right now.

 

[Rockport]

Im in the markets so in a bit more technicals here. Overall Im in risk area so I have a bias toward things not being great and we are due a recession after 8 years of "recovery".

If you buy into Brexit as the start of a prolonged risk-off, gold is good as dollar devalues. Japan will be looking to weaken the yen so YCS (short Yen ETF). 10 year and 30 Treasuries are ALL TIME lows, but that doesnt mean you cant see further rally with 8 of 9 European sovereigns at negative rates through the belly of the curve as well. Assuming no Italy exit or contagion, TBTs will be a good play in a month or so.

Banking stocks are going to be a difficult play as NIM compression continues as spreads compress and mortgage rates trend a bit lower.. I love WFC the most due to the less global dependence.

Technology will continue to be a play - Amazon, google should be solid

It's difficult to call specific companies, but pay attention to leverage the are using

You should look at the indices on big dips.

Feel good?

 

[CyberB0b]

I've been changing my investing approach the past year or so after reading Benjamin Grahams "The Intelligent Investor". He was more or less the patron guru of value investing, and Buffett trained with him. It's led me to caring much more about finding companies that are both solid businesses with a track record of stability and good financials, and who are for one reason or another undervalued by the market at the moment. I've been using his criteria and approach more this year and it's been a good year because of it.

I just added to positions in Mosaic (MOS, a potash producer in the fertilizer business), Houston Wire & Cable (HWCC, supplier of just what the name sounds like, and very sensitive to copper prices), and started a position in Ford a short time ago.

Tobacco - all I own is Universal Corp, a tobacco leaf buyer/processor. They're too rich right now for me to add more.

Energy - Own Helmerich & Payne (HP) and Tesco (TESO), both oil field suppliers. Tesco is at what for me is a pretty attractive price right now and I may add more. Also HollyFrontier (HFC), a refinery, which is at an attractive price but refiners can be not for the faint of heart. I like NOV but would only buy it at a lower price.

Healthcare: Gilead, Amgen and Pfizer, Gilead is priced nicely but I own too much already. If Pfizer dips, I'd like to buy more.

Tech: Apple (Should be a good price for the long term, but I already own too much), Cisco and Qualcomm. I plan to keep adding to those two.

There are several others, Industrials & Materials, that I like and have on my watchlist, but they've had big runups since the February lows so a little too pricey for me right now.

What are some of the metrics Graham uses to measure value?

 

[TheDude]

Feel good?

about what?

 

[honyock]

What are some of the metrics Graham uses to measure value?

He had slightly different criteria depending on how cautious vs aggressive an investor you are. (For those who don't want to mess with stock picking he just recommended a good index fund.) Here is his basic criteria for the most conservative level of investor:

1. Not less than $100 million of annual sales.
[Note: This works out to $500 million today based on the difference in CPI/Inflation from 1973]
2-A. Current assets should be at least twice current liabilities.
2-B. Long-term debt should not exceed the net current assets.
3. Some earnings for the common stock in each of the past 10 years.
4. Uninterrupted [dividend] payments for at least the past 20 years.
5. A minimum increase of at least one-third in per-share earnings in the past 10 years.
6. Current price should not be more than 15 times average earnings.
7. Current price should not be more than 1-1⁄2 times the book value.
As a rule of thumb, we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5.

He used #6 and #7 combined for his formula for a price that he thought was fair value.

Fortunately there are screeners out there to do the number crunching for you. No way would I be able to pull that off myself.

 

[YosemiteSam]

You guys trying to invest.

https://lh3.***BROKEN***/-d9-pgoCKgI4/V4EwDr1BzsI/AAAAAAADH64/U9hRY4kEpuIeYbXzzzIJxmHV3CBrU1b1A/s426/aa933f62-6972-40e5-aea4-8e6ffd715537

 

[SilverStarCowboy]

Can't miss on Real Estate and Land Ownership.