This Week's Activity – March 22, 2014:
On Wednesday, I bought China Mobile
(CHL). For the past several weeks, It
has been on the Stock Evaluator ‘Short List’ along with the two other big
Chinese phone companies (CHA, CHU ). I bought CHL at $44.50 which was a new 3 year
low. Then on Thursday CHL dropped a 3%
due to reporting lower earnings. Friday
was another 3% drop. It is now at $41.55. If it goes to $40, I will buy more. Current dividend is 4.3%
Here is an article from last week discussing
the new Value Added Tax that China
Here is the article explaining Thursday’s
price drop for CHL.
Another article explaining the big picture on
Telecom in China
This week, the world market indices were flat.
Read more here: http://www.thestreet.com/story/1555076/1/whiplash-sp-veers-to-all-time-high-before-crashing.html?puc=yahoo&cm_ven=YAHOO
I still think the markets are overpriced but I
continue to look for good values on individual stocks of good solid
companies.
Two vary famous long term value investors are
Warren Buffett (Berkshire Hathaway BRK-A) and Carl Icahn (Icahn Enterprises
IEP). They have very different
approaches to how they get along with the companies they buy into. Buffett likes to have a friendly advice
giving role while working with the CEO and board of directors, while Icahn
prefers a more adversarial approach and often forces elections to gain him
seats for his friends on the board of directors of many companies to force
sweeping changes including sometimes a new CEO.
Both men also have a different approach to how
they handle the debt for their two companies.
Icahn (IEP) has so much Debt to Equity and
Goodwill to Equity that his company has negative Net Tangible assets of -$3
Billion on Revenues of $21 Billion, while at the same time paying a 5.7%
dividend. Icahn is playing fast and
loose with other peoples money.
Compare with Buffett (BRK-A) Goodwill to
Equity of 30% and Debt to Equity of 107% which leads to a Net Tangible Assets
of $164 Billion on Revenues of $182 Billion, but pays out no dividend. Buffett is reinvesting his own money in his
company.
Yahoo Finance Key Statistics and Balance
Sheets for:
Summary Table of Worldwide Market Index
Closing values for this week:
Due to continued problems with our Stock Market web look-up
functions, we still cannot update the data in Stock Evaluator.xls and Mutual
Fund Evaluator.xls. We are working to
fix this problem and hope to have a fix in place soon.
In the mean time, I have been trying other web
stock screeners and I really like the one by FinViz. It allows me to enter most of the same
criteria and limits that I use to make the Stock Evaluator ‘Short List’. FinViz provides several different screen views
of key types of values for the stocks that meet your screen criteria limits (Valuation,
Financial, Performance, Technical, etc.)
The screen view I like best is the ‘Custom’
screen that lets me select the exact data fields I want to see when FinViz
displays the stocks that meet my criteria limits.
Click ‘Settings’ at the upper right of the
table if you want to change which fields are displayed in this ‘Custom’ view.
Click ‘Filters’ if you want to change any of
my criteria screening limits.
Here is the link to FinViz stock screener set
to my ‘Short List’ criteria, and displaying them in ‘Custom’ view: http://finviz.com/screener.ashx?v=151&f=fa_debteq_u0.8,fa_div_o1,fa_ltdebteq_u0.8,fa_netmargin_pos,fa_payoutratio_u70,fa_pb_u2,fa_pe_u20,fa_ps_u2,fa_salesqoq_pos,ta_highlow52w_a0to5h&ft=4&o=low52w
FinViz does not provide the ‘Row-by-Row’
comparison capability that we have in StockEvaluator spreadsheet. FinViz also does not provide the ‘Goodwill to
Equity’ value.
Next Monthly Meeting 2nd Tuesday of Each Month:
Tuesday, April 8, 2014, 7:30 PM at my
house.
Here are my Stock BUYs for This Week:
Stock Symbol: CHL
Buy Date:
3/19/2014
Buy Price: $44.50
Target Sell Price: $60 (hold due to good
dividend of 4.4%)
Stock Symbol: EZPW
Buy Date:
3/21/2014
Buy Price:
$12.50
(This was due to a PUT Option I sold in
November 2013 for $1.30 at Strike of $12.50.
On
3/21/2014, EZPW was selling for $12.23, so I got it PUT to me at $12.50.
On
Monday, I will place an order to sell a $12.50 September CALL for $2.00)
Target Sell Price: $14.50
Here are my Stock SELLs for This Week:
Stock Symbol:
Sell Date:
Sell Price:
Buy Price:
Buy Date:
Here are my Mutual Fund BUYs for This Week:
Fund Symbol:
Buy Date:
Buy Price:
Target Sell Price:
Here are my Option (CALL or PUT) Sells/Buys for This Week:
Option:
Stock Symbol:
Sell to Open Date:
Expiration Date:
Strike Price:
Option Price:
Visit www.ultimatestockfinder.com to
download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read
training articles and check out all our web links for investing information.
Please remember to send me any other
investing ideas, information or questions that you want to share with the group.
Thanks,
John D.
Disclosure: The author has no positions in any of the
stocks or mutual funds mentioned in this article unless clearly stated above. We
certify that except as cited herein, this is our work product. We received no compensation
or other inducement from any party to produce this article. Please see our full legal disclaimer at: http://www.ultimatestockfinder.com/stockevaluator_disclaimer.html
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