This Week's Activity – May 3, 2014:
On Friday, May 1, Jim Beam (BEAM) was bought
out by Suntory (STBFY) of Japan . This buyout was announced in January 2014 at
which time, Suntory offered a 25% premium to the price of BEAM the day
before. I wish I had bought BEAM on Jan.
18. Read more here: http://seekingalpha.com/article/1945041-beam-time-to-drink-after-a-great-offer
I maintain an archive of spreadsheets of
corporate buyouts so I can look for patterns in the financial data of the
companies that are bought out. My hope
is that I can someday find a pattern to apply going forward to help me find
these buyouts BEFORE they happen. So far
I am not recognizing any patterns.
Please feel free to suggest your thoughts on ways I can improve this
pattern search. Here is the link to the
Ultimate Stock Finder BuyOut Archive page:
http://www.ultimatestockfinder.com/stockevaluatorarchiveindex.html
Last week, Richard, one of our Investment Idea
Sharing friends asked me to add two fields to Stock Evaluator. Price/Free Cash Flow (P/FCF) and Shareholder
Yield. He found P/FCF at FinViz, so I
made the proper RCHGetTableCell command to put this value into Stock Evaluator.
Shareholder Yield is not directly readable
from any website that we could find.
Here is the definition:
"To calculate shareholder yield, go to
the Yahoo Finance Cash Flow statement. Look in the section labeled – Financing
Activities, Cash Flows Provided By or Used In. To calculate shareholder
yield, you have to determine the total amount of dividends that were paid to
shareholders (Dividends Paid), the net amount of stock that was repurchased
(Sale Purchase of Stock), and the net amount of debt that was reduced (Net
Borrowings). Before you get started, remember you are dealing with a cash flow
statement so cash outflows, such as dividends, are recorded as negative numbers.
Add Dividends Paid + Net Share Buybacks + Net
Debt Reduction. This value is called Returned Capital. Before you calculate Shareholder Yield, change
the sign of Returned Capital. Remember, we are dealing with the cash flow
statement so negative numbers are flows out of the company’s coffers to you. Shareholder Yield is Returned Capital divided
by Market Capitalization."
Here is an excellent article with more detail
about Shareholder Yield:
StockEvaluator.xls already contained Market
Cap., so all I had to do was make RCHGetTableCell formulas to look up the 3
Cash Flow values from Yahoo Finance.
While looking around at FinViz, I found the 14
Day Relative Strength Index value, RSI (14). Michael B. has been asking for
this data in Stock Evaluator, so I added it too.
These 3 new added fields are now in
StockEvaluator.xls in the following columns:
Price/Free
Cash Flow (P/FCF) in Col.
K
RSI
(14) in Col.
L
Shareholder
Yield in Col.
P
At this time, I am not including these 3 new data
values in the Red cell count. I have
added Target values in Columns C & D for each, but am only turning their
cells Yellow to show a warning when they do not meet their Target value. I track these 3 values for a few weeks to
determine the proper Target limit value for use adding them to the Red cell
count.
This week, the world market indices were mixed
with minor Up / Down movements except for the Brazil BOVESPA Index which was up
3.5%. Here is an article discussing this
week’s activities: http://www.bloomberg.com/news/2014-05-03/u-s-stocks-gain-for-week-as-dow-hits-record-on-earnings.html?cmpid=yhoo
Summary Table of Worldwide Market Index
Closing values for this week:
I still think the markets are overpriced but I
continue to look for good values on individual stocks of good solid
companies.
StockEvaluator ‘Short List’
‘Short List’ screens using 12 fundamental
value limits that I want to see in a stock before considering it as a possible
buy.
View our training video that shows how to
enter your preferred values for each of these ‘Short List’ screening limits:
View the ‘Short List’ screening criteria and
target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG
I also use FinViz stock screener as a parallel
check along with my ‘Short List’ to find good fundamental stocks that are near
their 52 Week Lows. Here is the FinViz
stock screener link set to the 9 out of 12 ‘Short List’ limits that are
available at FinViz.
This is in the FinViz ‘Custom’ view:
Next Monthly Meeting 2nd Tuesday of Each Month:
Tuesday, May 13, 2014, 7:30 PM at my
house.
Here are my Stock BUYs for This Week:
Stock Symbol:
Buy Date:
Buy Price:
Target Sell Price:
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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