MagicDiligence

Using the Magic Formula With Dividend Stocks

Every time in the past someone has said "we're going through a fundamental change", they've been wrong. It was said during the tech boom. It was said in the late 80's when Japan was booming. It was said in the 70's after 7 years of stagflation. It was certainly said in the 1930's. And guess what? Value investing has always been a winner. Don't be fooled by the gushing talking heads. Buying cheap and selling dear will ALWAYS work.

Sherwin-Williams' Surprising Beat

Good commentary Todd. I concur with the surprise at how minor the revenue decline was domestically. I suppose it's easier for homeowners to paint the deck or a couple rooms instead of spending big bucks on remodeling and such. Sherwin's stock really feels like a coil that's been pushed down by litigation and housing fears. It was due for the big bump yesterday, and still at least 30% undervalued.

Steve
magicdiligence.com

How Low Will Sherwin-Williams Go?

Dow is probably not interested in getting into the retail business. Most of Sherwin's revenues come from their 3,000+ outlets, not from third parties. I'm not as familar with Dow, but likely it's the exact opposite for them. Dow can probably expand their coatings businesses with somebody a lot cheaper and better fitting their business strategy than SHW.

Steve
magicdiligence.com