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Purple Chips
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John is the author of Purple Chips (published by John Wiley & Sons, 2012). John began his 28 year investment career as a floor trader in 1984 after completing a B.Comm (Finance) at Concordia University. John is also a Lead Judge for the John Molson International MBA Case Competition and now... More
My company:
Purple Chips
My blog:
Purple Chips
My book:
Purple Chips: Winning in the Stock Market with the Very Best of the Blue Chip Stocks
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  • $CSCO Hits Low Valuation

    PURPLE CHIPS MODEL DETECTS LOW VALUATION IN CISCO AT $USD 16.50 ($CSCO-US, $USD 16.40)

    1. Cisco is trading at the low end of its valuation range. Of particular interest is their large cash position of $46 billion, an enviable position for any company in a challenging environment (FYI, Apple has $100 billion).
    2. Attractive ROC of 20.6% and an earnings yield of 18.7%.
    3. Market Capitalization of $USD 88 billion and a dividend of 1.95%
    4. Purple Chips target is $USD 25.00 within 18 months. S&P rating is 3 stars, with a target of $USD 22.00.

    (click to enlarge)

    Disclosure: I am long CSCO.

    Jul 12 8:57 AM | Link | Comment!
  • Stryker $SYK Approaching Low Valuation

    • Stryker Corp (SYK, $USD $53.27) is approaching our low valuation target of $51.
    • Two comparative charts are presented below to establish the difference in valuation levels. Note how the EPS line is much lower than in Feb 2011 when the shares were at $63.26.
    • While Stryker has not yet hit the Low valuation in our model, it is a Top-25 US Purple Chip and is worth taking another look at.

    (click to enlarge)

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SYK over the next 72 hours.

    Tags: SYK
    Jul 03 7:50 AM | Link | Comment!
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