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  • Ignore The U.S. Economic Data And Look At 3 Small Caps Undervalued By The Graham Number [View article]
    To be checked against the Graham Number, Benjamin Graham required that a stock have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.

    First Bancorp Inc (FNLC) meets the criteria for Earnings Stability but not the other 5.
    Sales: 10.03%
    Liabilities: 0.00%
    Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 70.00%
    Earnings Growth: 75.95%
    Graham Number / Price: 109.20%

    Telenav Inc (TNAV) meets the criteria for Liabilities and Debt but not the other 4.
    Sales: 43.70%
    Liabilities: 338.46%
    Debt: 100.00%
    Earnings Stability: 50.00%
    Dividend Record: 0.00%
    Earnings Growth: 0.00%
    Graham Number / Price: 182.08%

    BankUnited Inc (BKU) meets the criteria for Sales but not the other 5.
    Sales: 137.37%
    Liabilities: 0.00%
    Debt: 0.00%
    Earnings Stability: 40.00%
    Dividend Record: 10.00%
    Earnings Growth: 0.00%
    Graham Number / Price: 118.47%
    Jun 4 09:12 AM | Likes Like |Link to Comment
  • Hedge Funds Are Buying These 3 Oil Stocks Undervalued By The Graham Number [View article]
    To be checked against the Graham Number, Benjamin Graham required that a stock have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.

    Swift Energy Co (SFY) meets the Sales criteria, but not the other 5.
    Sales: 111.46%
    Liabilities: 22.69%
    Debt: 0.00%
    Earnings Stability: 30.00%
    Dividend Record: 0.00%
    Earnings Growth: 30.46%
    Graham Number / Price: 119.10%

    Alon USA Energy Inc (ALJ) has a Tangible Book Value of only $6.97 (after excluding Goodwill and other Intangibles).
    That brings its actual Graham Number to $19.28.

    Thus Alon USA Energy Inc too only meets the Graham Defensive criteria for Sales and the Graham Number.
    Sales: 1,604.00%
    Liabilities: 60.34%
    Debt: 15.11%
    Earnings Stability: 20.00%
    Dividend Record: 35.00%
    Earnings Growth: 111.21%
    Graham Number / Price: 105.29%

    Delek US Holdings Inc (DK) meets all criteria other than Liabilities (68.05%), Earnings Stability (20.00%) and Dividend Record (7 years / 35%).
    Sales: 1,746.00%
    Liabilities: 68.05%
    Debt: 116.32%
    Earnings Stability: 20.00%
    Dividend Record: 35.00%
    Earnings Growth: 493.07%
    Graham Number / Price: 103.71%
    Jun 3 12:41 PM | Likes Like |Link to Comment
  • Would Benjamin Graham Like HollyFrontier? [View article]
    Thank you, Rupert.

    Graham recommended 3 different grades of stocks - Defensive (discussed here), Enterprising and NCAV - for investment, and 16 criteria in all for finding them.

    Serenity applies these 16 criteria to 4700 NYSE and NASDAQ stocks using more than 40 data points per individual stock.

    The data used, as well as the final Graham result, is displayed for each stock on Serenity.
    Jun 2 02:34 PM | 1 Like Like |Link to Comment
  • 10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
    Serenity's automated screeners currently list HollyFrontier Corp (HFC), Weis Markets Inc (WMK) and Helmerich & Payne Inc (HP) as stocks that completely clear all the above Defensive criteria specified by Graham.
    May 31 07:25 AM | Likes Like |Link to Comment
  • Would Benjamin Graham Like HollyFrontier? [View article]
    HollyFrontier Corp (HFC) has been paying uninterrupted dividends for dividends for the last 20 years (from 1994 to 2013).

    Serenity's automated screeners also currently list Weis Markets Inc (WMK) and Helmerich & Payne Inc (HP) as stocks that clear all the above Defensive criteria specified by Graham.
    May 31 07:20 AM | 3 Likes Like |Link to Comment
  • Why This Energy Stock Came In Second For My Portfolio [View article]
    Hello Michael Fitzsimmons,

    To invest in Phillips 66 (PSX), they would need to.
    Because PSX doesn't meet Graham's criteria for Defensive, Enterprising or NCAV investment (nor does COP).
    May 26 05:31 PM | Likes Like |Link to Comment
  • Why This Energy Stock Came In Second For My Portfolio [View article]
    To be checked against the Graham Number, Benjamin Graham required that a stock first have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.

    Phillips 66 (PSX) fails all criteria other than Sales.
    ConocoPhillips (COP) fails all criteria other than Sales and Dividend Record.

    Also, PSX has a Tangible Book Value of only $26.79 (after excluding Goodwill and other Intangibles).
    That brings its actual Graham Number to $62.45.
    May 26 01:29 PM | 1 Like Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Marathon Petroleum Corporation [View article]
    MRO does pass #3 and #4, but fails #5 as well.
    And MPC also fails #2-A as mentioned earlier.
    May 25 11:50 PM | Likes Like |Link to Comment
  • The Most Important Thing To Know If You're Using Stocks As Fixed Income [View article]
    Nice article!

    Graham provided the following definition - "An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

    Without dividends, there cannot be a "promise" of adequate return. One would be at the mercy of market corrections to see any ROI.
    (Except for buying NCAV stocks, where one effectively buys more cash for less cash)

    However, Corrections Corporation of America (CXW) and AT&T (T) don't meet Benjamin Graham's criteria for Defensive, Enterprising or NCAV investment.
    Garmin (GRMN) is not among the 4500 stocks analyzed automatically on Serenity for Graham's criteria.
    May 25 11:19 PM | Likes Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Oracle [View article]
    In later chapters, Graham gives more specific numbers for each of these Defensive stock criteria, the last two being:

    "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."

    Graham's recommended price for Defensive stocks can be calculated from criteria #6 and #7 as the square root of (22.5 x EPS x BVPS).
    This price is popularly known as the Graham number.

    ORCL fails the criteria for dividend records and is also selling much above its Graham Number.
    May 25 11:09 PM | 1 Like Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Marathon Petroleum Corporation [View article]
    In later chapters, Graham gives more specific numbers for each of these criteria.

    MPC fails criteria 2-A, 3, 4 and 5.

    Summarized from Chapter 14 of The Intelligent Investor - Stock Selection for the Defensive 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.
    May 25 11:04 PM | Likes Like |Link to Comment
  • Is This Miner Worth Its Weight In Gold? [View article]
    In later chapters, Graham gives more specific numbers for each of these criteria.

    Summarized from Chapter 14 of The Intelligent Investor - Stock Selection for the Defensive 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.
    May 25 10:58 PM | 2 Likes Like |Link to Comment
  • 10 Stocks Meeting Benjamin Graham's NCAV Criteria In May [View article]
    Thank you very much, alpha bet soup!

    However, do note that the $1,526.34 Million, $784.84 Million and 141.94 Million for XIN on Serenity's data feed also correspond exactly to the balance sheet figures on Google finance.

    Also FYI, the Book Value given here is the Tangible Book Value calculated by Serenity, not the reported Book Value which usually includes Goodwill and other Intangibles.
    May 14 09:54 PM | Likes Like |Link to Comment
  • 10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
    Update: Weis Markets Inc (WMK) now appears to be a fully defensive Graham stock.
    May 13 01:57 PM | Likes Like |Link to Comment
  • Verizon Communications Inc: Dividend Stock Analysis [View article]
    Given below is the result of the full 16-step Benjamin Graham analysis for Verizon Communications Inc:

    Defensive Price (Graham Number): $0.00
    Enterprising Price: -$31.34
    NCAV Price: -$59.76
    Graham Grade: Ungraded

    To be checked against the Graham Number, Benjamin Graham required that a stock first have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.

    Verizon Communications Inc fails all criteria other than Sales and Dividend Record.
    Sales: 23,170.00%
    Liabilities: 39.39%
    Debt: 0.00%
    Earnings Stability: 40.00%
    Dividend Record: 100.00%
    Earnings Growth: 23.74%
    May 3 08:10 AM | Likes Like |Link to Comment
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