Benjamin Graham's Advice For This Stock Market [View article]
Nicely said, Mercury Value!
But do note that in the two "Stock Selection" chapters, he does give some very specific rules for selecting stocks - 16 in all to be exact, for 3 different grades of stocks.
Benjamin Graham's Advice For This Stock Market [View article]
Mercury Value,
Never use the V = EPS x (8.5 + 2g) formula.
Graham was completely against any form of prediction or forecast (the 'g' here is the expected annual growth rate, remember?). He only uses this formula to show why such forecasts are never reliable.
See http://seekingalpha.co... for a screen shot of the original 1973 edition of The Intelligent Investor which has the warning and footnote about this formula.
Also, the Graham Number is derived from "companies that were selling at less than 15 p/e and 1.5 times book value" (22.5 = 1.5 * 15).
But again, 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. See http://seekingalpha.co... for details.
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
These were Graham's guidelines for a general portfolio policy for the defensive investor when it came to common stocks. He actually listed #3 here as #1 in the book.
A little later he writes "A criterion based on adjectives is always ambiguous. Where is the dividing line for size, for prominence, and for conservatism of financial structure?"
In chapter 14 "Stock Selection for the Defensive Investor" he gives much more specific values for all the defensive criteria.
Stick With Benjamin Graham's Advice And Never Touch An IPO [View article]
Graham's general recommendation on New Issues was to be unusually wary of them because:
1. New Issues have have special salesmanship behind them, which calls therefore for a special degree of sales resistance. 2. Most New Issues are sold under “favorable market conditions”— which means favorable for the seller and consequently less favorable for the buyer.
He said that they should be subjected to careful examination and unusually severe tests before they are purchased.
But he also said that it would be ill-advised to attempt any broad statements about New Issues as a class, since they cover the widest possible range of quality and attractiveness.
5 Stocks Currently Undervalued By Their Graham Number [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.
Ensco PLC fails the Liabilities, Debt and Dividend criteria. Reinsurance Group of America also fails the Liabilities, Debt and Dividend criteria. Vale SA also fails the Liabilities, Debt and Dividend criteria. Reliance Steel & Aluminum needs one more year of dividends to meet the Dividend criteria. Universal Corp fails the Earnings stability criteria.
Serenity has a full 40-point Benjamin Graham analysis for these stocks, classifying each stock into 3 different Graham grades with 3 different Graham prices.
3 Large Caps Undervalued By Earnings Growth And The Graham Number [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.
AFLAC Inc fails the Liabilities and Debt criteria. Chicago Mercantile Exchange fails the Liabilities, Debt and Dividend criteria. General Motors Company fails ALL criteria other than Sales and Debt growth.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
4 Outperforming Dividend Stocks Undervalued By The Graham Number [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.
Archer-Daniels-Midland Co fails the Liabilities criteria. Intl Bancshares Corp ALL criteria other than Sales and Earnings stability. Molson Coors Brewing Co fails the Liabilities and Debt criteria. Travelers Cos Inc also fails the Liabilities and Debt criteria.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
3 S&P 500 Dividend Stocks Undervalued By The Graham Number [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.
AFLAC Inc fails the Liabilities and Debt criteria. Humana Inc fails the Liabilities and Dividend criteria. Safeway Inc fails ALL criteria other than Sales and Earnings growth.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
4 Rallying Consumer Stocks Reporting Earnings Next Week Undervalued By The Graham Number [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.
Andersons Inc fails the Liabilities, Debt and Dividend criteria. Bunge Ltd fails the Liabilities and Dividend criteria. Graphic Packaging Holding Co fails ALL criteria other than Sales. Universal Corp fails the Earnings Stability criteria.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
5 Defensive Benjamin Graham-Type Dividend Stocks [View article]
Hello mweslowski,
Please note that the debt figure here is not a measure of the debt percentage of the company. It's an evaluation of how much the stock meets Graham's debt defensive criteria.
Graham said that for a defensive stock "Long-term debt should not exceed the net current assets."
For Occidental Petroleum (All figures in Millions USD) Current assets: 11909.00 Current liabilities: 7834.00 Long term debt: 7622.00
Since the net current assets are only about half the Long term debt, the debt defensive criteria only evaluates to 53.46%
For a true defensive Graham stock, all these criteria need to meet or exceed 100%.
9 S&P 500 Dividend Stocks Undervalued By The Graham Number [View article]
To be checked against the Graham Number, Benjamin Graham required that the stock have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.
Given below is an evaluation for the above stocks against each of Graham's defensive criteria:
7 Oversold Small And Mid Cap Stocks Undervalued By The Graham Number [View article]
To be checked against the Graham Number, Benjamin Graham required that the stock have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.
Given below is an evaluation for the above stocks against each of Graham's defensive criteria:
Apollo Group Inc Sales: 110.88% Liabilities: 58.55% Debt: 100.00% Earnings stability: 100.00% Dividend record: 0.00% Earnings growth: 101.04% Overall Defensive: 78.41% Graham Number / Price: 119.89%
Peabody Energy Corp Sales: 113.81% Liabilities: 74.16% Debt: 13.86% Earnings stability: 100.00% Dividend record: 55.00% Earnings growth: 101.30% Overall Defensive: 76.36% Graham Number / Price: 133.14%
Benjamin Graham's Advice For This Stock Market [View article]
But do note that in the two "Stock Selection" chapters, he does give some very specific rules for selecting stocks - 16 in all to be exact, for 3 different grades of stocks.
If you're interested, they're summarized here - http://seekingalpha.co...
Benjamin Graham's Advice For This Stock Market [View article]
Never use the V = EPS x (8.5 + 2g) formula.
Graham was completely against any form of prediction or forecast (the 'g' here is the expected annual growth rate, remember?).
He only uses this formula to show why such forecasts are never reliable.
See http://seekingalpha.co... for a screen shot of the original 1973 edition of The Intelligent Investor which has the warning and footnote about this formula.
Also, the Graham Number is derived from "companies that were selling at less than 15 p/e and 1.5 times book value" (22.5 = 1.5 * 15).
But again, 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. See http://seekingalpha.co... for details.
Benjamin Graham's Advice For This Stock Market [View article]
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
A little later he writes "A criterion based on adjectives is always ambiguous. Where is the dividing line for size, for prominence, and for conservatism of financial structure?"
In chapter 14 "Stock Selection for the Defensive Investor" he gives much more specific values for all the defensive criteria.
http://seekingalpha.co... has the details.
(Strategy #2)
Stick With Benjamin Graham's Advice And Never Touch An IPO [View article]
1. New Issues have have special salesmanship behind them, which calls therefore for a special degree of sales resistance.
2. Most New Issues are sold under “favorable market conditions”— which means favorable for the seller and consequently less favorable for the buyer.
He said that they should be subjected to careful examination and unusually severe tests before they are purchased.
But he also said that it would be ill-advised to attempt any broad statements about New Issues as a class, since they cover the widest possible range of quality and attractiveness.
5 Stocks Currently Undervalued By Their Graham Number [View article]
Ensco PLC fails the Liabilities, Debt and Dividend criteria.
Reinsurance Group of America also fails the Liabilities, Debt and Dividend criteria.
Vale SA also fails the Liabilities, Debt and Dividend criteria.
Reliance Steel & Aluminum needs one more year of dividends to meet the Dividend criteria.
Universal Corp fails the Earnings stability criteria.
Serenity has a full 40-point Benjamin Graham analysis for these stocks, classifying each stock into 3 different Graham grades with 3 different Graham prices.
3 Large Caps Undervalued By Earnings Growth And The Graham Number [View article]
AFLAC Inc fails the Liabilities and Debt criteria.
Chicago Mercantile Exchange fails the Liabilities, Debt and Dividend criteria.
General Motors Company fails ALL criteria other than Sales and Debt growth.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
4 Outperforming Dividend Stocks Undervalued By The Graham Number [View article]
Archer-Daniels-Midland Co fails the Liabilities criteria.
Intl Bancshares Corp ALL criteria other than Sales and Earnings stability.
Molson Coors Brewing Co fails the Liabilities and Debt criteria.
Travelers Cos Inc also fails the Liabilities and Debt criteria.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
3 S&P 500 Dividend Stocks Undervalued By The Graham Number [View article]
AFLAC Inc fails the Liabilities and Debt criteria.
Humana Inc fails the Liabilities and Dividend criteria.
Safeway Inc fails ALL criteria other than Sales and Earnings growth.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
February's Quick Picks For The Benjamin Graham Defensive Investor [View article]
4 Rallying Consumer Stocks Reporting Earnings Next Week Undervalued By The Graham Number [View article]
Andersons Inc fails the Liabilities, Debt and Dividend criteria.
Bunge Ltd fails the Liabilities and Dividend criteria.
Graphic Packaging Holding Co fails ALL criteria other than Sales.
Universal Corp fails the Earnings Stability criteria.
Serenity has a detailed 40-point Graham analysis for these stocks that classifies each stock into 3 different Graham grades with 3 different Graham prices.
5 Defensive Benjamin Graham-Type Dividend Stocks [View article]
Please note that the debt figure here is not a measure of the debt percentage of the company. It's an evaluation of how much the stock meets Graham's debt defensive criteria.
Graham said that for a defensive stock "Long-term debt should not exceed the net current assets."
For Occidental Petroleum (All figures in Millions USD)
Current assets: 11909.00
Current liabilities: 7834.00
Long term debt: 7622.00
Since the net current assets are only about half the Long term debt, the debt defensive criteria only evaluates to 53.46%
For a true defensive Graham stock, all these criteria need to meet or exceed 100%.
--
Serenity Stocks
9 S&P 500 Dividend Stocks Undervalued By The Graham Number [View article]
Given below is an evaluation for the above stocks against each of Graham's defensive criteria:
AFLAC Inc
Sales: 119.78%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 101.82%
Overall Defensive: 70.27%
Graham Number / Price: 127.29%
BB&T Corp
Sales: 115.10%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 49.28%
Overall Defensive: 60.73%
Graham Number / Price: 132.49%
Chubb Corp
Sales: 116.88%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 101.57%
Overall Defensive: 69.74%
Graham Number / Price: 120.02%
Chevron Corp
Sales: 135.30%
Liabilities: 81.95%
Debt: 100.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 103.07%
Overall Defensive: 103.39%
Graham Number / Price: 117.46%
Dell Inc
Sales: 126.11%
Liabilities: 58.83%
Debt: 72.52%
Earnings stability: 100.00%
Dividend record: 0.00%
Earnings growth: 91.33%
Overall Defensive: 74.80%
Graham Number / Price: 105.79%
Gartner Inc
Sales: 104.58%
Liabilities: 40.35%
Debt: 0.00%
Earnings stability: 60.00%
Dividend record: 0.00%
Earnings growth: 100.45%
Overall Defensive: 50.90%
Graham Number / Price: 18.85%
Kohl's Corp
Sales: 118.80%
Liabilities: 78.63%
Debt: 46.94%
Earnings stability: 100.00%
Dividend record: 5.00%
Earnings growth: 101.74%
Overall Defensive: 75.18%
Graham Number / Price: 112.40%
Marathon Petroleum Corp.
Sales: 127.62%
Liabilities: 75.32%
Debt: 100.00%
Earnings stability: 40.00%
Dividend record: 5.00%
Earnings growth: 0.00%
Overall Defensive: 57.99%
Graham Number / Price: 110.03%
Marathon Oil Corp
Sales: 117.57%
Liabilities: 29.76%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 101.63%
Overall Defensive: 74.83%
Graham Number / Price: 113.43%
SLM Corp
Sales: 111.97%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 30.00%
Dividend record: 5.00%
Earnings growth: 36.63%
Overall Defensive: 30.60%
Graham Number / Price: 135.18%
In short, only CVX is eligible to be checked against the Graham Number.
7 Oversold Small And Mid Cap Stocks Undervalued By The Graham Number [View article]
Given below is an evaluation for the above stocks against each of Graham's defensive criteria:
Apollo Group Inc
Sales: 110.88%
Liabilities: 58.55%
Debt: 100.00%
Earnings stability: 100.00%
Dividend record: 0.00%
Earnings growth: 101.04%
Overall Defensive: 78.41%
Graham Number / Price: 119.89%
Peabody Energy Corp
Sales: 113.81%
Liabilities: 74.16%
Debt: 13.86%
Earnings stability: 100.00%
Dividend record: 55.00%
Earnings growth: 101.30%
Overall Defensive: 76.36%
Graham Number / Price: 133.14%
Flagstar Bancorp Inc
Sales: 101.76%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 10.00%
Dividend record: 0.00%
Earnings growth: 0.00%
Overall Defensive: 18.63%
Graham Number / Price: 154.44%
Fred's Inc
Sales: 105.88%
Liabilities: 100.00%
Debt: 100.00%
Earnings stability: 100.00%
Dividend record: 95.00%
Earnings growth: 76.58%
Overall Defensive: 96.24%
Graham Number / Price: 118.20%
Kohl's Corp
Sales: 118.80%
Liabilities: 78.63%
Debt: 46.94%
Earnings stability: 100.00%
Dividend record: 5.00%
Earnings growth: 101.74%
Overall Defensive: 75.18%
Graham Number / Price: 112.40%
Pepco Holdings Inc
Sales: 112.13%
Liabilities: 37.12%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 58.06%
Overall Defensive: 67.88%
Graham Number / Price: 115.85%
In short, none of them are eligible to be checked against the Graham Number.
6 Services Stocks Trading Near Highs Undervalued By Graham Number [View article]
Saia Inc
Sales: 102.74%
Liabilities: 52.38%
Debt: 12.06%
Earnings stability: 20.00%
Dividend record: 0.00%
Earnings growth: 35.02%
Overall Defensive: 37.03%
Graham Number / Price: 98.92%
Royal Caribbean Cruises Ltd
Sales: 113.49%
Liabilities: 13.50%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 5.00%
Earnings growth: 72.40%
Overall Defensive: 50.73%
Graham Number / Price: 111.40%
PharMerica Corp
Sales: 106.41%
Liabilities: 100.00%
Debt: 100.00%
Earnings stability: 40.00%
Dividend record: 0.00%
Earnings growth: 100.62%
Overall Defensive: 74.51%
Graham Number / Price: 116.09%
Southwest Airlines Co
Sales: 117.72%
Liabilities: 46.81%
Debt: 0.00%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 95.63%
Overall Defensive: 76.69%
Graham Number / Price: 102.19%
Gannett Co Inc
Sales: 111.44%
Liabilities: 56.44%
Debt: 7.65%
Earnings stability: 30.00%
Dividend record: 100.00%
Earnings growth: 32.29%
Overall Defensive: 56.30%
Graham Number / Price: 104.06%
SeaCube Container Leasing Ltd
Sales: 28.25%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 20.00%
Dividend record: 10.00%
Earnings growth: 0.00%
Overall Defensive: 9.71%
Graham Number / Price: 109.36%
In short, none of them are eligible to be checked against the Graham Number.