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  • 4 Elite Companies In The Spotlight This Week [View article]
    Given below are the inflation-adjusted Graham Defensive ratings for the above stocks.
    Defensive Graham investment requires all the ratings to be at least 100%.

    Enterprising Graham investment requires the ratings to be at least:
    Assets / Liabilities: 75%
    Assets / Debt: 90%
    Earnings Stability: 50%
    Dividend Record: 5%
    Graham Number / Price: 137%

    APPLE Inc
    Sales: 34,182.00%
    Assets / Liabilities: 83.93%
    Assets / Debt: 174.69%
    Earnings Stability: 100.00%
    Dividend Record: 10.00%
    Earnings Growth: 1,849.13%
    Graham Number / Price: 384.22%

    B&G FOODS Inc
    Sales: 144.99%
    Assets / Liabilities: 85.95%
    Assets / Debt: 9.00%
    Earnings Stability: 100.00%
    Dividend Record: 35.00%
    Earnings Growth: 241.93%
    Graham Number / Price: 0.00%

    CF INDUSTRIES HOLDING Inc
    Sales: 1,094.00%
    Assets / Liabilities: 158.76%
    Assets / Debt: 58.16%
    Earnings Stability: 80.00%
    Dividend Record: 45.00%
    Earnings Growth: 1,573.49%
    Graham Number / Price: 81.21%

    FreePORT-MCMORAN C & G
    Sales: 4,184.00%
    Assets / Liabilities: 104.46%
    Assets / Debt: 25.49%
    Earnings Stability: 50.00%
    Dividend Record: 20.00%
    Earnings Growth: 109.07%
    Graham Number / Price: 92.63%

    Of the above stocks, AAPL alone passes any complete set of Graham criteria.
    The details are given below.

    APPLE Inc - Final Graham Assessment
    Defensive Price (Graham Number): $350.71
    Enterprising Price (Serenity Number): $256.12
    NCAV Price: -$11.30
    Qualitative Result: Good / Enterprising
    Graham Price: $256.12
    Previous Close: $91.28
    Quantitative Result: 100.00%

    http://seekingalpha.co... lists all sixteen of the criteria Graham recommended in The Intelligent Investor, and gives step-by-step instructions on how to find stocks that meet them.
    Jun 15 03:22 PM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    Your appreciation truly means a lot, tealone.

    Finance is unique in its overwhelming information overload. The real challenge becomes knowing what to ignore - separating the wheat from the chaff.

    The timeless greatness of Graham's teachings lie as much in what he recommended, as in what he warned watching out for. Here are some general Do's and Don'ts based on them.

    Focus on:
    1. Safety
    2. Quality and Value
    3. Long term positions
    4. Research
    5. Pricing right (and not Timing right)
    6. Discount brokers (less commissions, no pressure to trade)
    7. Index funds (if you're too busy for stock research)

    Avoid:
    1. Risk/Speculation
    2. Tips/Trends/Forecasts
    3. Impulsive buying and Panic selling
    4. Popular stocks
    5. Excessive diversification
    6. Moral Hazard

    Hope this helps.
    Jun 13 02:20 PM | 2 Likes Like |Link to Comment
  • Deal Or No Deal: 6 Undervalued Dividend Stocks Trading Below Their Graham Number [View article]
    Glad to provide the additional information.

    Do note that once Goodwill and other Intangibles are excluded from the Book Values, as Graham recommended, two of these stocks have a Graham Number of Zero as shown above.

    Also, as mentioned, the Graham Number should not be used in isolation. Graham recommended 6 other Defensive criteria to be checked along with the Graham Number. And he gave separate sets of criteria for Enterprising and NCAV stocks.

    http://seekingalpha.co... lists all sixteen of the criteria Graham recommended in The Intelligent Investor, and gives step-by-step instructions on how to find stocks that meet them.
    Jun 12 11:32 PM | Likes Like |Link to Comment
  • Deal Or No Deal: 6 Undervalued Dividend Stocks Trading Below Their Graham Number [View article]
    The Graham-Number Stock Screener on Serenity lists 570 stocks selling under their Graham Numbers today.
    370 of them have paid dividends in the last one year.

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

    Given below are the inflation-adjusted Defensive Graham ratings for the above stocks.
    Defensive Graham investment requires all the ratings to be at least 100%.

    AGCO CORPORATION
    Sales: 2,158.00%
    Assets / Liabilities: 80.32%
    Assets / Debt: 181.68%
    Earnings Stability: 70.00%
    Dividend Record: 5.00%
    Earnings Growth: 285.91%
    Graham Number / Price: 100.51%

    BARNES GROUP Inc
    Sales: 218.00%
    Assets / Liabilities: 96.10%
    Assets / Debt: 56.48%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 220.85%
    Graham Number / Price: 0.00%

    DEAN FOODS CO.
    Sales: 1,804.00%
    Assets / Liabilities: 73.66%
    Assets / Debt: 41.22%
    Earnings Stability: 20.00%
    Dividend Record: 0.00%
    Earnings Growth: 68.65%
    Graham Number / Price: 90.03%

    ENTRAVISION COMMUNICATION
    Sales: 44.78%
    Assets / Liabilities: 158.26%
    Assets / Debt: 21.09%
    Earnings Stability: 20.00%
    Dividend Record: 15.00%
    Earnings Growth: 0.00%
    Graham Number / Price: 0.00%

    FEDERAL SIGNAL Corp
    Sales: 170.26%
    Assets / Liabilities: 100.11%
    Assets / Debt: 156.91%
    Earnings Stability: 20.00%
    Dividend Record: 0.00%
    Earnings Growth: 135.29%
    Graham Number / Price: 57.14%

    MEADWESTVACO CORP
    Sales: 1,078.00%
    Assets / Liabilities: 105.27%
    Assets / Debt: 100.00%
    Earnings Stability: 90.00%
    Dividend Record: 100.00%
    Earnings Growth: 275.98%
    Graham Number / Price: 97.46%
    Jun 12 01:16 PM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    To be checked against the Graham Number, Graham required that a stock also meet 6 other Defensive criteria, Profcannon. So the utility of using the Graham Number by itself is debatable.

    Also, do note that the standard assumption that lower EPS/BVPS/Graham Numbers are acceptable for "growth stocks" is antithetical to Graham's principles.
    In fact, for Enterprising investors looking for better results than Defensive investors, Graham actually required stocks to provide even more EPS and BVPS per dollar.
    Jun 12 10:46 AM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    It's the TBVPS times the EPS, Profcannon.

    Note that the P/E ratio is inversely proportional to the EPS. When one goes up, the other goes down (for a given price).

    So yes, lower PEs are better.
    And higher EPS values and higher BVPS values are preferable.
    Jun 12 10:23 AM | Likes Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    As far as Buffett's holdings go, wdjax0n:

    Most of Buffett's operations come under what Graham classified as "Special Situations", advanced investments not suitable for the ordinary investor. Buffett makes institutional deals with prices and benefits that most people cannot.
    Jun 11 10:00 AM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    Thank you, jlalbalos!
    If you have any questions, please don't hesitate to ask.

    The below article also shows how Graham's teachings are often wrongly interpreted. Please watch out for such oversimplified methods.
    http://seekingalpha.co...
    Jun 11 09:43 AM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    You're welcome, cbama12495!

    If you have any questions on how the Graham analysis and screening is done, please don't hesitate to ask.
    Jun 11 09:24 AM | Likes Like |Link to Comment
  • 6 Elite Companies In The Spotlight This Week [View article]
    Given below are the inflation-adjusted Graham Defensive ratings for the above stocks.
    For stocks with a positive NCAV, the NCAV and current price are also mentioned.

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least:
    Assets / Liabilities: 75%
    Assets / Debt: 90%
    Earnings Stability: 50%
    Dividend Record: 5%
    Graham Number / Price: 137%

    AFLAC Inc
    Sales: 4,788.00%
    Assets / Liabilities: 0.00%
    Assets / Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 157.16%
    Graham Number / Price: 107.83%

    INTUITIVE SURGICAL Inc
    Sales: 454.00%
    Assets / Liabilities: 253.66%
    Assets / Debt: 100.00%
    Earnings Stability: 100.00%
    Dividend Record: 0.00%
    Earnings Growth: 607.21%
    Graham Number / Price: 43.34%
    NCAV Price: $38.84
    Previous Close: $374.84

    NORFOLK SOUTHERN Corp
    Sales: 2,250.00%
    Assets / Liabilities: 66.70%
    Assets / Debt: 8.65%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 138.11%
    Graham Number / Price: 67.50%

    RALPH LAUREN CORPORATION
    Sales: 1,490.00%
    Assets / Liabilities: 171.60%
    Assets / Debt: 786.33%
    Earnings Stability: 100.00%
    Dividend Record: 55.00%
    Earnings Growth: 202.37%
    Graham Number / Price: 49.56%
    NCAV Price: $14.35
    Previous Close: $155.31

    TERADATA CORPORATION
    Sales: 538.00%
    Assets / Liabilities: 100.71%
    Assets / Debt: 317.34%
    Earnings Stability: 100.00%
    Dividend Record: 0.00%
    Earnings Growth: 173.94%
    Graham Number / Price: 31.40%
    NCAV Price: $2.03
    Previous Close: $43.23

    V.F. CORPORATION
    Sales: 2,284.00%
    Assets / Liabilities: 123.82%
    Assets / Debt: 162.25%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 168.89%
    Graham Number / Price: 18.50%
    Jun 10 04:22 PM | Likes Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    Thank you, Panphobia!

    As mentioned, the footnote was misplaced in newer editions and that probably led to the confusion.
    The warning is present in both old and new editions, but on the next page.

    However, a Graham valuation method with no mention of assets and based on a predictive "expected growth rate" should set off alarm bells for any student of Graham.
    Jun 10 03:41 PM | Likes Like |Link to Comment
  • 7 Defensive Investor Quick Picks For March [View article]
    Hello findrichard,

    That is exactly what Serenity's stock screeners do.

    Two entire chapters of The Intelligent Investor are dedicated to methods that Graham recommends for investors:

    1. Chapter 14: Stock Selection for the Defensive Investor, and
    2. Chapter 15: Stock Selection for the Enterprising Investor

    The sixteen criteria mentioned in those chapters are designed to verify all aspects of a stock before investment. http://seekingalpha.co... lists all sixteen criteria, and gives step-by-step instructions on how to find stocks that meet them.
    May 27 11:44 PM | 1 Like Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    Hello Jae Jun,

    As mentioned, Graham gives a footnote as well as a warning that such growth projections are unreliable. Even a stock with absolutely no tangible assets can clear this formula just by having a high "expected" growth rate.

    On the other hand, two entire chapters of The Intelligent Investor are dedicated to methods that Graham actually recommends for investors:

    1. Chapter 14: Stock Selection for the Defensive Investor, and
    2. Chapter 15: Stock Selection for the Enterprising Investor

    The sixteen criteria mentioned in those chapters are designed to verify all aspects of a stock before investment. http://seekingalpha.co... lists all sixteen criteria, and gives step-by-step instructions on how to find stocks that meet them.

    Thank you for your comment.
    May 26 01:02 AM | Likes Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    Thank you for that very informative comment, ArtfulDodger!

    NCAV stocks are Graham's most popular investment model, and possibly the reason for the common belief that he only recommended cheap stocks. But Graham actually recommended Defensive and Enterprising stocks before NCAV stocks and both were allowed higher quantitative evaluations and required greater qualitative checks. Graham did advocate paying more for quality. His only prerequisite was that there be the margin of safety between price and value, whether the value be qualitative or quantitative.

    In fact, the last of the Graham strategies mentioned in http://seekingalpha.co... is "Special Situations", which is precisely the type of investment you speak of. But he did not recommend it for the ordinary investor as it supposedly required a high degree of skill, experience and resources. As Buffett said, Graham was more focussed on developing an investment model with which the ordinary investor - with his ordinary resources - could use to get results similar to his own.

    But Buffett being Buffett has the skill, experience and resources; and yes, almost all his investments do fall in Graham's "Special Situations" category.

    Thank you again for a very informative comment!
    May 23 09:52 PM | Likes Like |Link to Comment
  • Joel Greenblatt Is A Modern-Day Benjamin Graham [View article]
    Thank you, Nat Hunt.
    May 23 05:18 AM | Likes Like |Link to Comment
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