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  • 5 More Undervalued Companies For Enterprising Investors [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%

    APPLE Inc - Defensive Graham Ratings
    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: 380.88%

    COACH Inc - Defensive Graham Ratings
    Sales: 1,016.00%
    Assets / Liabilities: 143.31%
    Assets / Debt: 269,680.00%
    Earnings Stability: 100.00%
    Dividend Record: 25.00%
    Earnings Growth: 237.15%
    Graham Number / Price: 56.84%

    D.R HORTON Inc - Defensive Graham Ratings
    Sales: 1,252.00%
    Assets / Liabilities: 303.20%
    Assets / Debt: 185.59%
    Earnings Stability: 40.00%
    Dividend Record: 0.00%
    Earnings Growth: 29.73%
    Graham Number / Price: 88.74%
    NCAV Price: $9.29
    Previous Close: $23.48

    KLA-TENCOR CORP - Defensive Graham Ratings
    Sales: 568.00%
    Assets / Liabilities: 252.55%
    Assets / Debt: 466.95%
    Earnings Stability: 40.00%
    Dividend Record: 45.00%
    Earnings Growth: 170.82%
    Graham Number / Price: 55.75%
    NCAV Price: $15.39
    Previous Close: $69.14

    VIACOM Inc CLASS B - Defensive Graham Ratings
    Sales: 2,758.00%
    Assets / Liabilities: 88.73%
    Assets / Debt: 24.74%
    Earnings Stability: 80.00%
    Dividend Record: 20.00%
    Earnings Growth: 146.98%
    Graham Number / Price: 0.00%

    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: $92.08
    Quantitative Result: 100.00%

    COACH Inc passes Graham's Enterprising qualitative criteria.

    COACH Inc - Final Graham Assessment
    Defensive Price (Graham Number): $23.19
    Enterprising Price (Serenity Number): $16.94
    NCAV Price: $3.36
    Qualitative Result: Good / Enterprising
    Graham Price: $16.94
    Previous Close: $40.81
    Quantitative Result: 41.51%

    http://seekingalpha.co... lists all seventeen of the criteria Graham recommended in The Intelligent Investor, and gives step-by-step instructions on how to find stocks that meet them.
    Jun 18 11:28 AM | Likes Like |Link to Comment
  • What Would Benjamin Graham And John Neff Pay For Realty Income? [View article]
    Hello mbkelly75,

    Graham says in that interview that his recommendation was:
    "To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company."

    He was essentially referring to moving away from analyzing individual securities in extreme detail as taught in Security Analysis, to applying common criteria to all stocks as taught in The Intelligent Investor.

    The Graham analysis given above is based on those common criteria in The Intelligent Investor.

    He revised The Intelligent Investor for 25 years and wrote the last edition in 1973, just 3 years before he passed away.

    Thank you!
    Jun 18 10:29 AM | Likes Like |Link to Comment
  • What Would Benjamin Graham And John Neff Pay For Realty Income? [View article]
    Sarcasm noted, 7716391.

    It's not that stocks that don't clear the Graham criteria are bad investments.
    It's about finding the ones that will perform the best.

    The extreme selectivity of the Graham criteria is their biggest strength.
    That's also why the most successful investors are almost all Graham's students.

    Please see Warren Buffett's article "The Superinvestors of Graham-and-Doddsville" for a detailed explanation.
    http://bit.ly/TwFlS8

    Thanks!
    Jun 18 01:04 AM | Likes Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    Glad to be of help, tealone!

    Most professionals - doctors, lawyers, accountants etc - can be held accountable for their mistakes. But in finance - since stock markets are considered unpredictable and since the professionals are working with your money - they can take risks with it, lose it, and still get paid. This ability to take risks with no fear of loss to oneself is called Moral Hazard.

    You'd be surprised how many amateurs do admirably in investing, and how many professionals lose sight of the forest for the trees.

    Don't let your unfamiliarity with the field discourage you.
    Having less to disregard and unlearn could be your biggest advantage.
    Jun 17 03:14 PM | 3 Likes Like |Link to Comment
  • What Would Benjamin Graham And John Neff Pay For Realty Income? [View article]
    Hello AaronFunding,

    From the Graham perspective:
    Investment=Forest.
    REITs=Trees.

    Graham's 16 qualitative and quantitative criteria are specifically designed to be able to analyze any stock.

    Thanks!
    Jun 17 02:55 PM | Likes Like |Link to Comment
  • What Would Benjamin Graham And John Neff Pay For Realty Income? [View article]
    Thank you for your comment.

    The intent was not to dispute the validity of the conclusion drawn.
    The intent was only to demonstrate that the analysis wasn't done using Graham's methods (as the title implies), and how it could be done so.

    Also - according to Graham - if two investments have the same growth rates, stability and returns (qualitative and quantitative metrics), whether they derive from services or real estate is irrelevant.
    Jun 16 05:05 PM | Likes Like |Link to Comment
  • What Would Benjamin Graham And John Neff Pay For Realty Income? [View article]
    When attributing an analysis to Benjamin Graham, please apply the stock selection methods he recommended.

    Graham recommended three specific qualitative categories of stocks - Defensive, Enterprising and NCAV - and specific quantitative price calculations for each of them.

    http://seekingalpha.co... lists all sixteen of the qualitative and quantitative criteria in The Intelligent Investor, and gives instructions on how to find and analyze stocks with them.

    Given below are the inflation-adjusted Defensive Graham ratings for Realty Income Corporation (O).

    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%

    Realty Income Corporation - Defensive Graham ratings
    Sales: 155.68%
    Assets / Liabilities: 17.22%
    Assets / Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 70.19%
    Graham Number / Price: 49.99%

    Realty Income Corporation does not fully clear any complete set of Graham criteria.
    The details are given below.

    Realty Income Corporation - Final Graham Assessment
    Defensive Price (Graham Number): $21.92
    Enterprising Price (Serenity Number): $16.01
    NCAV Price: -$24.57
    Qualitative Result: OK / NCAV
    Graham Price: $0.00
    Previous Close: $43.85
    Quantitative Result: 0.00%
    Jun 15 04:29 PM | 4 Likes Like |Link to Comment
  • 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
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