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  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, alpine.

    Such an analysis would technically be classified under "Strategy 5: Special Situations or Workouts" mentioned in the earlier article "How To Build A Complete Benjamin Graham Portfolio".

    Some of the operations that Graham classified under this category are acquisitions of smaller firms by larger ones, arbitrage operations, the breakup of public-utility holding companies pursuant to legislation, issues that are involved in any sort of complicated legal proceedings and with prices beaten down to unduly low levels due to the ensuing prejudice, etc.

    But being able to identify and take advantage of a special situation as classified by Graham requires years of experience with Graham's more basic strategies. He did not recommend it for everyone.
    He wrote:

    "The exploitation of special situations is a technical branch of investment which requires a somewhat unusual mentality and equipment. Probably only a small percentage of our enterprising investors are likely to engage in it..."
    Jun 20 08:13 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, sgb104.

    Just as a matter of record, Buffett made the "The Superinvestors of Graham-and-Doddsville" speech in 1984.
    Jun 20 08:01 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    In short, Graham did not believe in complicated individual analyses, alpine.

    He advocated applying the same 16 criteria to the standard GAAP numbers of all stocks - regardless of industry, mergers, acquisitions, write-offs etc.
    Jun 20 03:06 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    That's actually a very interesting question, alpine.

    Answering it requires quoting from a classic Graham interview "An Hour With Mr. Graham" that can be found online. The Intelligent Investor marks a significant deviation to stock selection from Graham's earlier works such as Security Analysis which focussed on analyzing individual securities.

    He explained the change in paradigm in the 1976 interview thus:

    "The thing that I have been emphasizing in my own work for the last few years has been the group approach. 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"
    "I found the results were very good for 50 years. They certainly did twice as well as the Dow Jones. And so my enthusiasm has been transferred from the selective to the group approach."

    Also, in the "Legacy of Benjamin Graham" video released by the Heilbrunn Center for Graham and Dodd Investing, you can see Buffett explain that Graham was focussed on refining a method that ordinary investors, without specialized knowledge or access, could apply to achieve the same results as him.

    The Intelligent Investor (the source of the analysis in this article) is the embodiment of both these philosophies - generalized rather than specialized analysis, using an approach anyone can apply with publicly available information.
    Jun 20 02:27 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, Coaly1234.

    The intention of the article is only to convey that if an investor were to strictly follow Graham, there are stocks out there that deliver a little more by way of Earnings/Book value/History, for the same given investment.
    Jun 20 01:23 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, sgb104.

    Of course, there are many ways to evaluate a stock.
    This article is simply meant to demonstrate how Benjamin Graham would have.

    This is someone credited with training some of the world's top investors; someone Warren Buffett even named his son after.

    For more information on Graham's legacy, please see "The Superinvestors of Graham-and-Doddsville - A talk by Warren E. Buffett".
    Jun 20 12:49 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, Coaly1234.

    As mentioned at the end, as far as Graham's principles are concerned, Microsoft may remain at its current or even higher levels indefinitely.

    Graham simply recommended the prices at which stocks should be bought to avoid losses, and to consistently make profits.
    Jun 20 12:39 PM | Likes Like |Link to Comment
  • A Complete Benjamin Graham Analysis For Microsoft Corp. [View article]
    Thank you, Wanna.

    The actual Graham Number is derived from the Defensive criteria as shown here, and is very different from the NCAV calculation.

    A full Graham analysis requires checking against all 16 criteria shown here, including the 3 different price calculations - Defensive (Graham Number), Enterprising and NCAV.
    Jun 20 12:37 PM | Likes Like |Link to Comment
  • Tweaking Benjamin Graham's Stock Selection Criteria [View article]
    Hello ich1ban1,

    The 2nd and 3rd Ratings are actually - "Assets / Liabilities" and "Assets / Debt".

    So any stock with more than 100% "Assets / Debt" meets the Graham Defensive criterion and any stock with more 90% "Assets / Debt" meets the Graham Enterprising criterion.

    The Rating names on Serenity have been changed to be more self-evident.
    However the article still retains the old names.

    Hope this answers your question.
    Thank you!
    Jun 18 10:13 PM | Likes Like |Link to Comment
  • Waste Management, Inc. Dividend Stock Analysis [View article]
    Waste Management Inc has a Reported Book Value of $13.70, but a Tangible Book Value of only -$0.72, and so does not meet any of Graham's investment grade criteria.

    A percentage rating by each of Graham's Defensive criteria:
    Sales: 2,730.00%
    Liabilities: 39.89%
    Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 80.00%
    Earnings Growth: 82.76%
    Jun 17 08:31 AM | Likes Like |Link to Comment
  • Tweaking Benjamin Graham's Stock Selection Criteria [View article]
    Graham's criteria are generally quite restrictive, jimandsandymas.
    Only the best stocks clear them.

    But Rocky Brands Inc (RCKY), Jinpan International Ltd (JST) and
    Educational Development Corp (EDUC) also meet the customized criteria.

    They have been blanked out here because seekingalpha's policies do not allow inclusion of stocks with less than $100 Million in Market Capitalization.
    Jun 13 11:51 AM | Likes Like |Link to Comment
  • General Mills, Inc. Dividend Stock Analysis [View article]
    While General Mills Inc (GIS) does not have a tangible book value and thus does not fall within any of Graham's grades of investment worthy stocks, it does pass 4 of Graham's 7 criteria for defensive investment.

    A percentage rating for each of Graham's Defensive criteria for GIS.
    Sales: 3,332.00%
    Liabilities: 48.03%
    Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 143.25%
    Graham Number / Price: 0.00%

    Defensive Price (Graham Number): $0.00
    Enterprising Price: -$11.96
    NCAV Price: -$16.94
    Graham Grade: Ungraded
    Current Price: $48.08
    Jun 10 09:05 AM | Likes Like |Link to Comment
  • HollyFrontier: Time To Increase Exposure To This Cheap Refiner Again [View article]
    HollyFrontier Corp (HFC) is currently a fully defensive Graham stock.
    Defensive Price (Graham Number): $57.31
    Enterprising Price: $20.90
    NCAV Price: $0.95
    Graham Grade: Excellent / Defensive
    Current Price: $47.79

    A percentage rating for each of Graham's Defensive criteria.
    Sales: 4,018.00%
    Liabilities: 135.10%
    Debt: 210.73%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 516.03%
    Graham Number / Price: 119.92%
    Jun 9 08:32 AM | Likes Like |Link to Comment
  • HollyFrontier Refinery Glitches Mar Q4 [View article]
    HollyFrontier Corp (HFC) is now a fully defensive Graham stock.
    Defensive Price (Graham Number): $57.31
    Enterprising Price: $20.90
    NCAV Price: $0.95
    Graham Grade: Excellent / Defensive
    Current Price: $47.79

    A percentage rating for each of Graham's Defensive criteria.
    Sales: 4,018.00%
    Liabilities: 135.10%
    Debt: 210.73%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 516.03%
    Graham Number / Price: 119.92%

    See "How To Build A Complete Benjamin Graham Portfolio" for more information - http://seekingalpha.co...
    Jun 9 08:28 AM | Likes Like |Link to Comment
  • Why FPA Capital's Rodriguez Has 42% Of His Equity Positions In Energy Stocks [View article]
    Helmerich & Payne Inc (HP) is currently a fully defensive Graham stock.
    Defensive Price (Graham Number): $65.59
    Enterprising Price: $43.54
    NCAV Price: -$9.37
    Graham Grade: Excellent / Defensive
    Current Price: $62.55

    A percentage rating for each of Graham's Defensive criteria for HP.
    Sales: 630.00%
    Liabilities: 117.43%
    Debt: 263.63%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 493.40%
    Graham Number / Price: 104.86%

    See "How To Build A Complete Benjamin Graham Portfolio" for more information - http://seekingalpha.co...
    Jun 8 09:55 PM | Likes Like |Link to Comment
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