How To Build A Complete Benjamin Graham Portfolio [View article]
Thank you, Jeepbuddy97!
Graham's 16 criteria are designed to check all significant aspects of a stock, not just the price. So Graham's Margin of Safety of safety, in his own words, is designed to ensure:
"(1) a minimum of quality in the past performance and current financial position of the com- pany, and also (2) a minimum of quantity in terms of earnings and assets per dollar of price"
That was his description of the 8 criteria for finding defensive stocks. One of the biggest myths about Graham is that he only recommended cheap stocks. NCAV stocks were only the last grade of stocks he recommended.
What he actually taught (and practiced) was to find stocks selling for less than they were worth - both quantitatively and qualitatively.
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
Actually, if you see the "Legacy of Benjamin Graham" video, you can see Warren Buffett explaining how Graham went out of his way to avoid meeting CEOs and Managements. http://bit.ly/103PUg7
He wanted to develop theories and techniques of investment that any regular person could use and get similar results.
Buffett also gave a speech (in 1984) about how people have been saying for decades that things have changed, but how Graham's principles will always remain valid. http://bit.ly/TwFlS8
First principles rarely change with time.
For every action, there will still be an equal and opposite reaction. And to make money, one still has to first learn how to not lose it.
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.
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.
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%
9 Outperforming Dividend Stocks Undervalued By The Graham Number [View article]
To be checked against the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 4 other Defensive criteria.
Given below is an evaluation for the above stocks against each of Graham's defensive criteria:
6 Services Stocks Trading Near Highs Undervalued By Graham Number [View article]
Serenity's Graham Number screener lists nearly a 1000 NYSE and NASDAQ stocks selling under their Graham Number.
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 4 other Defensive criteria. Details: http://bit.ly/SW1fOc
SeaCube Container Leasing Ltd fails all 6 criteria. Gannett Co Inc meets the Sales and Dividend requirements but not the other 4. Southwest Airlines Co fails the Earnings growth, Liabilities and Debt criteria. PharMerica Corp fails the Earnings stability and the Dividend criteria. Royal Caribbean Cruises Ltd meets the Sales and Earnings stability requirements but not the other 4. Saia Inc meets the Sales requirement but not the other 5.
Graham's core philosophy is that the market operates more on emotion (sentiment) than reason. The market changes its evaluation of a stock several 100 times a year, sometimes drastically! But the inherent quality of a stock changes only once, or maybe twice, a year.
Graham taught that, by having an objective and detailed way to measure the inherent quality of a stock in its present state, one can identify when the market is behaving excessively irrationally (sentimentally) and take advantage of the situation.
This difference between the rational and the irrational, is called the margin of safety.
The trick is to be a step ahead, by doing a more detailed analysis than everyone else. If you have maintained a sufficient margin of safety, your diligence will pay off when the market eventually sees reason.
3 Oil And Gas Drilling Stocks Undervalued By The Graham Number [View article]
The Graham Number screener lists nearly 1000 NYSE and NASDAQ stocks selling under their Graham Number. Screener Link: http://bit.ly/RryASs
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 3 other Defensive criteria.
ATW and UNT don't have the earnings or the dividend history.
HP is a fully defensive stock. Serenity has already published this in multiple articles on seekingalpha - along with a number of other Defensive, Enterprising and NCAV grade stocks.
10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
How To Build A Complete Benjamin Graham Portfolio [View article]
Graham's 16 criteria are designed to check all significant aspects of a stock, not just the price.
So Graham's Margin of Safety of safety, in his own words, is designed to ensure:
"(1) a minimum of quality in the past performance and current financial position of the com- pany, and also (2) a minimum of quantity in terms of earnings and assets per dollar of price"
That was his description of the 8 criteria for finding defensive stocks.
One of the biggest myths about Graham is that he only recommended cheap stocks. NCAV stocks were only the last grade of stocks he recommended.
What he actually taught (and practiced) was to find stocks selling for less than they were worth - both quantitatively and qualitatively.
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
http://bit.ly/103PUg7
He wanted to develop theories and techniques of investment that any regular person could use and get similar results.
Buffett also gave a speech (in 1984) about how people have been saying for decades that things have changed, but how Graham's principles will always remain valid.
http://bit.ly/TwFlS8
First principles rarely change with time.
For every action, there will still be an equal and opposite reaction.
And to make money, one still has to first learn how to not lose it.
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]
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.
February's Quick Picks For The Benjamin Graham Defensive Investor [View article]
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.
Ben Graham's Stock Valuing Formula: It Really Works [View article]
9 Outperforming 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:
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%
Fidelity National Financial Inc
Sales: 111.00%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 30.00%
Dividend record: 35.00%
Earnings growth: 36.34%
Overall Defensive: 35.39%
Graham Number / Price: 132.18%
Huntsman Corp
Sales: 115.77%
Liabilities: 100.00%
Debt: 65.78%
Earnings stability: 10.00%
Dividend record: 25.00%
Earnings growth: 0.00%
Overall Defensive: 52.76%
Graham Number / Price: 112.82%
Kronos Worldwide
Sales: 106.04%
Liabilities: 100.00%
Debt: 100.00%
Earnings stability: 20.00%
Dividend record: 10.00%
Earnings growth: 60.03%
Overall Defensive: 66.01%
Graham Number / Price: 125.86%
Lexmark International Inc
Sales: 110.18%
Liabilities: 66.64%
Debt: 100.00%
Earnings stability: 100.00%
Dividend record: 5.00%
Earnings growth: 62.59%
Overall Defensive: 74.07%
Graham Number / Price: 114.57%
NL Industries Inc
Sales: 23.14%
Liabilities: 74.62%
Debt: 93.12%
Earnings stability: 20.00%
Dividend record: 70.00%
Earnings growth: 56.81%
Overall Defensive: 56.28%
Graham Number / Price: 128.17%
Susquehanna Bancshares
Sales: 101.30%
Liabilities: 0.00%
Debt: 0.00%
Earnings stability: 20.00%
Dividend record: 100.00%
Earnings growth: 12.09%
Overall Defensive: 38.90%
Graham Number / Price: 123.89%
Safeway Inc
Sales: 123.90%
Liabilities: 53.13%
Debt: 3.53%
Earnings stability: 20.00%
Dividend record: 35.00%
Earnings growth: 102.17%
Overall Defensive: 56.29%
Graham Number / Price: 120.31%
Washington Post Co
Sales: 110.23%
Liabilities: 70.61%
Debt: 82.27%
Earnings stability: 100.00%
Dividend record: 100.00%
Earnings growth: 78.24%
Overall Defensive: 90.23%
Graham Number / Price: 129.72%
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]
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 4 other Defensive criteria.
Details: http://bit.ly/SW1fOc
SeaCube Container Leasing Ltd fails all 6 criteria.
Gannett Co Inc meets the Sales and Dividend requirements but not the other 4.
Southwest Airlines Co fails the Earnings growth, Liabilities and Debt criteria.
PharMerica Corp fails the Earnings stability and the Dividend criteria.
Royal Caribbean Cruises Ltd meets the Sales and Earnings stability requirements but not the other 4.
Saia Inc meets the Sales requirement but not the other 5.
--
Serenity Stocks
Using The Graham Number Correctly [View article]
Graham's core philosophy is that the market operates more on emotion (sentiment) than reason. The market changes its evaluation of a stock several 100 times a year, sometimes drastically! But the inherent quality of a stock changes only once, or maybe twice, a year.
Graham taught that, by having an objective and detailed way to measure the inherent quality of a stock in its present state, one can identify when the market is behaving excessively irrationally (sentimentally) and take advantage of the situation.
This difference between the rational and the irrational, is called the margin of safety.
The trick is to be a step ahead, by doing a more detailed analysis than everyone else. If you have maintained a sufficient margin of safety, your diligence will pay off when the market eventually sees reason.
--
Serenity Stocks
3 Oil And Gas Drilling Stocks Undervalued By The Graham Number [View article]
Screener Link: http://bit.ly/RryASs
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 3 other Defensive criteria.
ATW and UNT don't have the earnings or the dividend history.
HP is a fully defensive stock. Serenity has already published this in multiple articles on seekingalpha - along with a number of other Defensive, Enterprising and NCAV grade stocks.
--
Serenity Stocks