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The Ethical Investor

 
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  • Johnson & Johnson - Avoid This Safety Stock [View article]
    I agree with you. The company is a well run. Most of the stocks I analyze have to pass the "well run" test. Once I am sure that the business can be a legitimate going concern, I take it up for valuation to determine if it is worth owning at current levels. A stock can be a great company, but a lousy investment if you overpay for it. Thanks for your comment.
    Jun 4 03:30 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    My age and investment horizon should not matter to you. Looking at my projections, if you agree with them, you should be able to make up your mind whether you are OK holding the stock or selling it. Caveats are implied.
    Jun 4 03:27 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    I concur, JNJ is not an obvious short. There are several other opportunities available. My article was more about booking some profits here and not adding to/opening new position at current levels.
    Jun 4 03:24 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    I agree. It boils down to philosophy. And yes, JNJ is part of a basket of stocks I would sell at current levels.
    Jun 4 03:23 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    The trailing P/E is of no consequence to me as I have performed absolute valuation. My sell rating is not based earnings multiple
    Jun 3 08:38 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    I understand your position. Your investment objectives are very different from mine. In my situation as a person 30 years away from retirement, I would take some money off the table and wait for a pullback to buy more.
    Jun 3 08:35 AM | 1 Like Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    the forward P/E is a fair point to make. But when the whole market is expensive (which I think it is), relative valuation is not the best valuation technique in my opinion. The growth rates that I have assumed account for the drugs in the pipeline. Without those drugs, I would have assumed a declining growth rate in real terms.
    Jun 3 08:33 AM | Likes Like |Link to Comment
  • Johnson & Johnson - Avoid This Safety Stock [View article]
    JNJ might appear like a great opportunity to you, but from I stand, it appears overvalued. This is my personal opinion which I am just sharing with the rest of the community. Thank you for your constructive criticism.
    Jun 3 08:31 AM | Likes Like |Link to Comment
  • Cisco Systems: Capital Gains And Dividend Increase Opportunity [View article]
    Thanks for bringing it to my attention. The error has been fixed.
    Sep 10 11:39 AM | Likes Like |Link to Comment
  • Cramer's Picks - 1 To Buy, 1 To Hold, 1 To Sell [View article]
    This is strictly a quantitative analysis. The growth forecasts are based on average analyst estimates. CLF is expected to increase its EPS by 27% this year followed by flat earnings growth. If you think that the estimates are incorrect, you can change the future EPS forecasts and apply a suitable P/E. You can always refer to my discount rate if you so desire.

    Thanks,
    May 10 04:15 PM | Likes Like |Link to Comment
  • 4 Recent Cramer Stock Picks To Avoid [View article]
    I agree. Equity and capitalization are two very different things. I have already asked the editors to fix the issue.

    The Lt D/E for SE is correct. Lt Debt of 10,146 and equity of 8,323 gives you approximately 122%. In any case, those numbers do not have a meaningful impact to the valuation. Plus, you can always adjust the model to your liking by changing the inputs used. The analysis is very transparent.
    Mar 18 08:07 PM | Likes Like |Link to Comment
  • 4 Recent Cramer Stock Picks To Avoid [View article]
    Yes, the stock is up 118% over last yr. That is a typing error.
    I apologize.
    Mar 18 04:29 PM | Likes Like |Link to Comment
  • 4 Recent Cramer Stock Picks To Avoid [View article]
    The d/e ratio used is the long term debt to equity. I do not use cash as a negative debt.
    Mar 17 11:03 PM | Likes Like |Link to Comment
  • Apple: A Residual Income-Based Valuation [View article]
    Thank you for the compliment. I was waiting for the $475 levels. I doubt the stock will get there though.
    Mar 17 01:51 AM | Likes Like |Link to Comment
  • This Stock Is Overvalued By 43% [View article]
    Thanks Finian for the reply. I used to hold a similar view which is why I was long AIXG till a few hours ago. For the company to be a profitable investment, the EPS will have to rise back to $1.89 (2010 levels). Based on the projected growth rates, I really do not see that happening anytime soon. I think there are better opportunities elsewhere to make money.
    Mar 15 01:01 PM | Likes Like |Link to Comment
COMMENTS STATS
106 Comments
72 Likes