Baseline equity research, all cap value, Long Only, Value
Contributor Since 2007
I manage Wax Ink, an equity research firm comprised of individual investors not licensed or registered with any government agency. I have been an all cap value investor and independent equity researcher for the past 30 years.
Texas (August 14, 2013) Wax Ink has issued a Negative Investment Interest opinion for Reynolds American, Inc. (NYSE: RAI) based on a recent baseline equity review which placed fair value between $23-$30.
The recent close of $50.3 is approximately 264% above the fair value buy target for the stock and approximately 77% above the fair value close target for the stock. The recent close is also 5% above analysts' twelve-month $48.00 median price target for the stock.
The recent close represents a 9% increase in the year over year price of the stock, while for the same period earnings increased 11%.
The stock currently has a trailing twelve-month PE Ratio of 17, and a PEG Ratio of 1.8 basis estimated forward earnings growth of 9.5%.
In the past 52 weeks, share prices have moved between a high of $52.93 and a low of $39.70, placing equilibrium at $47.56.
Basis the recent close, the stock is trading 5% below the 52 week high, 21% above the 52 week low, 5% below equilibrium, and has an average daily trading volume of approximately 1.8 million shares.
Reynolds American, Inc.through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States.
The company's listed competitors include Lorillard, Inc., Philip Morris USA, Inc., and Vector Group, Ltd..
Financial information that may be contained herein, is based on the company's most recent annual SEC filing for year ending December 31, 2012. All prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
For use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D.
Copyright © 2013 Wax Ink
Wax Ink is a baseline equity research company not licensed or registered with any government agency
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.