Re: Bear Case Valuations --
Shown below is a list of companies that as of today are valued according to a bearish scenario. When analysts come up with valuations for a company, fair value is not a price point but a price range, and that range is determined by market conditions, business conditions, economic conditions, etc.
Since we are seeing inflation, rising interest rates, supply line disruptions, etc. rather than sit on cash and try to guess at a bottom, or guess when the market might turn favorable and stay that way, I choose to look at companies already priced for bearish conditions and I believe that is a good place to start building positions of size while price is down.
Not all of the selections are suitable for all investors, and just because they are valued to make this list, it is not a recommendation that they all be purchased. Each person must look into a company of interest and decide for themselves if the company is suitable for their portfolio, or if already owned, whether it's suitable to add or not.
I will list the bear scenario price point and then follow that up with a Morningstar fair value price point. The current price for these selections in most cases is below the stated price points making these companies selling at a discount to intrinsic value.
Company -- Bear Price -- M* FV
DHI .. $87.56 .. $107.00
AIG .. $64.74 .. $65.00
JPM .. $134.90 .. $149.00
MS .. $143.06 .. $96.00
BA .. $159.44 .. $233.00
BAC .. $42.30 .. $40.00
BMO .. $138.26 .. $115.00
BNS .. $68.14 .. $68.00
BTI .. $44.90 .. $50.00
CI .. $330.26 .. $299.00
CM .. $58.93 .. $60.00
CMCSA .. $45.94 .. $60.00
CVS .. $121.63 .. $108.00
PII .. $118.73 .. $175.00
RY .. $127.62 .. $110.00
SHEL .. $76.81 .. $62.00
SWKS .. $121.61 .. $180.00
SYF .. $36.51 .. $43.00
TD .. $78.20 .. $77.00
VFC .. $50.73 .. $66.00
These companies were holdings in several portfolios I have recently reviewed and that's where the list came from. The other holdings, many of which most of us own, have not met the bear case scenario with regard to value yet.
The current price should be below the prices listed above making these deep discount candidates for further review. |
