Although I wouldn't put 25% in any stock, my safe pick is WRLD, a far from glamorous stock in a business that you probably don't want to brag about at your next cocktail party. Just my kind of stock ;>)
Tomorrow I will post my swing-for-the-fences stock, as it is thinly traded and I want to take a position first.
WRLD recently written up here:
Message 19618565
Here's my current Graham FV calculation, using FY05 consensus from two analysts of $1.69, up recently from $1.65. I also ratcheted back the estimated growth rate to 14% just to be slightly conservative:
Company: WRLD
Date: 1/1/04
Next year's expected earnings: $1.69
Estimated EPS growth rate: 14
P/E maximum for estimate: 14
Graham Fair Value: $49.97
Current Price: $19.89
$ difference: $30.08
Percent Growth to Fair Value: 151.23%
Other things I like about WRLD:
- nice chart. TA support is strong:
quotes.barchart.com
- mentioned by Dabum in Yahoo RIG board:
finance.messages.yahoo.com
- Valuation from ValuPro:
valuepro.net
- Yahoo shows two analysts following WRLD. Nice. finance.yahoo.com
- New sources of revenue: WRLD opened or acquired 33 new offices in FY03 and closed four nonperforming offices. The company plans to open or acquire at least 25 new offices in each of the next two fiscal years.
- Quicken gives an intrinsic value of $$33 vs. current price of $20, using 15% consensus growth:
finance.messages.yahoo.com
- and shows top ranking in NI, CF, ROE, ROA, ROIC, debt, PE, PS, and PEG:
quicken.com |
