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Strategies & Market Trends : Value Investing

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To: IndependentValue who wrote (52020)8/7/2013 5:48:53 PM
From: E_K_S  Read Replies (1) of 78611
 
IndependentValue-

I just discovered the Grurfocus.com interactive chart feature w/ a section that allows you to graph/calculate several different valuation models. Specifically I am a follower of the Graham Number (GN) and their "valuation" chart feature shows this valuation No. in a time series. Buy when the GN is below the current price (20% or more) then sell and/or peel off shares when it is equal or above the current price.

To use the feature, I believe you must register your email but is free for the basic service.

One of my successful Value Buys and Sells was ADM. I bought ADM last year (Nov 2012) when it traded below it's Tangible Book Value of $27.00/share. The calculated GN at the time was $35.00/share a 33% discount to the then current price of $26.25/share. I recently sold the shares at a multi year high of $37.25/share.

It does not always work out this well but using the GN value, I have found I can enter the trade with a pretty good risk/reward value buy.

Some of the other valuation models available in their interactive chart include:

Peter Lynch Fair Value
Graham Number
Enterprise value per share
Altman Z-Score
Beneish M-Score

I have verified that the Gurufocus interactive chart is mostly correct in it's calculation (at least for the Graham Number).

When I get stock ideas that fit my long term theme, I now go to the Gurufocus interactive chart to check out the valuation characteristics. A great tool since I would calculate myself from the ADVFN.com financial site. This is my other go to site for all the historical and financial stats.

Here is the link for ADM data. Notice the Visiual Financials link for the company. This is one of the only places where I can find 10 years of earnings which is critical when calculating a true Graham Number value.
goo.gl

Have fun. If you ever find a company selling 20% or more below it's GN value, please post. I think GLW is still one I own that is selling at a significant discount to it's GN value.

EKS
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