This is to Deeno and McSweet, thanks for sharing your idea on DGX.
You both make a pretty simple compelling case for it in the value sense.
I took a look at it this afternoon and on a valuation basis, FCF, FCF yield, EV, PB, some of my other stuff i look at (have written on it in the past) to get a feel for or a 'blend' of what this puppy is worth. There is hardly any red flags other than some pretty subpar revenue growth. I like that they are paying a dividend and buying back shares at such a reasonable valuation
I think i am going to pick up some shares, or maybe wait a few weeks for this thing to settle out.
As far as what is undervalued, i'm continuing to buy up gold miners. I think its a once in decade opportunity to buy some really cheap assets at huge discount. I have been meaning to write a post up and have been working on some valuations to throw together, but on the other hand the numbers are so bad that its hard to even make it look compelling. I'm hoping this nerve wrecking instinct that i am having to fight to avoid the whole group will pay off at some point. I have been building a position since late last year.
I currently own ABX, AU, AUY, GG, NEM, NG, RIC (hat tip EKS).
I own some Jan 16 $40 Calls in NEM (I like leaps - just picked them up this week for about .55)
I am pretty much done buying as of now as it is now close to 30% of my entire portfolio..
I wouldnt mind owning a few more smaller miners if someone could make the case for them.
There seems to be some interesting prospects in copper, potash, and other mining companies. I have been doing research but just not sure i'm ready to buy them. Currently looking at SQM and POT. This is my idea of value, just going after some stuff that is truly hated.
Matt |
