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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (46312)	1/24/2012 7:10:41 PM
From: E_K_S	Read Replies (1) \| Respond to of 78745

Hi Segio - For others who just want to review that list of stocks, here is a Yahoo link that provides the detailed view for each of the candidate stocks in the article. finance.yahoo.com The one other very important screen that I use is my modified Buffet rule: That is that the annual net income should be 4x or less than the company's total LT debt. I will let 5X go through but in these times, companies with a lot of LT debt is something I would rather not own. In fact, with such low interest rates (ie low cost of capital), many companies have been able to pay down their LT debt to more manageable levels. Therefore, I want to invest in those companies where the stock is selling at a discount to the calculated Graham No. AND at least 4x their net annual income is greater than or equal to the company's LT debt. From the list 5 companies meet this LT debt test: PRA, PRI, SYX, WRB & SRCE You also want to be sure BV is tangible BV and does not include any significant Goodwill, so adjust for that. I do notice that a few insurance companies make the list so I am not sure if these types of companies need any other special adjustments especially because of the potential liability in the policies they write (perhaps those are re-insured). Finally, I want companies that are selling near their lows rather than their highs. I still need to work through their list and then add those that look interesting to my GN watch list. My long term strategy is on any significant market correction, my filtered GN watch list will become my "Buy" list. In a fast market you will not have time to do your due diligence but will be pulling the trigger like a six shooter. EKS

To: Sergio H who wrote (46312)	1/24/2012 10:52:31 PM
From: Bocor	Respond to of 78745

delete

To: Sergio H who wrote (46312)	1/24/2012 10:53:28 PM
From: Bocor	Read Replies (3) \| Respond to of 78745

SRE will be one of the first 4 natural gas exporters via their Baja terminal conversion with cross-border pipeline infrastructure already in place.... seems to be a good, well run company liked by value line. Don't own it though, lol. Bought AVA this AM, but SRE is on my list on any further sell off, likely not tomorrow after the APPLE blowout. This AM the U.S. DOE authorized Cameron LNG, a subsidiary of SRE, to export LNG, encouraging U.S. natural gas companies to send their resources overseas. The export permit is only the third awarded in the U.S., and will allow the natural gas distributor to ship up to 1.7 bcf per day of LNG to countries possessing free-trade agreements with the U.S. Sempra has a large commitment to green energy that will hopefully ensure dividends into the future. Despite being at it's high, Sempra offers cheap price-to-earnings and price/earnings-to-growth ratios. Gross margin of 31.39% and operating margin of 17.26% are both better than its peers as well. With $802 million flowing into Sempra during 2010, this company has plenty of cash to pay out future dividends, and has a low payout ratio. I DO own MAIN, and so far have no complaints.