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


To: OldAIMGuy who wrote (62841)11/12/2019 3:33:35 PM
From: Nya_Quy  Read Replies (3) | Respond to of 78653
 
Do you have any insight into how the "Appreciation Potential" is calculated in the second list?

Nya



To: OldAIMGuy who wrote (62841)11/12/2019 4:38:57 PM
From: Paul Senior  Read Replies (1) | Respond to of 78653
 
I like to use S&P lists of their stocks - high potentials, high roe, low p/e, steady growthies, etc. That's when I can get those lists -- my broker doesn't provide them anymore in the broker's research tab. I likely will have to go to library to see VL's lists.

On those two lists, I hold several that have p/e's under 10x, and some others as well.

Good question as to how the potential gains are calculated. I see your DY has highest potential on that list with gains of 100-200%. Maybe, but it's a construction business, and those aren't doing well now (of the one's I look at). Median p/e of DY has been about 25x, so if consensus earnings are correct for next year ($3.08), maybe the stock will get up to $75 from current about $50. 3-5 year potential at 100-200%? Maybe. I can't see it. Otoh, if you are following only ten companies on the list, as well as adding "inventory" when the stock prices are low and disposing of inventory when prices are high, I assume you likely will have a better feel for the company and its prospects.