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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (846)	3/10/2022 6:51:48 PM
From: chowder	4 Recommendations Recommended By INCOGNIT0$ peterad red cardinal Tam3262 Read Replies (1) \| Respond to of 21830

Re: Young Folk Portfolio ... Sales and Purchases Today I sold two CEF's ... ASG and CSQ. I bought a new position in AMZN and added to the following companies: DHI .. TU .. DUK .. NVDA .. SHW. When AMZN announced a 20 for 1 stock split, I knew I wanted to finally buy a position in AMZN. At a share of price of approximately $3,000 it's difficult to tie up that much money in one company when all you can contribute is $600 per month, it's in a Roth and you are always 100% invested. There isn't enough dividends being generated to build a position in AMZN as well as the other companies so the money has to come from somewhere. Enter, the CEF's. I had ASG and CSQ set up on dividend reinvestment and once they grew in excess of a full position, I would trim them back and take the proceeds to invest in the equities within the portfolio. I don't wish to trim the equities, I want to keep building them up in size, so the CEF's serve that purpose. With the proceeds of the sales coming from the CEF's, I was able to purchase 2 shares in AMZN which will become 40 shares in early June. I then put the rest of the cash to work in the following: DHI, TU and DUK are all selling at a discount to their intrinsic value. In looking at DHI here are the analysts Buy, Hold and Sell calls. 40 - Strong Buy or Buy 10 - Hold 0 - Sell CFRA assigns DHI a fair value price of $170.00, they are clearly Bullish with a Strong Buy rating. Morningstar assigns a $113.00 fair value price. Using a DCF Model the Base Scenario says the intrinsic value of DHI is $165.97. If one were really Bearish on DHI the intrinsic value is $120.86. The current share price is well below the lowest of the above price points making DHI selling at a deep discount to fair value making it a Strong Buy for me. ------------------ TU is more in the range of fair value as opposed to deep value but still worthy of purchase. Morningstar says FV is $25.00. CFRA says FV is $23.73. Intrinsic value based on the Base Scenario $29.31 (selling at a discount). TU was at $26.12 so I thought it worth buying at this price point as I needed that 3.89% yield to help make up for some of the yield I lost in selling some of the CEF's. ---------------- DUK is fully valued but I wanted it for it's stability and defensive nature of the utility sector. Their forward earnings growth expectations this year and next are more than double what they were the last two years and when combined with their 3.75% yield, that made it a buy for me. Morningstar has $100.00 as FV. CFRA has FV at $98.33. Based on my DCF Flow model, intrinsic value is $128.18 and would make DUK undervalued if you base your analysis on the company as opposed to the company share price. ------------------- Both NVDA and SHW are overvalued but they are growth plays, not value plays, and I take a different approach with them. NVDA has corrected 34.56% and SHW has corrected 32.92%. From my perspective, when we say buy the dips, a 30% dip is worth buying when dealing with quality companies.