"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Price-to-Free-Cash-Flow ratio
I look for profitable companies with PFCF multiple of less than 15 times. That multiple implies a FCF yield of around 6.6 percent—which looks very attractive in low interest rate environment.
Return on Capital Employed
It is great to know that a company is profitable and generate a free cash flow. But we should also check if management has a track record of successful reinvesting that profit and increasing shareholders value. There are many cases when a profitable company buys mediocre barely profitable businesses for enormous price destructing shareholders value. I look for companies with ROCe > 20%.
AJRD-4-10-19
Free Post: Value Stocks AJRD looks like a great company that has just topped in wave ( 1 ) up ...
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URBN-4-3-19
URBN - easy money are made On March 27th I posted a chart below in my private educational chat. My ...
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URBN-3-30-19
URBN - Looking back at March 2019, a month of a battle between bulls and bears In the video I ...
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BIIB-3-21-19
BIIB - too early to catch it Biogen Inc is a biopharmaceutical company. It is engaged in discovering, developing, manufacturing ...
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STMP-3-20-19
STMP - this decline looks corrective and is setting up a new rally In STMP we have got a strong ...
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STMP-3-17-19
STMP - buying an Ugly, Obscure and Out-of-fashion stock to make a quick big buck The first time I posted ...
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CTXS-3-12-19
CTXS - a decent LONG setup for a strong company Citrix Systems provides enterprise-level virtualization software products. It has solid ...
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NKTR-3-8-19
NKTR - nice Inverse Head and Shoulders Long setup Nektar Therapeutics Inc is a biopharmaceutical company that seeks to enable ...
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URBN-3-7-19
URBN - another LONG setup in a great company In my previous post dated 6 March 2019 I showed a ...
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STMP-3-7-19
STMP - great long setup right here In my previous post on STMP published on 22 Feb 2019 I explained ...
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URBN-3-6-19
URBN - nailed that gorgeous LONG setup for a great company You may have heard that on Monday I launched ...
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STMP-2-22-19
STMP - emotional 50% drop completes a corrective wave ( 4 ) down Stamps.com Inc. is a provider of Internet-based ...
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ABBV-2-19-19
ABBV - may rally to $93 - $97. AbbVie Inc is a biopharmaceutical company that discovers, develops, manufactures and sells ...
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Gold-miners
Gold & Silver miners What companies should you buy? Free-cash-flow yield = Free cash flow / ( market cap + ...
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HBM-1-30-19
HBM - completing wave 1 up off the low. Will be waiting for a pullback Hudbay Minerals Inc is a ...
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LGND-1-18-19
LGND - time to buy a strong free cash flow generator Ligand's business model is based on drug discovery, early-stage ...
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FCX-1-16-19
FCX - one more push to retest Aug 2015 lows may make it a buy Freeport-McMoRan Inc is a mining ...
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MU-1-16-19
MU - a great long setup worth watching Micron Technology Inc manufactures different kinds of memory such as DRAM, NAND, ...
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FFIV-1-15-19
FFIV - has started a large correction after completed rally off 2001 bottom F5 Networks Inc provides software-defined application services ...
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TAP-1-11-19
TAP - highly profitable yet cheap company Molson Coors Brewing Co is engaged in brewing activities. It has a diverse ...
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LRCX-1-11-19
LRCX - a fantastic investment opportunity Lam Research Corp functions in the semiconductor industry. It develops and sells semiconductor processing ...
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AMAT-1-10-19
AMAT - a great company that may get an amazing entry on OML Applied Materials Inc is a supplier of ...
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GE-12-13-18
GE - the decline off the July 2016 top looks completed I can count five waves down off the top ...
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Value Investing
GET NEW VALUE PICKS FOR ONLY $24.99/month Value Investing: "It is far better to buy a wonderful company at a ...
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