"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Waren Buffett

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

AJRD-4-10-19

Free Post: Value Stocks AJRD looks like a great company that has just topped in wave ( 1 ) up ...
Read More
URBN-4-3-19

URBN-4-3-19

URBN - easy money are made On March 27th I posted a chart below in my private educational chat. My ...
Read More
URBN-3-30-19

URBN-3-30-19

URBN - Looking back at March 2019, a month of a battle between bulls and bears In the video I ...
Read More
BIIB-3-21-19

BIIB-3-21-19

BIIB - too early to catch it Biogen Inc is a biopharmaceutical company. It is engaged in discovering, developing, manufacturing ...
Read More
STMP-3-20-19

STMP-3-20-19

STMP - this decline looks corrective and is setting up a new rally In STMP we have got a strong ...
Read More
STMP-3-17-19

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 ...
Read More
CTXS-3-12-19

CTXS-3-12-19

CTXS - a decent LONG setup for a strong company Citrix Systems provides enterprise-level virtualization software products. It has solid ...
Read More
NKTR-3-8-19

NKTR-3-8-19

NKTR - nice Inverse Head and Shoulders Long setup Nektar Therapeutics Inc is a biopharmaceutical company that seeks to enable ...
Read More
URBN-3-7-19

URBN-3-7-19

URBN - another LONG setup in a great company In my previous post dated 6 March 2019 I showed a ...
Read More
STMP-3-7-19

STMP-3-7-19

STMP - great long setup right here In my previous post on STMP published on 22 Feb 2019 I explained ...
Read More
URBN-3-6-19

URBN-3-6-19

URBN - nailed that gorgeous LONG setup for a great company You may have heard that on Monday I launched ...
Read More
STMP-2-22-19

STMP-2-22-19

STMP - emotional 50% drop completes a corrective wave ( 4 ) down Stamps.com Inc. is a provider of Internet-based ...
Read More
ABBV-2-19-19

ABBV-2-19-19

ABBV - may rally to $93 - $97. AbbVie Inc is a biopharmaceutical company that discovers, develops, manufactures and sells ...
Read More
Gold-miners

Gold-miners

Gold & Silver miners What companies should you buy? Free-cash-flow yield = Free cash flow / ( market cap + ...
Read More
HBM-1-30-19

HBM-1-30-19

HBM - completing wave 1 up off the low. Will be waiting for a pullback Hudbay Minerals Inc is a ...
Read More
LGND-1-18-19

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 ...
Read More
FCX-1-16-19

FCX-1-16-19

FCX - one more push to retest Aug 2015 lows may make it a buy Freeport-McMoRan Inc is a mining ...
Read More
MU-1-16-19

MU-1-16-19

MU - a great long setup worth watching Micron Technology Inc manufactures different kinds of memory such as DRAM, NAND, ...
Read More
FFIV-1-15-19

FFIV-1-15-19

FFIV - has started a large correction after completed rally off 2001 bottom F5 Networks Inc provides software-defined application services ...
Read More
TAP-1-11-19

TAP-1-11-19

TAP - highly profitable yet cheap company Molson Coors Brewing Co is engaged in brewing activities. It has a diverse ...
Read More
LRCX-1-11-19

LRCX-1-11-19

LRCX - a fantastic investment opportunity Lam Research Corp functions in the semiconductor industry. It develops and sells semiconductor processing ...
Read More
AMAT-1-10-19

AMAT-1-10-19

AMAT - a great company that may get an amazing entry on OML Applied Materials Inc is a supplier of ...
Read More
GE-12-13-18

GE-12-13-18

GE - the decline off the July 2016 top looks completed I can count five waves down off the top ...
Read More
Value Investing

Value Investing

GET NEW VALUE PICKS FOR ONLY $24.99/month Value Investing:​ "It is far better to buy a wonderful company at a ...
Read More

Login