Research Articles
Dividend Champions a Rare Undervalued Opportunity
2012-01-06
We believe that based on earnings, 2012 is starting out with the stock market undervalued. We believe in the long-term ownership of great businesses purchased at sound and attractive valuations. Consequently, we view the stock market as merely the store that we shop at in order to buy the businesses we want to own. Furthermore, […]
Two High-Yield Choices – SCANA Corp.(SCG) and Darden Restaurants (DRI) – Similar PE Ratios But One is Much Cheaper
2011-11-04
Why Darden Restaurants is so Much Cheaper than SCANA Corp. even though their PE Ratios are Approximately the Same This article is the second in a series of articles designed to elaborate on the proper utilization and understanding of the PE ratio as an important investing metric. Our first article in this series looked at […]
Amazon is a Great Growth Stock But Extremely Overvalued When its PE Ratio is Interpreted Properly
2011-11-01
The PE Ratio – Its Importance as an Investment Tool We believe that one of the most important and useful tools for the serious investor, is the price earnings ratio or PE. It is, however, one of the most misunderstood and misused tools. We believe that learning how to use it properly and understanding its […]
Netflix – A Brutal Lesson On the Dangers of Overvaluation
2011-10-26
The stock market has been pummeling Netflix (NFLX), assumingly based on significantly lowered expectations of future earnings results. However, the purpose of this article is not to provide a comprehensive analysis of Netflix the business. Many fine articles have recently been published that have covered the business potential of Netflix more than adequately. Whether Netflix […]
Dissecting the Dow: 21 of the 30 Dow Stocks are Undervalued, 6 are Fairly Valued, and Only 3 Appear Overvalued
2011-10-19
Introduction In this final segment, we will cover the 10 poorest performing DJIA stocks since 1995. In part one which covered the best 10 performing DJIA stocks; we saw a group of companies that could best be described as consistent above-average earnings generators. Consequently, it makes sense that they were the best performers since we […]
9 of the Second 10 Best Performing Dow Stocks are Fairly Valued
2011-10-17
The Dow Jones Industrial Average Second 10 Best Performers There is a lot of discussion taking place today about whether or not stocks are good long-term investments. Most of it is slanted towards the negative with dire forecasts of poor future returns. Implied in these forecasts of doom are opinions that stocks are overvalued today. […]