"Sanofi-Aventis (SNY), a pharmaceutical products company, is a buy based on our 'Benjamin Graham value' model," says John Reese who assesses stocks based on the investment criteria of numerous "legendary" investors.

The editor of Validea, explains, "Indeed, the stock earns a 100% score, meeting all of the investment criteria we review in for this value-oriented screen.

Continue reading Sanofi-Aventis (SNY): 100% Score on a Ben Graham Value Model

Sanofi-Aventis (SNY): 100% Score on a Ben Graham Value Model originally appeared on BloggingStocks on Fri, 01 Apr 2011 12:00:00 EST. Please see our terms for use of feeds.

"Benjamin Graham has been recognized for decades as the father of value investing; Warren Buffett was a student of Ben Graham at Columbia University and later worked for Mr. Graham for several years," notes J. Royden Ward.

The editor of the Cabot Benjamin Graham Value Letter explains, "We've combined Warren Buffett's and Ben Graham's investing criteria for choosing stocks and and found six high-quality companies.

"We believe that the six stocks that passed our screen each sell at sensible prices, offer reasonable appreciation potential, and provide solid dividends.

Continue reading Double Values: 6 Stocks That Meet Buffett and Graham Criteria

Double Values: 6 Stocks That Meet Buffett and Graham Criteria originally appeared on BloggingStocks on Fri, 25 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

"We screened the Investors Business Daily (IBD) and Zacks databases to find companies whose earnings are accelerating and whose earnings estimates are being increased by analysts," says J. Royden Ward.

The editor of the Cabot Benjamin Graham Value Letter continues, "All of the stocks in our list have IBD Composite Ratings of 95 (99 is best) and Zacks Ratings of 1 or 2 (1 is best). These recommendations offer excellent appreciation potential with moderate risk.

Continue reading Ben Graham-Style Techs with Rising Estimates

Ben Graham-Style Techs with Rising Estimates originally appeared on BloggingStocks on Tue, 08 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Ensco: A Ben Graham Value in Drilling

Ensco: A Ben Graham Value in Drilling originally appeared on BloggingStocks on Thu, 24 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

Last year, Archer Daniels Midland (ADM) was included in my stock picks for 2010 and it lost 4.9%. I gave some consideration to keeping it in the mix this year but thought more highly of other stocks in 2011, so I cast it off.

The turning of a calendar page is arbitrary and investments have only modest correlation to it in most instances. However, two weeks into the year ADM is already up, closing Wednesday at $32.56.

Corn prices have been rising and when last I checked futures were up another 1.47% in early morning trading.

Continue reading Chasing Value: Corn Soaring, ADM Boring, Investors Snoring

Chasing Value: Corn Soaring, ADM Boring, Investors Snoring originally appeared on BloggingStocks on Thu, 13 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

I have already gone on record this year saying that financial companies and insurance stocks are going to continue to rebound. In my previous two posts Chasing Value: 2011 Stock Picks -- 5 of 11 and Chasing Value: 2011 Stock Picks -- 6, 7, 8, 9, I included several financial institutions. Today I add an insurance company.

The industry got whacked hard for many reasons. For one, it makes a significant amount of profit by investing its float, and like every other investor, the industry lost a pile of money in the financial crisis. It was embroiled more directly than some industries, as several insurers are affiliated with banks. Finally the housing crisis meant disruption to payment streams by homeowners who were delinquent on more than their mortgages.

Continue reading Chasing Value: 2011 Stock Picks -- 10 and 11

Chasing Value: 2011 Stock Picks -- 10 and 11 originally appeared on BloggingStocks on Mon, 10 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

The list of stocks has been whittled down to four. Chevron Corporation (CVX) made the cut to become the oil company stock. Three defense sector powerhouses are competing for one spot in Chasing Value: 2011 Stock Picks -- The Journey Begin.

Today we take a more comprehensive view returning to earlier metrics, and adding some other criteria in order to reach a conclusion. This series began with the contention that making specific predictions was a fools errand with the danger to your portfolio coming from "black swans". To try and add some general counter measures to this possibility I decided that the defense and oil sectors might provide protection against the greatest of threats, war and terrorism. On that basis I posted Chasing Value: You Must Own Defense and Oil for Safety.

Continue reading Chasing Value: Defense and Oil -- Part 4 Conclusion

Chasing Value: Defense and Oil -- Part 4 Conclusion originally appeared on BloggingStocks on Fri, 17 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

"Despite more than doubling since we first recommended it just shy of two years ago, Sprott Resources (SCP), a Toronto-listed resource company, remains a strong buy, selling at a discount to a reasonable asset value," says Adrian Day.

The money manager and editor of The Global Analyst explains, "Sprott makes direct and indirect investments in the resource sector, frequently with new businesses which it subsequently takes public after nurturing them.

"One such is Orion Oil & Gas, of which Sprott still owns 78%, and remains undervalued. After more possible acquisitions, Orion could increase in value and more shares be spun off.

Continue reading Strong Assets Boost Sprott Resource (SCP)

Strong Assets Boost Sprott Resource (SCP) originally appeared on BloggingStocks on Wed, 08 Dec 2010 13:10:00 EST. Please see our terms for use of feeds.

"Quality companies with low price-to-book value ratios (P/BV) have outperformed companies with higher valuations for the past three-, five- and 10-year periods," says J. Royden Ward.

The editor of the Cabot Benjamin Graham Value Letter explains, "Our search for undervalued companies to with price to book value ratios found three stocks in tech-related sectors: Kyocera (KYO), PC Connection (PCCC), and Thermo Fisher Scientific (TMO).

"To find the best stocks with low price-to-book value ratios, we required Value Line Financial Strength ratings of A or better, dividend payments increasing over time, low P/E ratios and good earnings prospects for the next 12-month and five-year periods.

Continue reading Ben Graham Techs? A Trio of Low P/E-to-Book Value Buys

Ben Graham Techs? A Trio of Low P/E-to-Book Value Buys originally appeared on BloggingStocks on Tue, 30 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.

"It's been tough going for Lockheed Martin (LMT) in 2009-10, as well as for defense stocks overall," notes Stephen Leeb.

The editor of Leeb's Income Performance Letter explains, "Investors are concerned about the impact cutbacks in defense spending will have on profits. Still, the company arguably is the best positioned of the major defense contractors to weather a smaller defense budget.

"The company is bracing for leaner times and has taken cost-savings measures, such as offering early retirement incentives to executives. And its share price appears to have more than discounted any cuts that may come down the pike.

Continue reading Lockheed Martin (LMT): Defensive Value

Lockheed Martin (LMT): Defensive Value originally appeared on BloggingStocks on Thu, 18 Nov 2010 10:00:00 EST. Please see our terms for use of feeds.

"Research In Motion (RIMM) is clearly undervalued at 9.7 times forward EPS; investor's concerns regarding the intense competition in the smart phone market have caused the stock price to decline 26% during the past seven months," says value investor J. Royden Ward.

The editor of Cabot Benjamin Graham Value Letter explains, "We believe exciting new product introductions will boost sales and earnings growth more than expected during the next couple of years.

Continue reading Research In Motion (RIMM): A 'Ben Graham' Value Buy

Research In Motion (RIMM): A 'Ben Graham' Value Buy originally appeared on BloggingStocks on Wed, 17 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.

"Procter & Gamble (PG), a long-time growth stock, is now in value territory based on its above-average dividend yield," says Marvin Appel.

The editor of Systems & Forecasts explains, "The stock is -- which has become a high dividend payer -- is recommended as a long-term holding in a conservative equity portfolio.

"Procter & Gamble, historically an expensive stock in terms of its dividend yield, has developed into a high dividend payer by the standards of the U.S. market.

Continue reading Procter & Gamble (PG): Growth Stock Becomes Value Buy

Procter & Gamble (PG): Growth Stock Becomes Value Buy originally appeared on BloggingStocks on Thu, 04 Nov 2010 13:10:00 EST. Please see our terms for use of feeds.

The editor of Cabot Benjamin Graham Value Letter explains, "Gilead is a biopharmaceutical company that discovers, develops and markets therapeutic treatments to combat viral, bacterial and fungal infections. Its shares undervalued at 9.7 times forward 12-month EPS.

"Teva, based in Israel, develops, makes and sells generic and proprietary-branded (store brand) drugs. Its shares are clearly undervalued at 10.6 times forward EPS. We consider both stocks to be very low risk.

Continue reading Ben Graham Buys in Pharma: Gilead (GILD) and Teva (TEVA)

Ben Graham Buys in Pharma: Gilead (GILD) and Teva (TEVA) originally appeared on BloggingStocks on Thu, 14 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.

• Lockheed Martin: 3.77%
• Raytheon Company: 3.16%
• Northrop, Grumman: 2.89%
• General Dynamics: 2.59%

Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 2

Chasing Value: Scoping Out Defense Contractors -- Part 2 originally appeared on BloggingStocks on Tue, 12 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 1

Chasing Value: Scoping Out Defense Contractors -- Part 1 originally appeared on BloggingStocks on Mon, 11 Oct 2010 14:30:00 EST. Please see our terms for use of feeds.

A very common refrain among value investors, "my pal Warren" being head of the class, is buy on fear (sell on greed), and it is working with the toxic stock portfolio.

This is the second update to my ranting twelve weeks ago that the six most highly traded stocks receiving the most bad press would be a great contrarian investment, and that this group would outperform the overall market without much difficulty.

It was true earlier, and it is still true today as the DJIA topped 11,000 again. The toxic stocks list includes Bank of America (BAC), Citigroup (C), General Electric (GE), BP (BP), Goldman Sachs (GS) and Transocean (RIG).

Continue reading Chasing Value: Toxic Stock Update #2 -- BAC, BP, C, GE, GS, RIG

Chasing Value: Toxic Stock Update #2 -- BAC, BP, C, GE, GS, RIG originally appeared on BloggingStocks on Mon, 11 Oct 2010 10:00:00 EST. Please see our terms for use of feeds.

I have always felt that for all the blabbing we do -- or blogging, in my case -- we should try as best we can to be accountable for our good and bad calls. This report is long overdue, but I will post it anyway since all of my past year's picks and results have been made public.

The market was very harsh in the early part of 2009, filling investors fear and trepidation, and sinking to a March 9, 2009 bottom. Perhaps some of the bleeding has stopped, but the economy has not healed as bears and bulls seem to carry the day, or every other day.

Continue reading Chasing Value™: 2009 Results Crushed the S&P 500

Chasing Value™: 2009 Results Crushed the S&P 500 originally appeared on BloggingStocks on Tue, 31 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Intuitive Surgical Is Not a Bargain, but It's Close

Chasing Value: Intuitive Surgical Is Not a Bargain, but It's Close originally appeared on BloggingStocks on Wed, 25 Aug 2010 13:20:00 EST. Please see our terms for use of feeds.

A few weeks ago, a good friend asked me for a stock recommendation that he might add to his Roth IRA. Three stocks with high yields came to mind that would be great in a retirement account. Note that I do not advise others what they should do, but share what I am doing or contemplating doing.

I recently included Merck (MRK) in a review of the granny portfolio, and discussed Royal Dutch Shell (RDS.A) in Chasing Value[TM]: Buffett Must Be Buying Oil. I own Merck in all of my portfolios and have made Shell the largest holding in the largest portfolio. The third stock that I thought of I don't yet own -- Telefonica SA (TEF). I looked at it last May, and it currently pays a whopping 7.13% yield.

Continue reading Chasing Value: Telefonica, a Work of Art

Chasing Value: Telefonica, a Work of Art originally appeared on BloggingStocks on Mon, 23 Aug 2010 09:30:00 EST. Please see our terms for use of feeds.

In case you need to be reminded to look closely at the books, today's poster boy for erroneous ledgers, Bernie Maddoff, should be a constant reminder. Furthermore, when you are looking at the books, remember that Benjamin Graham, mentor to "my pal Warren," advised buying stocks for less than their intrinsic value. And book value is the starting point in attempting to establish that.

Two weeks ago, I posted an update on my toxic stock picks. These were six unloved stocks where I felt the stage was set for market beating returns. The same is true again for today's market-beating group, although it is not the headlines that tied this group together, but their standout bargain metrics.

Continue reading Chasing Value: Cheap Stocks by the Book

Chasing Value: Cheap Stocks by the Book originally appeared on BloggingStocks on Mon, 16 Aug 2010 12:00:00 EST. Please see our terms for use of feeds.