One of the new weekly additions here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios. Investors such as Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, and Howard Marks.
The top investor data is provided from the latest 13F’s over at WhaleWisdom (dated 2017-12-31). This week we’ll take a look at pick #15 in our All Investable Cap Stock Screener:
Foot Locker, Inc. (NYSE:FL)
A quick look at the price chart for Foot Locker shows us that the stock is down 47% in the past twelve months. We currently have the stock trading at an Acquirer’s Multiple of 5.41 which means that it remains undervalued.
Top investors who currently hold positions in Foot Locker include:
Cliff Asness – 2,712,528 total shares
Bill Miller – 1,413,675 total shares
Ken Griffin – 1,383,667 total shares
Pioneer Investments – 995,357 total shares
Joel Greenblatt – 317,075 total shares
Lee Ainslie – 137,674 total shares
Ray Dalio – 109,815 total shares
John Rogers – 104,193 total shares
Robert Rodriguez And Steven Romick – 94,195 total shares
Jean-Marie Eveillard – 73,300 total shares
Paul Tudor Jones – 54,473 total shares
John Buckingham – 47,389 total shares
David Dreman – 7,989 total shares
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3 Comments on “Acquirer’s Multiple Stocks Featuring In Dalio, Greenblatt, Miller Portfolios”
I had a few questions to which I haven’t been able to find the answers in the book or the blogs; perhaps these questions have been answered in “Deep Value”, so apologies if this is the case:
1) Is the earnings multiple not contrarian anymore when everyone starts doing it? My view (completely on a hunch is that) it may work better in say, India, than the U.S. – simply because there are fewer sophisticated investors or the market is not efficient….. Do you have studies that show it in emerging markets? Or is it you think because the U.S. markets are overvalued? Perhaps a combination of both.
2) You state EV/EBIT or operating earnings but I see on the blog that you use Pitroski score – I haven’t read Deep Value, but is it that the use of those additional metrics increases the returns? I know you said ROIC doesn’t necessarily? Have you tried other metrics such as Z score?
3) Has survivorship bias been accounted for – I think the answer is yes?
4) So a lot of companies have negative EV/EBITDA ratings but your screener doesn’t pick them up – I suppose a negative EV is good but can a negative acquirers multiple not be good too? Trying to understand why there is no negative AM result in the large 1000 screener (maybe there is for the paid screeners so the question becomes moot) – is there a market capitalization cut off where it shouldn’t be applied even though the smaller the market cap the greater the returns
5) The problem I found is backtesting – so I asked someone to run a backtest on an emerging market exchange and it beat the market significantly; not sure how I can backtest
6) Which industries would you exclude – financials/utilities/ would you also exclude oil companies or commodity plays – have you looked at results with and without because there are often lots of banks in other countries that have low EV/EBITs
7) What would you say a low/deep value AM is? So I think in an interview somewhere you said below 5? However, doesn’t this depend on the stock market in question – 5 may be low in the U.S. due to a CAPE of 25 for example, but should it be, say 2, for a market with a CAPE of say, 10.
8) Assuming zero transaction fees and taxes, would you say quarterly or monthly rebalancing is better than yearly? Can you say the same about net-net – you haven’t spoken much about net net in your book but again perhaps, this is covered in the other book?
read quantitative value by Carlisle and Gray , will answer most/ all of your questions. worth the money
Thanks – which one is preferrable – DEEP VALUE or QUANTITATIVE VALUE – do they cover the same ground?