It’s no secret why Movado Group, Inc. ($MOV) is in the bargain bin. Investors fear that the beast of 1 Infinite Loop, Cupertino–Apple, Inc.–has done for watches what it did for Walkmans (the iPod), desktop PCs (the iMac), music (iTunes), laptops (the Macbook), and cell phones (the iPhone), not to … Read More
AVX Corporation ($AVX): Cheap, safe, dividend payer at an historically high yield
AVX Corporation (NYSE:AVX) is another unusually cheap stock in the All Investable Screener. At $13.36, it has a market capitalization of $2.2 billion, and with net cash of $844 million, an enterprise value of $1.4 billion. It generated operating earnings over the last twelve months $212 million, putting it on … Read More
Newpark Resources Inc. ($NR): Possible takeover candidate
Newpark Resources Inc. ($NR) has been beaten up along with the rest of the oil and gas service industry, and it’s starting to look decidedly cheap. At its $7.21 close yesterday, it has a market capitalization of ~$606 million. It carries net debt of $91 million, putting it on an … Read More
Changes to the Screeners’ Output
I’ve retooled the screeners to add some new information at the request of some users. In addition to the acquirer’s multiple and its components–enterprise value and operating earnings–, and descriptive data–share price, symbol, name, industry, and market capitalization–the screener now shows several additional fundamental measures. Those measures include each … Read More
Net 1 UEPS Technologies, Inc. ($UEPS): Cheap, and fundamentally strong
Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS) has been running hard in 2015, up 69 percent since the start of the year, and up 13 percent since I wrote about it on June 10. It’s getting close to exiting the All Investable Screener, but it remains cheap on any number of metrics. With … Read More
Last chance to take advantage of extended offer: One month trial of The Acquirer’s Multiple for 9 bucks (save $40)
I’ve had a few requests to extend this weekend’s special offer, so I’m going to keep it going to 5pmPDT this afternoon. Click here to subscribe to the Acquirer’s Multiple and pay only 9 bucks for the first month (usually $49). In addition to the free Large Cap 1000 screen, … Read More
Alaska Air Group ($ALK) is well run and cheap
Lots of value investors find their own personal Waterloo in airline stocks (Buffett famously dumps money in the sector every decade or so). That might make the industry sound like a bad bet. Regardless, when I kick airlines out of my backtests, they tend to underperform, so I keep the industry … Read More
Subscribe to The Acquirer’s Multiple and pay only 9 bones for the first month (Expires midnight tonight)
For this weekend only, click here to subscribe to the Acquirer’s Multiple and pay only 9 for the first month (usually $49). In addition to the free Large Cap 1000 screen, get exclusive access to The All Investable Screener (see the backtest) The Small and Micro Cap Screener (see the backtest) Commentary … Read More
What happens to value in sideways markets: Shiller PE and expected returns using Hussman’s method
Robert Shiller’s cyclically adjusted price earnings (CAPE) ratio takes a 10-year inflation-adjusted average of the S&P500’s earnings to arrive at a price/earnings metric smoothed for the business cycle. It’s useful because earnings tend to be volatile and mean reverting. For example, the single-year PE metric peaked in 2009 at 125, indicating … Read More
Special offer this weekend only: One month trial of The Acquirer’s Multiple for 9 bucks (Save $40)
For this weekend only, click here to subscribe to the Acquirer’s Multiple and pay only 9 for the first month (usually $49). In addition to the free Large Cap 1000 screen, get exclusive access to The All Investable Screener (see the backtest) The Small and Micro Cap Screener (see the backtest) Commentary … Read More
RPX Corp: Unusually cheap stock with an unusual business model
RPX Corp is an unusually cheap stock with an unusual business model. With an $888 million market cap, and $376 million in net cash, RPXC has an enterprise value of $512 million, against which it has earned $76 million in operating income over the last twelve months, giving it an … Read More
NevSun Resources ($NSU): Arguably the best base metals miner in the world.
Nevsun Resources (USA) has taken a beating recently, down 17 percent from its June high of $4.26. It remains the cheapest stock in the All Investable universe. Chief Development Officer Scott Trebilcock gives a presentation on behalf of Nevsun Resources at the Metals Investor Forum in Vancouver BC. In the … Read More
S&P500 enterprise multiple 1990 to date
I like to check in occasionally to see where the S&P500’s average enterprise multiple stands. Right now it’s trading on just over 12x, where it’s been since the start of the year. It’s rarely been this expensive. Indeed, the average for the full period is 10.4, and it’s only exceeded this level … Read More
CNBC’s 9 stocks could be takeover targets
CNBC recently screened for small- and mid-cap companies that could attract takeover offers on the basis of valuation. CNBC examined free cash flow yield, enterprise multiple, and total debt as a percentage of equity to find the following nine names emerged: Symbol Company Industry EV/EBITDA FCF Yield Debt % NPK National … Read More
Telecom Argentina S.A. ($TEO): Undervalued Telco with a Strong Balance Sheet
Telecom Argentina S.A. ($TEO) popped into the Large Cap 1000 screener this week at the top position. With a $3.5 billion market cap, virtually no net debt, and $653 million in operating earnings last year, the company trades on an acquirer’s multiple of just 5.3x. It yields 4 percent and … Read More
Joel Greenblatt keeps it simple: “Buy Good Stuff Cheap, Sell Bad Stuff Dear”
In today’s Observer author William Green has an interesting excerpt from his new book The Great Minds of Investing on Joel Greenblatt: …Mr. Greenblatt is always searching for a “systematic way” of “doing better.” In 2003, this led him and Goldstein to launch a $35 million research project to prove the effectiveness of the … Read More
Mobile TeleSystems (NYSE:MBT): Cheap Russian telecom
Mobile TeleSystems (NYSE:MBT) has been beaten up over the last month (off 12.5 percent) and at $9.69 is now the sixth cheapest stock in the Large Cap 1000 Screener (it’s free if you register). With a $9.7 billion market cap and $4.4 billion in net debt, MBT doesn’t have the usual … Read More
Silvercorp Metals Inc. ($SVM): Cheap, Cash-Rich, and Buying Back Stock
Silvercorp Metals Inc. (NYSE:SVM) is the seventh cheapest stock in the All Investable Screener with an acquirer’s multiple of 5.53. At $1.10, it has a $188 million market cap, an enterprise value of $172 million, and has generated $31 million in operating income over the last twelve months. It trades … Read More
Alaska Air Group, Inc. ($ALK) and PAR Capital Management
Meb Faber sent out an interesting note from The Idea Farm today about PAR Capital Management. PAR are a $4.3 billion hedge fund with a specialization in airline stocks. According to their latest 13F filing, their fourth largest holding at almost 7 percent of the fund is Alaska Air Group, Inc. … Read More
Nevsun Resources Ltd. (NYSEMKT:NSU) Update on New Discovery
I first wrote about Nevsun Resources Ltd. (NYSEMKT:NSU) a month ago on May 22. Since then the stock has run from its May 21 close of $4.10 to as high $4.26 and as low as $3.77 and now back to $4.05 at the time of writing. NSU was and remains the … Read More