The Icahn Strategy

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From Icahn Enterprises L.P. December 2013 Investor Presentation: Across all of our businesses, our success is based on a simple formula: we seek to find undervalued companies in the Graham & Dodd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham … Read More

What happens to value in sideways markets: Shiller PE and expected returns using Hussman’s method

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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

S&P500 enterprise multiple 1990 to date

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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

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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

Breeze-Eastern Corp (NYSEMKT:BZC) Special Offer

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Breeze-Eastern Corp (NYSEMKT:BZC) is the 24th cheapest stock in the Small and Micro Cap Screener with an acquirer’s multiple of 8.89. It trades on a PE of 9.7  has an 11.4 FVF/EV yield. We’ve taken a deep dive into it over at Singular Diligence. We’re running a special for the readers … Read More

A Mechanical Investment Plan Using The Acquirer’s Multiple

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Bruce Murison* contacted me at the start of June with an interesting proposition: He would open a dedicated account to trade the Acquirer’s Multiple All Investable Stocks Screen and post his strategy and results on the site. He thought knowing there was a public eye keeping him on the straight and narrow might assist with … Read More

Icahn on Wall Street Week

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Click here if you’d like to see a current list of deeply undervalued takeover and activist targets using The Acquirer’s Multiple® (it’s free!), subscribe to The Acquirer’s Multiple® or connect with me on Twitter, LinkedIn or Facebook.

Hunting endangered species

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Back in the spring of 1999, when the world was enamored of dot coms and not much else, three guys at Piper Jaffray, Daniel J. Donoghue, Michael R. Murphy and Mark Buckley, produced a superb research report called Wall Streets Endangered Species. The thesis of the paper was that there were a large … Read More

Discussing Deep Value and the Acquirer’s Multiple at Harvard

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A little over a month ago I travelled to Harvard to speak to Michael Parzen’s business statistics class on Deep Value and the acquirer’s multiple. Here is the recording of that talk. Click here if you’d like to see a current list of stocks with the best rank using The Acquirer’s Multiple® (it’s free!), … Read More