Target ($TGT) Valuation Changed Due to Capital Expenditures
On February 14th, 2012 I tweeted a valuation for Target using comparables Wal-Mart ($WMT), JC Penney ($JCP), Macy’s ($M) and Bed, Bath and Beyond ($BBBY). My intrinsic value came to $75.35, at which time Target was selling for $52.27. Pretty good valuation, huh? Target looked attractive? So attractive that @stevencopley on the ValueMyStock team picked up some shares. As I recommend, Steven revalues his holdings at least every quarter. While revaluing Target using comparables Costco ($COST), Wal-Mart ($WMT), Family Dollar...
read moreChesapeake ($CHK) and an “I Told You So” Moment
For the past decade energy has been the hottest ticket in Oklahoma. It supports our economy and community recreation, arts and sports. With their phenomenal expansion in Oklahoma City Chesapeake and CEO Aubrey McClendon have been the cornerstone of the “new” energy giants. As a resident of Tulsa, OK I have been able to witness this firsthand. I have found a few undervalued energy and energy-services companies that returned a handsome profit. Chesapeake is not one of them. In fact, I never invested in Chesapeake. Some of...
read moreStock Investing 101.4: How to Pick Stocks
Opening a brokerage account and buying and selling stocks is straightforward. Knowing which stocks to buy and sell is not, and a quick Google search will show dozens of investing strategies, each claiming success. Some strategies are developed academically and some investors share their strategy once they have made their own fortunes (see You Should Know Joel Greenblatt). All stock strategies fall under the umbrella of either 1) growth investing or 2) value investing. Ignore “capital preservation” strategies – you are trying...
read moreStock Investing 101.3: Buying and Selling Stocks
By now you have learned about stocks and opening a brokerage account. This third installment of beginner investment education will walk you through buying and selling stocks. Before You Buy Before getting too excited about buying stocks, be sure you have funded your brokerage account. The days of having to buy round lots (buying shares in multiples of 100) are over – you can get started with as little as $500. Be sure the money has cleared your account and is ready to use for purchasing stocks. You need a strategy. Without a...
read moreYou Should Know Joel Greenblatt
Warren Buffett is the name generally discussed by value investors as the pinnacle of investment success. He deserves every accolade thrown his way, and rightly so: he has amassed more wealth in his lifetime than almost anyone else in the history of the world, and he did by intelligent investing. But today’s value investors have heroes other than Buffett that deserve just as much attention and study. One of these is Joel Greenblatt. Joel Greenblatt built most of...
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