Browsing Category: "Stock Research"
Continuing my look back at the performance of my Consistent Cash Creators screen, today I completed examining the performance of Consistent Cash Creators with high normalized earnings yield during the Great Recession. The current financial crisis started in 2007, but really only picked up steam in 2008 and 2009. This tumultuous period of the stock [...]
This is a follow-up to a post I wrote earlier today on my stock screen to identify value stocks of companies that are consistent cash creators. I decided to run my Consistent Cash Creators screen again given the amazing performance of the consistent cash creators from last year. Those stocks that were selected last year [...]
It has been over a year since I discussed my Consistent Cash Creators with High Normalized Earnings Yield screen. I developed this screen a few years ago in order to identify companies that have consistent free cash flow growth trends that are easier to predict and are trading at the best values.
I must admit that I [...]
This is a follow-up to a series of posts I wrote last year on companies that are consistent cash creators. Given we are potentially at a market turning point, I decided to run my Consistent Cash Creators screen again.
Sotheby’s (BID) stock dropped almost 12% today just on the heals of a $198 million auction for Damien Hirst’s art earlier this week. This was a record sale for an auction by a single artist according to Sotheby’s. The auction total was much higher than any of the expectations I saw published.
So what’s with the steep stock [...]
Today I’ve been thinking about who the winners and losers of the government bailout of Fannie Mae (FNM) and Freddie Mac (FRE) will be. It will take some time to sort the impact of unprecedented government intervention on the financial markets. However, the market is already betting on how this “black swan” event will play out.
Placing the two [...]
This past Saturday I had the opportunity to finally visit one of the Western Sizzlin Corporation (WEST) restaurants. The particular restaurant I visited was actually a Great American Buffet branded Western Sizzlin restaurant. After fishing with my son on the Potomac River all morning, we stopped by the Alexandria, VA restaurant that was fairly close to where we [...]
Last week I received a great suggestion for normalizing the earnings yield number I use to sort the list of Consistent Cash Creators. Instead of just using EBIT from the previous 12 months, I instead used the average EBIT over the past 7 years divided by enterprise value for today’s screen. The idea here is that [...]
Continuing my series on Consistent Cash Creators, this week I’ve pulled all my previous work together to create an actual screen. In Part 1 of Consistent Cash Creators, I examined the most consistent cash generating companies. I received some excellent feedback. In response to a comment regarding the appropriateness of using a linear trend model, I examined whether [...]
Stop using compound growth rates now! While using a percent growth rate for free cash flows might be conventional, mathematically convenient and easier to convey to others, it is not as accurate or conservative as using an absolute rate of change from a linear trend model. Value investing is all about being conservative and accurate, so think twice [...]
