Three Valuation Case Studies; Classical Gold Standard

Deadline

“No they cannot touch me for coining, I am the king himself.” –William Shakespeare,King Lear

Valuation Case Studies

Sit down with the Value-Line tear sheet and write down your thoughts. Does the company grow? Is it profitable and by how much? Good or bad balance sheet? And what would you pay and why?  Then listen to the lectures and see where you agree or disagree. On Friday or the next post, I will go over each company quickly–the goal is to acquaint you with an easy search tool-Value-Line and what to look for when analyzing a company.

Coach (COH): COH then Video Lectures: http://www.oldschoolvalue.com/blog/stock-analysis/video-coach-coh-valuation/

General Mills: GIS then Video Lectures: http://www.oldschoolvalue.com/blog/stock-analysis/video-general-mills/

Oracle: ORCL then Video Lectures: http://www.oldschoolvalue.com/blog/stock-analysis/video-oracle-orcl-valuation/

Learn how the founder of Old School Value got started: http://classicvalueinvestors.com/i/2010/03/interview-with-jae-jun-from-old-school-value-blog/

Controlling for Quality to improve investment results (Quant Investing)  http://greenbackd.com/2013/03/19/performance-of-the-decile-approach-to-magic-formula-alternative-quality-and-price/

More on currency wars…….

You need to understand the strengths and weaknesses of the Classical Gold Standard:

Warren Buffett’s Dad: Howard Buffett on the Gold Standard

The St. Louis Fed’s View: St Louis Fed 1981 on Classical Gold Standard

And the Austrians: The Gold Standard Perspectives in the Austrian School

PS: I haven’t forgotten readers’ questions like suggestions on accounting, how to start, etc.

 

2 responses to “Three Valuation Case Studies; Classical Gold Standard

  1. Hi John,
    I have a question only somewhat related to this post (it’s about valuation, but not the stocks mentioned here).
    I’m finding very little value at these levels considering at least a 10% return (when WEB figures 2.5% for his Heinz purchase what more can you expect – better than 1% in the bank).
    TGT is trading at 68.52 as of yesterday, and though it has decent numbers (10 years to increase revs and inc around 80%), the price its trading at makes it overvalued at the moment. But expectations seems quite frothy. Targets given by “analysts” of 121 implies income triples! Well they are planning to open 100 stores in Canada and without knowing what competition or cost that implies (or advantage), but still 300% increase? Already being compared to Walmart of the 80s. Err…

    It’s really weird how we’ve swung from utter fear to now (but not yet “irrationally exuberant”) when San Francisco real estate is red hot.

    My question is: Are you finding any value?

    Here’s the thing. Looking in out of the limelight places feels really uncomfortable. EG Aluminium, coal, China Agriculture etc etc. And some of their statements look nasty.

    Solar is beginning to look interesting BECOZ of the Suntech bankruptcy.

    • No, except in certain special situations and specific gold, silver and copper mining stocks–see today’s post #3.

      Franchise companies like like Coke or P&G are not undervalued but they are not overvalued compared to the market. But we live in dangerous times. I would build a shopping list for when the $%^&* hits like it always does.

      I am focused on some mining companies, short certain companies, in 35% cash and certain long-term holdings. But money continues to be easy but that just makes the future more difficult as mal-investments build up.

      The important thing is do nothing if you can’t find anything. Don’t force anything. The market will be there tomorrow.

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