Bellard's top 20 cash flow stocks for 2008
February 26, 2008
– Comments (8)
I have finally finished my top 100 cash flow stock list. I will show the top 20 here. As I discussed in my first post, After this list is screened, compiled, researched, etc. the real work has just started. Each equity on this list must be researched in detail. These are some of the steps I take:
1) Read the past 2 years quarterly results and 10-Q's.
2) Listen to all the investor presentations, and conference calls, verifying the above guidance for the the above earnings.
3) Research the sector.
4) Google news - all articles in the past year for company name.
Once again I will warn investors of catching a falling knife. Many of my top 20 DCF stocks, landed there mainly due to HUGE stock price declines. In my experience, these unloved stocks create the best opportunities of above average appreciation for the value long term investor.
My list if fairly diverse, but overweight energy stocks(6 of the 20). There is no order in the top 20, as I use 5 different cash flow metrics - so depending on the individual metric the ordering is different. I will list the stock, its original price for inclusion in my list, there current stock price, and my current DCF valuation.
Stock Original price Current price DCF value
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1) ETFC 2.5 4.75 16
2) ZINC 13 16.6 35
3) ACAS 29 36 85
4) PGH 16 18.5 26
5) CHK 37 45 60
6) IPSU 18 19 40
7) MEOH 23 26 80
8) BVF 12.5 13.5 65
9) RFMD 3 3.25 11
10) E 60 68 155
11) VPHM 9 9 24
12) TNE 20 25 60
13) AE 23 25 44
14) EME 20 24 50
15) TEX 52 66 170
16) MTW 40 41 110
17) PDS 18 22 50
18) PDC 13 13.5 24
19) SPIL 8 8 22
20) RS 46 55 110
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