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valuemoney (99.99)

Valuemoneygreen

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June 26, 2012 – Comments (9)

I made a new profile. I should have done it a long time ago. This profile is green thumb picks only. No red thumb picks will be made. This profile is of pick I would make as an actual investor. These are long term picks and will not be ended unless they get massively overpriced or something happens with the company of a major scale to make me change my mind. I am looking at the following when it comes to making my picks. ROE, ROI,margins, earnings growth rates for the next 5 years and beyond, share buybacks, management, balance sheets, cash flow, retained earnings, industry leaders and last but not least PE. Many stocks will not be on the list. This is because I will not be picking certain industry because I am not comfortable judging value. Energy and precious metals are 2 of them, tech to a certain degree is a 3rd. Anything comodity related also. I will pick industy leaders in energy like XOM maybe if it gets way undervalued. I am not looking for bottom bargain prices either. If the equity is cheaper than the market and it fits my screen I will add it to my picks. I am currently tracking about 100 companies. I am open to ideas so please feel free to suggest your ideas. If I don't agree or shoot holes in your idea don't be mad. It might be I am just not comfortable picking that particular equity. I am looking for stable growing stocks. Follow the page if you like. These are only ideas so do your own research. I may own any of these picks at any time. Currently I own BRK.B and BAC. I used to own WFC. WFC used to make up 100% of my portfollio. My equity exposure in real life is very concentrated. I usually never own more than 5 equities at one time. I created this profile to show ideas and track them. I wanted a profile without all of these GARBAGE picks I make on this current profile. The valuemoney profile is for points that is it and market timing is also a big factor, not a very good profile to follow if one is interested in getting ideas about INVESTING. You won't see huge gains on VALUEMONEYGREEN but the profile will give you an idea of what I look for when making an investment. I will put a pitch for each equity when I pick it. Currently there are none but I will get to it when I have time.

9 Comments – Post Your Own

#1) On June 28, 2012 at 6:57 AM, database2 (99.87) wrote:

Got a new one also....harbor654

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#2) On June 30, 2012 at 7:26 PM, database2 (99.87) wrote:

Congrats on #2 !!!

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#3) On July 03, 2012 at 2:48 PM, valuemoney (99.99) wrote:

Thanks

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#4) On July 05, 2012 at 2:59 PM, portefeuille (99.59) wrote:

http://caps.fool.com/player/valuemoneygreen.aspx.

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#5) On July 20, 2012 at 1:17 PM, JohnCLeven (81.94) wrote:

Hello, I'm somewhat new to the Fool. I haven't figured out how to send private messages, if there's a way, please let me know. (I also commented on your valuemoneygreen acct, please excuse the double post)

Anyway, I noticed that you are held is high esteem around these parts. I wanted to ask your opinion, if you have the time, of Coach, Inc (COH). COH seems to fit alot of the criteria that you look for and I was wondering if you had considered it or not. COH's ROI has been consistently over 30% for the past decade, outperforming 98% of companies in that metric over the past 5 years. EPS has grown at least 20% per year for 9 of the past 10 years (2009 being the exception) Free cash flow is incredible and FCF as a % of sales is consistently over 20%. The company has been buying back shares at about 4% per yr over the past 6 years. The company also has ZERO LT debt. The typical bear case is that fashion trends change, but COH isn't a trend. It's a well crafted, crafted over decades to represents social status and wealth, something most people desire to display. It is a simple business that wields incredible pricing power and low capital intensity. IMO, all signs point to an all star company.

However, companies of this magnitude typically sell at a hefty premium. COH's premium seems pretty darn reasonable to me. The stock is down 23% in the past 2 months. The PE is about 18 ( a small premium for an all-star), and EV/FCF is a very reasonable 16.8. That big drop seems like an incredible buying oppurtunity. What do you think? I bougth shares in RL at $56.92. BTW, i'm 23 yrs old and have ALOT to learn. Also long BRK.B and UPS.

Thank you for your time and advice!

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#6) On August 14, 2012 at 8:45 PM, dwot (70.53) wrote:

I am sure I saw you in number one spot for a while last week as well.  Congrats.

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#7) On August 14, 2012 at 9:12 PM, NOTvuffett (< 20) wrote:

valuemoney, i like to trade commodity related stocks since they are pretty simple businesses to analyse and i spend 12-15hr a day in my own business

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#8) On August 23, 2012 at 2:13 AM, valuemoney (99.99) wrote:

dwot ......thanks

NOTvuffett .........simple businessness but price for the commodity will goes up and down WAY too much. Example.......CORN.....how much is it worth? Tell me that and what the price will do next year maybe go up but maybe the price gets cut in half......then how much is the company worth that is related to the business.......POT or MOS is not going to charge the same prices if corn is @ 8 dollars and change or if 2 years later it is @ 4 dollars and change. Same goes for a company like X. Steel prices have a big effect on earnings. If I own a company outright personally I perfer STABLE earnings.....not huge losses in a particular year just because I made a bad bet on the commodity price.

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#9) On August 23, 2012 at 2:19 AM, valuemoney (99.99) wrote:

If you are a TRADER commodity stocks are a good bet to either go way up or way down. I like to think of myself as an INVESTOR so I prefer to stay away. Which ever one chooses to do is fine. Personally I stay away from commodity related investments for the most part.

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