jeudi 12 novembre 2015

4 inexpensive stocks to watch (close to their lowest PE ratio for the last year)

Many stocks are close to their lowest price for the last 52 weeks. Here’s a few cheap suggestions and most of them haven’t been discussed before on this blog.



Amaya (AYA.TO) : This gambling company is almost as controversial as a drug company. But growth look promising. The market reaction after results were released this week was completely crazy. If I were to start a portfolio, I would maybe put 2% of it on this stock, but not much more than that. 


Forward PE : 9

ROE : X

EPS growth 5 years : 64%

Debt : Very High



United Therapeutics (UTHR) : I’ve been a shareholder of UTHR in the past. The prospects of the company are still looking good. Their sales are mainly due to a few drugs, but the price of the share is not expensive. They have a lot of cash, they don’t have any long term debt and they generate a lot of cash. A safe investment that should bring good returns over time.


Forward PE : 12

ROE : 49 (the selling of a review voucher is in cause, usually the ROE is around 20-25, which is still good)

EPS growth 5 years : 79% (the selling of a voucher is in cause, once again…)

Debt : None



Polaris (PII) : I’ve just initiated a position in Polaris. This company produces snowmobiles, all-terrain vehicles and motorcycles. The numbers have been impressive for a long time. Their last quarterly results were pretty good but failed to impress the market. The ROE is very high (one of the highest ROE on the stock market) and the PE has rarely been this cheap. I’ve always liked this company but thought until recently that the PE was too high.


Forward PE : 13

ROE : 55

EPS growth 5 years : 34%

Debt : Medium



Carmax (KMX) is a company that some bald columnist on the gazette likes a lot. It’s simple : that guy doesn’t miss an occasion to write how much he likes that company which sells used cars. To me, the numbers of the company have always been OK, borderline good. But I’ve never been astonished by it’s results. Whatever. It’s a good company and the PE has rarely been this low. 


Forward PE : 16

ROE : 19

EPS growth 5 years : 17%

Debt : High

5 commentaires:

  1. btw any idea what's going on with the Nobilis Rollercoaster?

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  2. The complete release of their results was delayed today. People didn't like it.

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  3. Nobilis is cheap also... They said the new audit firm is arguing about opening non cash balance sheet...Expect Goodwill/intangibles reval and Equity Adj... Talked about Standard IFRS/US GAAP guidelines issues...

    KMX was a pick from Giverny Capital's CEO François Rochon in both Les Affaires and in his column in The Gazette and it is also a pick from Odlum-Brown and Cote 100... I initiated a position in Carmax (KMX) recently, but Lithia Motors (LAD) seems also attractive. Smaller with numbers similar or better than KMX... LAD has dealerships in rural communities.

    Kmx have an unusual approach for dealing with customers.... new/used cars without commercial director for warranty, financing... Fair price with no bargainning....

    If you don't know Murray Leith, please go read Odlum-Brown Monthly newsletters on their website... usually a quarterly review of portfolio is done. Performance is very good and this is a good Large Caps complement to Donville' small caps picks...

    Value

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    Réponses
    1. Accord to their latest13F Giverny Capital increased his position in KMX by 20%, It is also his third largest position. Because of his impessive track record, it trust him with this pick, I also initiated a position.

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