Saturday, July 20, 2019

UPS Margin of Safety of 93%

According this Ohlson Clean Surplus valuation model, UPS is under-valued. Its "theoretical" price is $199 (why the quotes? because it's ridiculous to suppose that a model could really give you the true value of a stock, but it can be a useful guideline, ball park or an indication of a margin of safety).

CHRW is also trading with a margin of safety of 43%.


Thursday, July 18, 2019

THREE STOCKS WITH A VALUE GREATER THAN PRICE ACCORDING TO MODEL

An analysis of this 30 stock portfolio (large cap, medical technology, medical specialities) shows three companies with a value greater than price: SSMXF, WAT and HOCPY.

The valuation model is the Ohlson Clean Surplus.

Thursday, July 11, 2019

GlaxoSmithKline Scores High in Quality

I created a portfolio of the top pharmaceutical companies trading in the US and ran a quality of earnings analysis on them.  With the highest possible score being nine, GSK scored the best with seven.

Here are the results:

Quality of Earnings - Major Pharmaceuticals
Here's the balance of the companies in the portfolio.  We can see that AZN was the worst at two.
Quality of Earnings - Major Pharmaceuticals 2


Just for laughs, lets see how GSK and AZN have performed from a price perspective.


Interestingly, AZN has been outperforming GSK. It'll be interesting to say if this trend will continue or if it will, more correctly I believe, reverse.