My Financial Analysis of Stocks

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These are my Financial Analysis on stocks using Value and Growth Investing methods, particularly Buffettology. These methods typically require the Intelligent Investor to buy and hold the stock for 10 years or more. For those that are Day Trading or are buying and selling stocks within a year's time frame, this method will NOT work for you. Any information is solely for educational purposes, not for trading purposes or advice.

We use Google Spreadsheet to do our analysis because it is capable of delivering the stock price in real-time. The calculations in our analysis changes in real-time as the stock price changes every 20 minutes.

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Stocks That We Bought and Sold for the Past Year to Date

posted Jul 27, 2019, 12:04 PM by Intelligent Investor

Sold John Deere (DE), it is a cyclical business and the trade war the U.S. has with China isn't making things any better. Berkshire Hathaway also sold their holdings of this company a few years ago.

Bought Bank of New York Mellon (BK), we think their numbers looks better than Goldman and Sachs (GS), Berkshire Hathaway continues to accumulate this stock, the P/E Ratio is at 12, and has a Dividend Yield of 2%.

Bought Synchrony Financial (SYF), Berkshire Hathaway own this, P/E Ratio is at 7, and has a Dividend of 3%.

Bought International Business Machines (IBM), the Technical Analysis shows that it has bottomed, they announced to acquire Red Hat (RHAT) a provider of Linux OS, the P/E Ratio is at 12, and has a Dividend of almost 5%.

Bought Biogen (BIIB), I've always wanted to buy this company, one of their Alzheimer's drug research failed and their stock tanked to a P/E Ratio of below 10. In our opinion, this company is way undervalued given the fact that they have cash to make acquisitions and other drugs on their pipeline.

Summary:

Sold:
John Deere (DE)

Bought:
Bank of New York Mellon (BK)
Synchrony Financial (SYF)
International Business Machines (IBM)
Biogen (BIIB)

My Stock Holdings 2018

posted Jul 24, 2019, 7:47 PM by Intelligent Investor

My Research 2018

posted Jul 24, 2019, 7:45 PM by Intelligent Investor   [ updated Jul 24, 2019, 7:46 PM ]

Berkshire Hathaway Sells Shares of PSX

posted Aug 28, 2018, 1:32 PM by Intelligent Investor

Berkshire Hathaway has been selling its shares of Phillips 66 (PSX). They held about 35 million shares of PSX stock as of the 2nd quarter of 2018, which is down from about 80 million shares as of the 4th quarter of 2017.

Because of this we sold all of our shares of Phillips 66 (PSX).

Sold All of L Brands (LB) and Park Hotels and Resorts (PK)

posted May 28, 2018, 10:35 PM by Intelligent Investor   [ updated Jul 26, 2018, 3:41 PM ]

An article in CNBC scared us. The parent company of Victoria Secret, L Brands (LB) could be a broken company.


As far as Park Hotels and Resorts (PK),  we never wanted to be in the luxury hotel business. During a recession, most luxury products just do not perform so well.

We Sold All of Our Shares in PayPal, We Saw Something Else We Liked Better

posted Feb 2, 2018, 10:15 PM by Intelligent Investor   [ updated Aug 2, 2019, 4:10 PM ]

We dumped PayPal (PYPL). The P/E Ratio is currently at 66 which is very high. The slowdown in earnings and revenue does not justify a P/E Ratio that high. We saw something else we liked better. Phillips 66 (PSX) is owned by Warren Buffett and their earnings seems to be on the upswing. It seems like the oil slump is over.

About more than 10 years ago the prices of oil crashed. So for 10 years oil prices were depressed. The economy seems to be growing at a rapid pace at this point which should stabilize the prices of oil due to increased demand from robust economic activity. We ended up purchasing shares of Phillips 66 (PSX).

Disclosure: We own Phillips 66 (PSX)

U.S. Bank's (USB) Return on Equity is Greater than Wells Fargo (WFC)

posted Feb 2, 2018, 10:06 PM by Intelligent Investor   [ updated Feb 3, 2018, 8:20 AM ]

We just realized that U.S. Bank's (USB) Return on Equity is the highest out of all the major banks. It is greater than Wells Fargo (WFC), J.P. Morgan (JPM), and Bank of America (BAC).

 Company  Return on Equity
 U.S. Bank (USB)  13%
 Wells Fargo (WFC)  11%
 J.P. Morgan (JPM)  11%
 Bank of America (BAC)  8%
 Citibank (C)  7%
Table 1: U.S. Bank has the highest Return on Equity when compared to other major banks.

The P/E Ratio is around 15 which is expensive compared to Wells Fargo, but we believe that the Federal Reserve's decision to end Quantitative Easing will raise the interest rates and thus make the bank more profitable. Banks make more money when interest rates go higher. Therefore, we ended up purchasing shares of U.S. Bank (USB).

Disclosure: We own shares of U.S. Bank (USB)

My Research 2017

posted Jan 15, 2018, 4:12 PM by Intelligent Investor

Looks Like Capitulation in Viacom (VIAB)

posted Nov 17, 2017, 10:37 AM by Intelligent Investor   [ updated Nov 17, 2017, 10:38 AM ]

Capitulation is when large institutional investors give up on a stock and sell all of their holdings in that stock. Capitulation is a sign of a bottom for a stock. It means that everyone that needed to sell that stock for any reason has already sold. There are no more large institutional sellers left.

A few signs of Capitulation are:
1) The company delivers bad news and yet the stock price does not go down much.
2) The company delivers bad news but the price has become so cheap so the stock price actually goes up.
3) Large volume meaning large institutional holders are giving up or buying.

Signs of Capitulation in Viacom (VIAB):
1) The company delivered bad news when they announced earnings yesterday 11/16/2017, but the stock price didn't go down much. It actually bounced back from its lows.


2) And if you look at the chart below, the stock price bounced back from its lows yesterday and soared almost 10% today 11/17/2017 without any significant good news about the company. The price is so cheap with a P/E Ratio of 5.56, the price actually goes up.

3) Yesterday 11/16/2017 there was large volume while to stock price was going down meaning large institutional investors are giving up. And today, there is large volume again as the stock price is going up 10%, this means that large institutional holders are buying because of Viacom's overly cheap valuation, P/E Ratio is at 5.56!

Source: Google Finance

Disclosure: We own shares in Viacom (VIAB)

IBM's Fortunes Finally Turns Around Today

posted Oct 17, 2017, 4:03 PM by Intelligent Investor   [ updated Aug 2, 2019, 4:09 PM ]

Warren Buffett purchased IBM shares in the year 2012 worth billions of dollars. Yet the stock has pummeled and has been pounded downwards for the past 5 years. The company's revenue has been dropping due to their exit of the computer business. IBM sold their computer business and invested into the Artificial Intelligence business. Wall Street didn't seem to like the drop in revenue so their stock has dropped and stayed flat for 5 years.

Today, their fortunes seem to be turning around. Their investment into the Artificial Intelligence business seems to be paying off. The drop in revenue has bottomed out. Wall Street seems to like it. The stock is up 4% today after-hours when they announced earnings.

See article here:

Update 10/18/2017
IBM's stock price surged 13% today. The company is making headlines regarding their turn around. I think this is it. Our long wait is over.


Disclosure: We own shares in IBM.

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