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Sunday, November 22, 2015

From now on

As evidenced by my past entries, I will be doing writing in this blog with my own personal portfolio with my advanced analysis being put on Seeking Alpha as a supplement. I think that ends up evening out to a nice medium for me.

It would obviously get quite messy if I posted extra when I publish new Seeking Alpha articles. Then it would come out to posts on this blog only containing an update for a new article over there, which would just be inconvenient.

A new square will be on the right of the blog with a link to my Seeking Alpha profile with all of my post, and I may send out just a little notification in conjunction with a new post here. It will be unobtrusive, of course.

So back to business on the portfolio update.

I've slightly modified my portfolio from the past setup I had. I have slightly reallocated my assets to sell off GILD, and to include a new position I have opened up,

CALM Cal-Maine Foods, Inc. daily Stock Chart

Cal-Maine Foods. This one has one of the best sets of fundamentals I have seen in quite a while, and I think the valuation will appreciate significantly within a notable time period.

Now, I'm being relatively ambiguous with naming the exact time period I will hold this position, as there is no exact way I can tell exactly when I will exit it.

Fundamentally wise, the attributes surrounding it which are notable deem it a strong long term pick. It has a pretty fantastic set of stats, some of the most notable being:

  • 9.94x P/E Ratio, and 8.25x Forward P/E, deeming it relatively undervalued when compared to the broader market, which has an average P/E of about 15x. Nonetheless, the fact that the Forward P/E is still lower than the current P/E makes known that the stock is still projected to grow in earnings from this year to the next.
  • 0.44x Price to Earnings Growth Ratio. This makes known that the stock is undervalued in comparison to its earnings growth.
  • Low debt to equity ratio levels, at 0.05 current and 0.04 long term.
  • 6.92% dividend payout ratio. The dividend net is strong with this stock.
  • Very good management effectiveness stats. 29.2% Return on Assets, 39.7% Return on Equity, 20.0% Return on Investment. This means that management is able to maximize efficiency out of this company's enterprise operations.
  • A 49.09% short float. This is huge. I have, really, no idea why the stock is being shorted so much. But the fact that the stock is remaining stable in price action, complimented with the nice fundamentals deems a short squeeze very likely.
Here's some TA for you, on the point of why in the short term, in a technical view, this is still a decent pick as well.



So there I have it. I feel pretty good about this pick.

I am holding shares in CALM, GM, and VBR right now.
 

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