Volume 2 Restaurants, Industrial, Transportation

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Volume 1

See below for examples of value in McKesson (long).

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McKesson at $118 is undervalued by 35% in our analysis.  

The RoE chart above is used to normalize earnings which are estimated to be $8.41 in 2014.  Normalized earnings (MPEPS) are shown below vs actual earnings and dividends.

Using the normalized earnings, we calculate the history of relative Payback to the market, and, in McKesson's case, establish a normalized range of 90-130%.

Using this range we calculate the theoretical price range and compare that to the actual high low and close as shown here.

As mentioned, normalized earnings are $8.41 which gives a Reinvestment Return (growth) of 15.8%.   

Implied earnings (IEPS) and growth (ImRR). 

Reversing the process, we calculate the the stock is fairly priced if it earns normalized earnings of $7.12 and growth of 12.9%.

Volume 13, Technology & Financial

Yahoo continues to offer good value.

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Volume 12, Consumer Cyclical, Energy, Diversified Chemicals

Stocks that stand out on the long side in this issue are Starwood Hotels (HOT $67) and Monsanto ($107).

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April 30th Screens for Value

The latest screens for good and bad values are shown below with the stocks distributed across their Sectors.  Below the April 30th screens are the corresponding screens from a month ago.  This will help in spotting changes in value which are a mainly a function of changes in price, or earnings.

A case in point is the reduction of Overvalued Technology stocks which was due mainly to substantially higher estimated earnings when 2014 was added.