London, UK, 5th Feb 2022, ZEXPRWIRE, Value stocks are doing well in this rough market. One of the best values is managed by Ben Graham’s company, which has a minimum market value at $1 billion and currently trades around 18 times forward earnings per share (P/E).
Graham-Newman Corp. (GNRC) has been in business for more than 75 years and is the leading maker of chicken wire screen, which is used mainly as hardware cloth to cover food and beverage containers.
BitfinityFX Broker Says we discovered this company through our exhaustive search for undervalued stocks trading at less than 50% of book value and with a minimum market capitalization of $2 billion. We found that GNRC was the only one that we could buy with zero debt on its balance sheet; all other names were either over the required threshold or had too much debt on their books (we can’t use financial leverage in our portfolios). Currently valued at less than $1 billion, GNRC meets our requirement about market cap and offers a very conservative balance sheet.
The company has a lower debt level than the industry average. Its cash position is also very robust. In fact, it is four times bigger than its market value at $610 million and 38% of GNRC’s market capitalization. That means that for every dollar of cash on hand, GNRC has 38 cents worth of investments in the stock market. In addition to being a creditworthy debtor, Graham-Newman Corp. offers a solid dividend yield – 1%.
Although there are no restrictions on our use of this income supplement, we prefer not to mingle different sources of income in a portfolio because it undermines diversification goals. Since GNRC does offer some additional security in case one or more were to go against us, we can use it as a moderately safe stock, but we would need to keep the total portfolio value of the 10 names that we follow around $100 million. At this figure, Graham-Newman Corp. equals 8% of our holdings (8/100) and is not likely to cause significant fluctuation in the overall portfolio level.
The industry has seen its ups and downs over time. During times of strong demand, producers are more likely to show better numbers than during weaker periods when prices tend to fall because of lower consumption levels. With GNRC controlling almost 90% of this market segment domestically – no other company comes close – there is definitely strength behind the business that will push earnings higher whenever circumstances improve for chicken farmers or processors.
Comcast: For those who are not yet aware, Comcast is a cable television and internet service provider. It has an overwhelming share in both markets with over 25% of Americans relying on it for their services; however, there were some changes recently when Netflix started offering its streaming video program without needing any extra hardware like smart TVs or other devices which makes them harder to avoid nowadays given how many homes have been equipped this way already!
The rise cell phone usage also took away from landline telephones but what helped keep them afloat was one thing: the Internet–because if you don’t use your data plan online then they charge $0/monthly rate (or lower). They are unavoidable at this point.
Comcast has also been expanding their business overseas which is why they have so many cash on hand, money being made in foreign lands too. The company has over $6 billion cash with only $3 billion in debt (with no restrictions on its use) and a net income of $2.4 billion during the first six months of 2014 alone! They also pay handsome dividends that would please any investor; however, we can’t own them until they rally back to what it should be doing instead of sitting around like North Korea waiting for instructions (that’s sarcasm BTW).
The company’s growth was not consistent until now but now it seems like there is some light behind the dark tunnel because Comcast got back into the game by offering a streaming video service that will be delivered as an app through smart phones, TV, and other devices. They could not beat Netflix at their own game but now they are going for a different demographic: those who don’t want to purchase cable packages because they couldn’t afford them or wanted to pick only the channels they wished to see from a list of options.
Just like with grocery store prices, Comcast is charging a flat fee for this product at $15/month irrespective of how many shows you watch. This way you have all your favorite programs inside one place instead of having 10 apps on your phone to run between them just so you can avoid paying monthly fees plus it gets rid of any advertisements too! The company is trying to make its transition away from cable TV more appealing by lowering costs for those who are willing to join the program.
The company is still heavily invested in cable television, but it has no debt on its books which is amazing considering how much cash it generates and pays out every quarter. The dividend yield sits around 1% and will likely grow with time as long as we don’t see any analysts calling for a massive price decrease anytime soon: nothing beyond 20-30% would do that so keep your eyes peeled if you want to own this company!
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.