eBay appears to be a very solid company that should intrigue value investors that classify themselves as Enterprising Investors. The company does not qualify for the Defensive Investor due to the current ratio not quite reaching the 2.0 requirement, the lack of dividend payments, and the high PEmg and PB ratios.
Archives for January 2014
Dominion Resources, Inc. does not qualify for the Defensive Investor or the Enterprising Investor. Like most utilities, it has a poor current ratio, so it must pass the remaining requirements for the Defensive Investor, but in this case the growth over the ten year period has been insufficient, the PEmg ratio is too high, and the PB ratio is too high.
There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected five of the most undervalued companies reviewed by ModernGraham. Each company has been determined to be suitable for Defensive Investor according to the ModernGraham approach. This is a sample of one screen that is included in
Abbvie appears to be a company with prospects for becoming suitable for the Enterprising Investor in a few more years; however, at this time it is not suitable for either the Defensive Investor or the Enterprising Investor. Intelligent Investors following the ModernGraham approach based on Benjamin Graham’s methods are very cautious investors, and choose to rely only on the most accurate data possible.
CA Technologies looks very good in the ModernGraham approach based on Benjamin Graham’s methods for value investors. The company passes the requirements of the Defensive Investor, failing only the current ratio requirement, and as a result is suitable for both Defensive Investors and Enterprising Investors.