Shareholders and Managements: Dividend Policy (MG Book Club Chapter 19)
This is the nineteenth discussion of the ModernGraham Book Club’s reading of The Intelligent Investor by Benjamin Graham. Even if you don’t have the book I think you will find our discussions to be very useful in your own understanding of value investing, and you can still bring a lot to the discussion from your own experiences as an investor.
Vertex Pharmaceuticals Annual Valuation – 2014 $VRTX
Vertex Pharmaceuticals does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor has major concerns with the lack of earnings stability over the last ten years, the lack of dividends, the insufficient earnings growth, and the high PEmg and PB ratios.
The TJX Companies Quarterly Valuation – June 2014 $TJX
The TJX Companies qualify for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned with the low current ratio and the high PB ratio, but the company passes all of the requirements of the Enterprising Investor.
17 Companies in the Spotlight This Week – 6/28/14
We evaluated 17 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. Here’s a summary of the ModernGraham Valuations.
The J.M. Smucker Company Quarterly Valuation – June 2014 $SJM
J.M. Smucker Company qualifies for the Enterprising Investor but not the Defensive Investor, who has concerns with the low current ratio and the high PEmg ratio. The Enterprising Investor’s only issue is with the high level of debt relative to the net current assets.
