Straightforward, objective, comprehensive analysis as always. You do a great job at helping viewers find value in the market. You deserve more subscribers. Thx chuck.
I particularly appreciate these videos where you offer several good quality and well valued ideas to explore. I always feel more confidence for further research when i first hear you like a certain stock. Thank you.
@@anothermountainsrock135 Why? His portfolio should not be your portfolio as you have different needs and objectives. Like all investors, I'm sure Chuck has some stocks in his portfolio which he is delighted in and some that he is less happy with. It's more important to hear his opinions on individual stocks than to just have a list of everything he owns. Do you want to know about his bond investments also?
@@jamesdarnell8568 Transparency. He could be all invested in cannabis stocks for all we know. I just like to compare holding and weightings as a fellow investor looking into portfolio creation for clients.
@@jamesdarnell8568 thank you, I agree. The reason I do not share my portfolio with others is simply because my objectives may be entirely different than those that are reviewing it. As a portfolio manager I custom each portfolio I manage specifically to the needs and goals, objectives and risk tolerances of each individual. I do not believe there is a one-size-fits-all. Consequently, I believe it would be disingenuous to suggest that everything I owned should be owned by everyone else. On the other hand, when addressing individual stock each investor can or should be able to make that decision for themselves. Thanks again Chuck
@@HJ-ul1eg validating old decisions while giving new ideas. Nice. But id love to see his veiws on macro- even tho its not his thing. Some companies like Amgen have some headwinds that maybe the valuations dont really account for . I'm not sure whether initiating new positions in overvalued companies is better than adding to positions where I have a lower cost basis. Probably the tool addresses this.
It is really not the best to be investing in these types of companies when you are young. A 7-10% return per year is far, far worse than a 20%+ growth oriented return per year. I make articles on Seeking Alpha discussing the same concerns that Chuck does, just with growth oriented stocks. There is value to be had. It is also important not to get tainted by the last year or more with the incredible gains, it is mostly just margin expansion due to low interest rates. However, the longer you hold a growth stock, the less valuation is a concern. I will be discussing stocks here on my channel soon as well once I get my three core portfolios together soon. Best of luck.
@@anothermountainsrock135 why would a portfolio not be weighted in both with simply more growth oriented when young? I buy growth stocks at my old age. And have tracker shares on shares for the kids accounts for their timeline. But when I look at the companies I was interested in as a young guy... I'm not sure I would have been better off. I simply dont know. So I'm looking forward to seeing your portfolio.
Hi chuck, i am really looking forward to this new version of fast graphs. Being able to see it all laid out for me is a game changer. You and your team get a big thumbs up. This gives the average person a much need and better chance to make a big difference in their lives when it comes to investing. Thank you.
Chuck, I have been finding myself waiting to watch your videos every day! Love them. Discuss the upcoming New Fast Graphs and the Academy that is coming out?! In one of your last videos you mentioned a new academy.
Zachary: it's actually not a new academy it's the original F.A.S.T. Graphs™ Academy. The Academy will be free and will launch in concert with our upgraded version. 1 of the features will be that as we teach finance, we will direct with links the Academy students to specific FAST Graphs sections that will allow subscribers to FAST Graphs to implement what they learned. To be clear, Academy students will not be required or need to subscribe to FAST Graphs to learn and benefit. However, subscribers to FAST Graphs will have the added benefit of being able to implement what they learned in 1 concise and organized service.thanks for asking, Chuck
@@FASTgraphs wow that sounds amazing. I paused the video to respond on this post. I’m pretty sure you are going to have another satisfied customer right here! Can’t wait to give it a try!
I appreciate you and your content < Technical Analysis is good but I find It truly baffling that major crypto youtubers just look mostly at pure T.A and completely ignore the bigger narrative of why BTC is pumps/pumped and why the future outlook will be even rosier than it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps,narrowly avoiding a long-term bear market. More emphasis should be put into day trading as it is less affected by the unpredictable nature of the market. I have made over 12 btc from day tradng with Jeff Erno insights and charts.His been one step ahead of other analysis...
I am so delighted to see this testimonials about him. I also have been using his system for 3 weeks now and the result is mind blowing. I am not stopping anytime soon.
Don't miss out on an opportunity to grow your portfolio this year, Plan your investments with good portfolio manager like Jeff Erno and I can assure you that in few months your account will be more than you dream
I really enjoyed this video and own, and have profited from many you mentioned. Thank you for doing this and bringing to our attention current companies that look good at this time to own. It would be helpful to see a video on 20 stocks that should be considered to sell. You are Da Man!
Sometimes I don't try to beat the market. Mans as honest as they come. People want all the upside without the asymmetric downside. Can't be done. great video thank you
This channel and tool have helped my portfolio a lot. I agree INTC is risky but they generate a lot of cash and could buy back shares … but if the earnings fall the way analysts think it could get be a rough few years
Thank you for the video Chuck, I added a few to my watchlist. What do you think about Lowe’s and FedEx? They seem to be fairly valued compared to the market as a whole.
Thank you for this video. A lot of financial companies seem to be fairly valued or even undervalued. Along with buying some individual financial companies, would a financial sector ETF be good too?
I’ve been buying some value plays like INTC, but it’s still hard investing right now, knowing that a correction will bring most everything even lower. Buffet is always in the back of my head….”Be fearful when others are greedy”, and “You don’t have to swing at every pitch”. I love that last one. Keeps me patient.
I would say in timed steps at fairly equal amounts, at whatever timing and amount you feel comfortable with. And only when you have well researched cos. to transition to. My ratio has been determined by my account types. Almost all of my 401-k is in an index fund/ETF. My IRA's are in individual cos. No bonds at all- my bond equivalents are pension, SS, and timed draw down of my 401-k..
Keep it simple and invest in index funds. I know it's boring. Don't get sucked into this videos unless you just plan to but a few just for the fun of it.
Video Request: I considered all the channels I subscribed to and decided to ask you, because you do such a great job of explaining things. Here it is: I understand that buying stock is giving me ownership in a company. But what happens to that money from buying stock? It's not part of the company's income, not part of distributions, etc. Does the company receive money from the sale of stocks, and uses it for Payroll? For expanding operations... how is it kept separate from income, ROI, etc? I've had the understanding that for me to buy 1 share, there's gotta be someone willing to sell a share. What happens at IPO? At IPO, if no one owns any shares yet, who is selling that first share? How is the price of a share of stock determined, minute by minute... outstanding versus..? I have some understanding of bits and pieces, but missing some connections to understand the full picture. I think this would make a great video about the basics of basics. Thanks in advance.
Delliott777, Thanks for the question, let me see if I can explain it clearly. A company issues stock in order to raise capital to fund the operation of its business. Private companies can do this and when companies go public with an IPO (initial public offering) they are also doing this. Additionally, companies that already raised capital can raise more capital through secondary stock offerings. Nevertheless, any time the company is selling stock directly to the public, the money that is raised goes directly to the company to use in order to run their business. This would include things like building factories, opening stores, hiring people and any other activity required for them to conduct business. Additionally, once an individual has purchased the stock from an initial offering, they are free to sell that stock to anyone else if they so choose. They can do this privately. For example if I owned Apple and you wanted to buy Apple you could come to me directly and I can sell you my shares. However that would be very inefficient because you would have to know that I owned Apple. As a result, stock exchanges were created that brings buyers and sellers together. To be clear, when you buy stock from your friendly stockbroker on for example, the New York Stock Exchange you are actually buying that stock from another individual shareholder owner. In this case, the company doesn’t get the money the money goes directly to the person that sold you the stock. I hope this clears it up for you. Regards, Chuck
Thank you Chuck. I really enjoyed watching your video because I can learn a lot of correct investment ideas from your analysis. I am looking forward to joining your Academy when it’s launched. Cheers. Your Video Followers from Taiwan.
ivaN: Amgen was covered separately last week : ruclips.net/video/iBZOVa3S3r4/видео.html However,as I explained in the intro to the video, I only included companies that had that less than 50%. Bristol-Myers was a minor exception at 52% regards, Chuck
Owen: are you talking about HPQ Hewlett-Packard. The symbol HP is Helmerich & Payne which would not make the list. Hewlett-Packard only has a credit rating of BBB+ which would keep it from making the list.
Great video! Were you able to perform the search for EPS, A rated, dividend yield and debt to equity within FastGraphs or did you perform that screen elsewhere? It would be a wonderful video to showcase the screener within FastGraphs if you did the screen there. Keep the videos coming! :)
Pietros Maneos Finance: I screened for those utilizing FAST Graphs primarily by looking at the 14 preloaded portfolios and then sorting them by credit rating. Once I did that, I simply look for earnings yields above 6 1/2%. However, I can also utilize the screener within FG, but I find utilizing the portfolios for simple screens easier and quicker. But both methodologies work fine. Regards, Chuck
@@FASTgraphs - I just joined FASTgraphs this morning and am very excited to use it. I do have one question - is there a prebuilt screen that showcases the stocks with the most built-in margin of safety related to normal P/E-Graham P/E? I didn't see this in the 'Screening' or 'Portfolio' section. This would be like Buffett's original 'cigar-puffs,' i.e. stocks that are DEEPLY DISCOUNTED to the orange and blue lines.
Not always. Merck was overvalued most of the time since 2013 until 2019 as you can see easily on Fastgraphs and Bristol-Myers Squibb traded around PE 30 few years ago. So its not a big discount but still combination of expected growth and high dividend yield makes it very attractive. And its the biggest and highest quality pharmaceutical company with A+ rating so blended PE 13 is quite good for Merck.
GM Chuck, got a question what calculations are being used for EPS Yield.. when i do the calculations im not getting the same yield as u are…. EPS (TTM) diluted / current share price.. thanks
For example MRK EPS TTM diluted is around 2.19/76.72 gives u 2.85 eps yield.. based on your numbers EPS should be 5.70…. Where is that number coming from?
@@pmpedros Paulo: There are several nuances to answer your question correctly. For starters, I am not using diluted earnings. Instead, I am utilizing adjusted operating earnings also often referred to as reported or normalized. However, FAST Graphs does provide the options to utilize diluted or GAAP earnings as well as basic earnings. Secondly, I do not utilize ttm trailing 12 months numbers, instead we utilize what is called a blended P/E ratio. Here is a link to our full explanation of what that is and why we use it: www.fastgraphs.com/blog/documentation/blended-p-e/ As a quick summary, I like to point out that there is no such thing as accurate earnings. Trailing 12 month earnings are typically stale because it usually takes a company 45 days after the close of a fiscal quarter to report earnings. Therefore, the actual earnings as reported are at least ½ ¼ old or longer. In contrast, the blended P/E ratio that we use is technically not accurate either, we do believe that it is hopefully more accurate though. The blended P/E is calculated based on past, present and the nearest forecast earnings. The easiest way for you to understand this would be to solve for the earnings (the E in the equation) earnings yield is the inverse of the P/E ratio or the E/P ratio. Using yesterday’s closing numbers FG shows Merck with a blended P/E ratio of 13.73 in a closing price of $76.72. To solve for earnings we simply divide the price $76.72 by the P/E ratio of 13.73 and you get earnings of $5.587 or rounded to $5.59. If you look at the bottom of the graph you will see that last year’s earnings were $5.66 and this year’s forecast is for $5.54. Yes, they are estimating Merck’s earnings to drop this year. Nevertheless, the $5.59 is between $5.66 and $5.54. This is more than trailing 12 months operating earnings and takes into consideration the expected lower earnings estimate of $5.54. Consequently, if you divide the $5.59 earnings divided by the $76.72 stock price you get an earnings yield of 7.28% as we report. However, if you did utilize DILUTED EARNINGS via FG we also use a blended earnings approach for that metric. As a result, the earnings yield using deluded blended would be 4.8% not 7.28. The moral of the story is depends on what metric you are utilizing and whether you are utilizing past earnings or in some sites use forward earnings or in our case a blend of the 2. I hope that clarifies it for you. Regards, Chuck
Thanks for this informative video, definitely gave me some ideas! As a US investor, are there taxes benefits when I purchase MFC in a Roth IRA versus taxable account? Thank you sir.
Hi Chuck, can you send me a valuation for jefferies ? I want to buy the stock for Dividends but in my german tool can not see the price to valuation. Thanks !!!
dagobert76: I think it's important to point out that Jeffries is a very cyclical stock and frankly I see little correlation between any fundamental metric and its stock price. Statistically it is cheap but unfortunately it is not the kind of company that I would be interested in evaluating, it is too erratic and unpredictable for my taste. Sorry, but I have to be authentic with my response. Regards, Chuck
since the s&p 500 at the moment has a high allocation to tech, big tech and other high PE stocks I think it is fair to say the "normal" PE now should be higher than it used to be. I still think it's very overvalued even considering the totally changed composition
![BLACK BAG - Official Trailer [HD] - Only in Theaters March 14](http://i.ytimg.com/vi/Du0Xp8WX_7I/mqdefault.jpg)
Straightforward, objective, comprehensive analysis as always. You do a great job at helping viewers find value in the market. You deserve more subscribers. Thx chuck.
I particularly appreciate these videos where you offer several good quality and well valued ideas to explore. I always feel more confidence for further research when i first hear you like a certain stock. Thank you.
Agree, wish he covered his current holdings more though. He needs to show his whole portfolio!
Me, too.
@@anothermountainsrock135 Why? His portfolio should not be your portfolio as you have different needs and objectives. Like all investors, I'm sure Chuck has some stocks in his portfolio which he is delighted in and some that he is less happy with. It's more important to hear his opinions on individual stocks than to just have a list of everything he owns. Do you want to know about his bond investments also?
@@jamesdarnell8568 Transparency. He could be all invested in cannabis stocks for all we know. I just like to compare holding and weightings as a fellow investor looking into portfolio creation for clients.
@@jamesdarnell8568 thank you, I agree. The reason I do not share my portfolio with others is simply because my objectives may be entirely different than those that are reviewing it. As a portfolio manager I custom each portfolio I manage specifically to the needs and goals, objectives and risk tolerances of each individual. I do not believe there is a one-size-fits-all. Consequently, I believe it would be disingenuous to suggest that everything I owned should be owned by everyone else. On the other hand, when addressing individual stock each investor can or should be able to make that decision for themselves. Thanks again Chuck
Chuck, your videos are truly helping young investors like myself to make sound investments. Thank you
And us gray haired ones as well.
And the ones in-between!
@@HJ-ul1eg validating old decisions while giving new ideas. Nice. But id love to see his veiws on macro- even tho its not his thing. Some companies like Amgen have some headwinds that maybe the valuations dont really account for . I'm not sure whether initiating new positions in overvalued companies is better than adding to positions where I have a lower cost basis. Probably the tool addresses this.
It is really not the best to be investing in these types of companies when you are young. A 7-10% return per year is far, far worse than a 20%+ growth oriented return per year. I make articles on Seeking Alpha discussing the same concerns that Chuck does, just with growth oriented stocks. There is value to be had. It is also important not to get tainted by the last year or more with the incredible gains, it is mostly just margin expansion due to low interest rates. However, the longer you hold a growth stock, the less valuation is a concern. I will be discussing stocks here on my channel soon as well once I get my three core portfolios together soon. Best of luck.
@@anothermountainsrock135 why would a portfolio not be weighted in both with simply more growth oriented when young? I buy growth stocks at my old age. And have tracker shares on shares for the kids accounts for their timeline. But when I look at the companies I was interested in as a young guy... I'm not sure I would have been better off. I simply dont know. So I'm looking forward to seeing your portfolio.
5th... Chuckster the best! Always looking forward to your videos
I just want to say thanks for all that you do you are by far my favorite financial RUclipsr
Justin: REALLY APPRECIATE YOUR SAYING THAT.
I agree. Granted.... Most of them are millennials screaming, "to the moon!" The Chuckster has something they lack.... Gravitas.
This is the best content for dividend growth investors I've found
This tool has saved me from making so many bad decisions. Great video, God bless
Hi chuck, i am really looking forward to this new version of fast graphs. Being able to see it all laid out for me is a game changer. You and your team get a big thumbs up. This gives the average person a much need and better chance to make a big difference in their lives when it comes to investing. Thank you.
Big fan here. Wonder if are there any coupon code for yearly premium at the moment?
Chuck, I have been finding myself waiting to watch your videos every day! Love them. Discuss the upcoming New Fast Graphs and the Academy that is coming out?! In one of your last videos you mentioned a new academy.
Zachary: it's actually not a new academy it's the original
F.A.S.T. Graphs™ Academy. The Academy will be free and will launch in concert with our upgraded version. 1 of the features will be that as we teach finance, we will direct with links the Academy students to specific FAST Graphs sections that will allow subscribers to FAST Graphs to implement what they learned. To be clear, Academy students will not be required or need to subscribe to FAST Graphs to learn and benefit. However, subscribers to FAST Graphs will have the added benefit of being able to implement what they learned in 1 concise and organized service.thanks for asking, Chuck
@@FASTgraphs wow that sounds amazing. I paused the video to respond on this post. I’m pretty sure you are going to have another satisfied customer right here! Can’t wait to give it a try!
I appreciate you and your content < Technical Analysis is good but I find It truly baffling that major crypto youtubers just look mostly at pure T.A and completely ignore the bigger narrative of why BTC is pumps/pumped and why the future outlook will be even rosier than it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps,narrowly avoiding a long-term bear market. More emphasis should be put into day trading as it is less affected by the unpredictable nature of the market. I have made over 12 btc from day tradng with Jeff Erno insights and charts.His been one step ahead of other analysis...
His Te-le-gr am ( @Jefferno7 )
Bitcoin trading can be risky business but not with a professional help and i get mine from Jeff Erno
I am so delighted to see this testimonials about him. I also have been using his system for 3 weeks now and the result is mind blowing. I am not stopping anytime soon.
Don't miss out on an opportunity to grow your portfolio this year, Plan your investments with good portfolio manager like Jeff Erno and I can assure you that in few months your account will be more than you dream
The best feeling is knowing you're going to make a gain today and tomorrow, and you're 100% sure, Jeff trade, you're a Genius
Great overview! Awesome ideas for research. I'm all in for becoming a Fastgraph Ambassador! Keep up the great work. All the best,
Stoyan
Love it. Thank you, sir!
Great video Chuck; don't mind the length. Its well worth my time.
Great video - Thanks Mr. Chuck Carnevale
I really enjoyed this video and own, and have profited from many you mentioned. Thank you for doing this and bringing to our attention current companies that look good at this time to own. It would be helpful to see a video on 20 stocks that should be considered to sell. You are Da Man!
Thanks for this list! I subscribed to your channel, I placed these stocks of my watch list
Thanks for thoroughly explaining your criteria! I feel like that's the missing piece of a lot of stock market related videos.
Thank you, Chuck!
Another great video Chuck! Thanks for the education
Sometimes I don't try to beat the market. Mans as honest as they come. People want all the upside without the asymmetric downside. Can't be done. great video thank you
Bravo Maestro Valuation!
Thank you Chuck, always enjoy your videos.
Hi Chuck. Can you do a video of the top 10 dividend aristocrat stocks based on dividend and value? Thank you.
Thank you so much for your time and expertise, it's greatly appreciated. I would love to see you review or update EPD. Thanks again.
This channel and tool have helped my portfolio a lot. I agree INTC is risky but they generate a lot of cash and could buy back shares … but if the earnings fall the way analysts think it could get be a rough few years
Thank you for the video Chuck, I added a few to my watchlist. What do you think about Lowe’s and FedEx? They seem to be fairly valued compared to the market as a whole.
Great video as always. Thank you
Fantastic stuff thank you! I'll be back on the regular for more info!
Thank you for this video. A lot of financial companies seem to be fairly valued or even undervalued. Along with buying some individual financial companies, would a financial sector ETF be good too?
Thanks Chuck. Long time user of FastGraph and awaiting the new version, but only when it is ready!
Thanks Michael keep your fingers crossed coming soon. Regards, Chuck
I’ve been buying some value plays like INTC, but it’s still hard investing right now, knowing that a correction will bring most everything even lower. Buffet is always in the back of my head….”Be fearful when others are greedy”, and “You don’t have to swing at every pitch”. I love that last one. Keeps me patient.
INTC is cheap but not value becauce of the lack of growth. At least if analysts are correct.
I have decided to move from predominantly ETFs towards individual value stocks because of these videos. Any advice on how to transition?
I am 70% ETF, 30% shares. It's about right for me. I get what you saying though.
I would say in timed steps at fairly equal amounts, at whatever timing and amount you feel comfortable with. And only when you have well researched cos. to transition to. My ratio has been determined by my account types. Almost all of my 401-k is in an index fund/ETF. My IRA's are in individual cos. No bonds at all- my bond equivalents are pension, SS, and timed draw down of my 401-k..
Keep it simple and invest in index funds. I know it's boring. Don't get sucked into this videos unless you just plan to but a few just for the fun of it.
Thanks a lot
Thank you Chuck.
I dont mind longer videos, im learning so much!
I listened to your rationalizations based on yield and think one could do much better with any other justifications. Just pick the right companies.
Great video
Thank you Chuck, you rock.
Video Request: I considered all the channels I subscribed to and decided to ask you, because you do such a great job of explaining things. Here it is:
I understand that buying stock is giving me ownership in a company. But what happens to that money from buying stock? It's not part of the company's income, not part of distributions, etc. Does the company receive money from the sale of stocks, and uses it for Payroll? For expanding operations... how is it kept separate from income, ROI, etc?
I've had the understanding that for me to buy 1 share, there's gotta be someone willing to sell a share. What happens at IPO? At IPO, if no one owns any shares yet, who is selling that first share?
How is the price of a share of stock determined, minute by minute... outstanding versus..?
I have some understanding of bits and pieces, but missing some connections to understand the full picture.
I think this would make a great video about the basics of basics.
Thanks in advance.
Delliott777,
Thanks for the question, let me see if I can explain it clearly. A company issues stock in order to raise capital to fund the operation of its business. Private companies can do this and when companies go public with an IPO (initial public offering) they are also doing this. Additionally, companies that already raised capital can raise more capital through secondary stock offerings. Nevertheless, any time the company is selling stock directly to the public, the money that is raised goes directly to the company to use in order to run their business. This would include things like building factories, opening stores, hiring people and any other activity required for them to conduct business.
Additionally, once an individual has purchased the stock from an initial offering, they are free to sell that stock to anyone else if they so choose. They can do this privately. For example if I owned Apple and you wanted to buy Apple you could come to me directly and I can sell you my shares. However that would be very inefficient because you would have to know that I owned Apple. As a result, stock exchanges were created that brings buyers and sellers together.
To be clear, when you buy stock from your friendly stockbroker on for example, the New York Stock Exchange you are actually buying that stock from another individual shareholder owner. In this case, the company doesn’t get the money the money goes directly to the person that sold you the stock. I hope this clears it up for you. Regards, Chuck
@@FASTgraphs Awesome! I wish I knew you 20 years ago... I really appreciate you taking the time to explain this. You da man.
Thank you Chuck. I really enjoyed watching your video because I can learn a lot of correct investment ideas from your analysis. I am looking forward to joining your Academy when it’s launched. Cheers. Your Video Followers from Taiwan.
Thank you
No AMGN ?
ivaN: Amgen was covered separately last week : ruclips.net/video/iBZOVa3S3r4/видео.html
However,as I explained in the intro to the video, I only included companies that had that less than 50%. Bristol-Myers was a minor exception at 52% regards, Chuck
Thanks, Chuck!
Are there other indices available in FAST Graphs? I mean other symbols like ^SPX?
imba: not currently. However, shortly after we launch the new version we will be adding ETF index data. So coming soon,, regards, Chuck
@@FASTgraphs What about Dow 30 and Nasdaq? Im sure you show them already in some of your videos.
Great content
What's your thoughts on HP atm chuck? I thought it would make the list
Owen: are you talking about HPQ Hewlett-Packard. The symbol HP is Helmerich & Payne which would not make the list. Hewlett-Packard only has a credit rating of BBB+ which would keep it from making the list.
@@FASTgraphs ah OK. Yeah I was meaning HPQ, thanks for responding. Great video
Best video to watch
Great video! Were you able to perform the search for EPS, A rated, dividend yield and debt to equity within FastGraphs or did you perform that screen elsewhere? It would be a wonderful video to showcase the screener within FastGraphs if you did the screen there. Keep the videos coming! :)
Pietros Maneos Finance: I screened for those utilizing FAST Graphs primarily by looking at the 14 preloaded portfolios and then sorting them by credit rating. Once I did that, I simply look for earnings yields above 6 1/2%. However, I can also utilize the screener within FG, but I find utilizing the portfolios for simple screens easier and quicker. But both methodologies work fine. Regards, Chuck
@@FASTgraphs - Thanks so much. I am going to be subscribing to FastGraphs in the next month or so. You are such a resource for my investing. 😀
@@FASTgraphs - I just joined FASTgraphs this morning and am very excited to use it. I do have one question - is there a prebuilt screen that showcases the stocks with the most built-in margin of safety related to normal P/E-Graham P/E? I didn't see this in the 'Screening' or 'Portfolio' section. This would be like Buffett's original 'cigar-puffs,' i.e. stocks that are DEEPLY DISCOUNTED to the orange and blue lines.
Pharma always seems to trade at a fairly low PE relative to the market, so 14 for Merck doesn’t seem inexpensive.
Not always. Merck was overvalued most of the time since 2013 until 2019 as you can see easily on Fastgraphs and Bristol-Myers Squibb traded around PE 30 few years ago. So its not a big discount but still combination of expected growth and high dividend yield makes it very attractive. And its the biggest and highest quality pharmaceutical company with A+ rating so blended PE 13 is quite good for Merck.
So many financials on sale. I can’t add more new positions due to diversification but will continue adding to PRU and AFL.
Cheap for a reason. Low interest rates.
GM Chuck, got a question what calculations are being used for EPS Yield.. when i do the calculations im not getting the same yield as u are…. EPS (TTM) diluted / current share price.. thanks
For example MRK EPS TTM diluted is around 2.19/76.72 gives u 2.85 eps yield.. based on your numbers EPS should be 5.70…. Where is that number coming from?
@@pmpedros Paulo: There are several nuances to answer your question correctly. For starters, I am not using diluted earnings. Instead, I am utilizing adjusted operating earnings also often referred to as reported or normalized. However, FAST Graphs does provide the options to utilize diluted or GAAP earnings as well as basic earnings. Secondly, I do not utilize ttm trailing 12 months numbers, instead we utilize what is called a blended P/E ratio. Here is a link to our full explanation of what that is and why we use it: www.fastgraphs.com/blog/documentation/blended-p-e/
As a quick summary, I like to point out that there is no such thing as accurate earnings. Trailing 12 month earnings are typically stale because it usually takes a company 45 days after the close of a fiscal quarter to report earnings. Therefore, the actual earnings as reported are at least ½ ¼ old or longer.
In contrast, the blended P/E ratio that we use is technically not accurate either, we do believe that it is hopefully more accurate though. The blended P/E is calculated based on past, present and the nearest forecast earnings. The easiest way for you to understand this would be to solve for the earnings (the E in the equation) earnings yield is the inverse of the P/E ratio or the E/P ratio. Using yesterday’s closing numbers FG shows Merck with a blended P/E ratio of 13.73 in a closing price of $76.72.
To solve for earnings we simply divide the price $76.72 by the P/E ratio of 13.73 and you get earnings of $5.587 or rounded to $5.59. If you look at the bottom of the graph you will see that last year’s earnings were $5.66 and this year’s forecast is for $5.54. Yes, they are estimating Merck’s earnings to drop this year. Nevertheless, the $5.59 is between $5.66 and $5.54. This is more than trailing 12 months operating earnings and takes into consideration the expected lower earnings estimate of $5.54.
Consequently, if you divide the $5.59 earnings divided by the $76.72 stock price you get an earnings yield of 7.28% as we report. However, if you did utilize DILUTED EARNINGS via FG we also use a blended earnings approach for that metric. As a result, the earnings yield using deluded blended would be 4.8% not 7.28.
The moral of the story is depends on what metric you are utilizing and whether you are utilizing past earnings or in some sites use forward earnings or in our case a blend of the 2. I hope that clarifies it for you. Regards, Chuck
@@FASTgraphs Thanks for the explanation greatly appreciated. love the software
Franklin is nice one 4 the Dividendes or ?!
Thanks for this informative video, definitely gave me some ideas! As a US investor, are there taxes benefits when I purchase MFC in a Roth IRA versus taxable account? Thank you sir.
A ROTH account should be the first place you should invest after contributing 100% of what your company will match in a 401k
Hi Chuck, can you send me a valuation for jefferies ? I want to buy the stock for Dividends but in my german tool can not see the price to valuation. Thanks !!!
dagobert76: I think it's important to point out that Jeffries is a very cyclical stock and frankly I see little correlation between any fundamental metric and its stock price. Statistically it is cheap but unfortunately it is not the kind of company that I would be interested in evaluating, it is too erratic and unpredictable for my taste. Sorry, but I have to be authentic with my response. Regards, Chuck
@@FASTgraphs thanks for your answer from Germany
since the s&p 500 at the moment has a high allocation to tech, big tech and other high PE stocks I think it is fair to say the "normal" PE now should be higher than it used to be. I still think it's very overvalued even considering the totally changed composition
Don't sell Intel. Great future ahead. Just check their R&D, and the political value of a Western chip producer. 60-80$ Stock within 4 years.
I agree with you! Will buy more when it drops!
Truist (TFC) was formed in December 2019 as a result of the merger of BB&T and SunTrust Banks, two smaller regional banks.
Gregory thanks for sharing that info, it was helpful. Regards, Chuck
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Just buy companies that that have no competition.
As easy as that. Lol
Not really extremly high quality.
Not really a high quality supported statement