What stocks are nearing
their intrinsic value targets, and / or have a decreasing margin of safety?
Any serious investor has some kind of
intrinsic value target in mind when buying a stock, and if / when it approaches that level, it can be terribly difficult holding on to the stock (esp.
In fact, a recent Barron's article gave it the oomph this week to blow past my latest
intrinsic value target of $ 13.41, and close up +11 % this week at $ 13.99.
I wonder whether or not Disney reached Buffetts
intrinsic value target at the time or he was satisfied with a 50 % return and decided to cash out.
Not exact matches
In fact, there's an argument to be made — as Dennis Berman does at the Wall Street Journal — that the Verizon bid for AOL says more about Verizon's difficulties than it does about any
intrinsic value that its
target might have.
Focus on
Value: By
targeting high - yielding securities at significant discounts to their
intrinsic values, we attempt to generate capital appreciation on top of high current income.
Target price is $ 50 and the stock trades at $ 40, but I think the
intrinsic value could be as much as $ 61.
The research team also examines the fundamental
value inherent in the
target's business to determine if the company is truly trading at a discount to its
intrinsic value.
Couple comments: *
Intrinsic value is a moving
target and even a schizophrenic herd gets it right more often than many people think.
Activists
target these undervalued, cash - rich companies, seeking to improve the
intrinsic value and close the market price discount by reducing excess cash through increased payout ratios.
This move would obviously reach / surpass my
Intrinsic Fair
Value target.
At this point, we're long past my original (earnings & cash based)
Intrinsic Fair
Value target, so it's only logical to opt for my Relative Fair
Value target (3.5 Price / Sales & Cash, based on comparable M&A multiples — which, frankly, I've never really understood — again, see my original TRIB post).
As a
value investor, I just can't stretch my Intrinsic Fair Value much higher (at the moment), but I'm confident an acquirer would pay up substantially in a potential takeover situation — which explains my secondary Relative Fair Value target of $ 1
value investor, I just can't stretch my
Intrinsic Fair
Value much higher (at the moment), but I'm confident an acquirer would pay up substantially in a potential takeover situation — which explains my secondary Relative Fair Value target of $ 1
Value much higher (at the moment), but I'm confident an acquirer would pay up substantially in a potential takeover situation — which explains my secondary Relative Fair
Value target of $ 1
Value target of $ 16.69.
Maybe you can improve your portfolio if you have a little spare cash hanging around by buying something on your watch list [that's right, you should be keeping a watch list, preferably with
target buy - in points based on some notion of
intrinsic value].
I've now upgraded my
Intrinsic Fair
Value target slightly to $ 13.41.
The concept was to cause changes in policy, management, or ownership in order to unlock hidden
value and close the gap between
intrinsic value of the
targeted company and the price of its» stock.
Our 12 - month
intrinsic value - based price
target is $ 152,000 for BRK.A and $ 101 for BRK.B, implying over 25 % upside.
I'm always amazed by investors who haven't even got a price
target for a stock they own, let alone any kind of
intrinsic value estimate!?]
** Trinity Biotech (TRIB: US) was updated in June (but only amounted to a 2 % increase in
intrinsic value), and
target valuations were recently added in Sep for US Oil & Gas (USOP) and Fastnet Oil & Gas (FAST: LN).
I say «reluctant» because of the discount to
Intrinsic Fair
Value, but also because I have a secondary price
target for TRIB.
Therefore, I suspect my
intrinsic value estimate wouldn't necessarily change very much at this point vs. my 2013/2014 price
targets.
But I expect most will take another look at the current
value gap, re-examine their own operating
target & scenario analyses, and a majority of shareholders will quickly recognize our proposals present a more certain & immediate road - map to realizing EIIB's quite obvious
intrinsic value.
Our private market
values, or estimates of the company's
intrinsic value, serve as de facto price
targets.