10 Low PE Stocks with the Biggest Estimated Earnings Growth Over the Next 5 Years

by Fred Fuld III

Many investors, along with money managers, and hedge funds, take into consideration many factors when looking for stocks to invest in over the long term.

These can include such things as the trailing and future price to earnings ratio, the price to earnings brother ratio, and even if the stock pays a dividend.

One feature that some investors like to see is a strong estimated earnings per share growth rate over the next five years.

The following is a list of stocks that have all of those characteristics and even more.Here is what the stocks have in common:

  • Market cap of over $10 billion
  • Trailing P/E ratio less than 15
  •  Forward P/E ratio less than 15
  • PEG ratio less than 1
  • Earnings per share growth over the next 5 years over 25%
  • Pay a dividend
  • US based companies

Here is the list of all the companies that meet the above requirements:

Company Symbol Market Cap P/E
Ally Financial Inc. ALLY 10.81B 4.16
Ameriprise Financial, Inc. AMP 25.64B 8.97
APA Corporation APA 10.69B 4.56
Discover Financial Svcs DFS 26.57B 5.76
Ford Motor Company F 43.71B 3.89
LKQ Corporation LKQ 14.02B 13.44
Nucor Corporation NUE 27.85B 3.78
Ovintiv Inc. OVV 10.19B 12.22
Steel Dynamics, Inc. STLD 12.14B 3.32
Synchrony Financial SYF 13.84B 3.87
Westlake Corporation WLK 12.11B 4.87

Ten stocks were promised, but an additional one is included.

Disclosure: Author owns Ford (F).

Books Recommended by Tim Knight, the TastyTrade Stock Chartist

by Fred Fuld III

Anyone who watches the online financial network TastyTrade, which was founded by Tom Sosnoff, knows who Tim Knight is.

Tim Knight is the stock chartist who appears every day on TastyTrade’s Trading the Charts with Tim Knight for only 15 minutes, at 12:15 p.m. Pacific, 2:15 p.m. Central, and 3:15 p.m. Eastern time.

In addition, he is the founder of the SlopeOfHope website, which covers  stocks, options, oil gold, the economy, the Fed, and many other topics.

Knight is also an author of many books. In his show today, he mentioned several books that he recommends, including a few that he wrote himself. Here they are:

The World Connection was Knight’s first book, written when he was 16, and predicted such things as talking to people through computers, online banking, and ordering tickets online.

Timing the Market: How to Profit in Bull and Bear Markets with Technical Analysis by Curtis Arnold covers using technical analysis to trade in the stock, bond and commodity markets.

Technical Analysis of Stock Trends by Robert D. Edwards, John Magee, and W. H. C. Bassetti provides information on making profitable trading decisions by utilizing  proven long- and short-term stock trend analysis.

Chart Your Way To Profits: The Online Trader’s Guide to Technical Analysis is one that Tim Knight authored. It is based around the ProphetCharts software that he created.

Panic, Prosperity, and Progress is one of Tim Knight’s more recent books. It is about the financial panics during the last five centuries.

The Fourth Turning: An American Prophecy – What the Cycles of History Tell Us About America’s Next Rendezvous with Destiny by William Strauss and Neil Howe is a book that Knight highly recommends. It shows how history moves in cycles and predicts what may happen in the future.

Happy reading!

 

 

 

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Have You Ever Thought About Investing in Dinosaur Bones?

by Fred Fuld III

Do you like collecting old stuff? Do you have any interest in putting your money into alternative exotic investments? Then how about investing in a 76 million-year-old dinosaur skeleton?

Now is your chance. The auction house Sotheby’s will be auctioning off the skeleton of a Gorgosaurus dinosaur on July 28, 2022 in New York City.

This 22 feet long and 10 feet high skeleton is estimated to be hammered at between $5 million and $8 million.

 

How About Investing in Elvis Presley’s House?

Elvis Presley House - Rockhurst Auctions
Elvis Presley House – Credit: Rockhurst Auctions

by Fred Fuld III

Everyone knows who Elvis Presley is, the King of Rock and Roll. So how would you like to own his three-bedroom, 1,260-square-foot house where he lived during 1943 and 1944, with a possible price of less than $50,000?

Elvis Presley Jailhouse Rock
Elvis Presley Jailhouse Rock – Credit: Wikipedia

Yes, it’s possible. The house that Elvis lived in with his parents, Vernon and Gladys Presley, is going to be auctioned off by Rockhurst Auctions, on Sunday, August 14, 2022, at the  Holiday Inn at 3411 Elvis Presley Blvd., in Memphis, Tennessee.

Elvis
Elvis – Credit: Wikipedia

The house was originally located at 1241 Kelly Street, in East Tupelo, Mississippi. It was carefully dismantled and preserved, ready to be rebuilt. The dismantling was videotaped, and the house is currently stored in a trailer, which is included as part of the auction.

The estimate is between $30,000 and $50,000 with a starting price f $25,000.

What a great casita this would be to reconstruct in the back yard of an Elvis fan.

Almost a hundred other Elvis artifacts will also be offered at the auction.

Elvis has left the building.

Worst Performing SPACs: Are They Dead or Will They Rebound?

by Fred Fuld III

A SPAC is a Special Purpose Acquisition Company, also known as a blank check company. It is a company created specifically to raise money as a publicly traded company in order to finance a merger or acquisition opportunity within a set timeframe, usually two years.

They have no operations but go public with the intention of merging with or acquiring a company with the proceeds that were raised from the SPAC’s initial public offering. The SPACs are generally sold at $10 a share or often in $10 units which includes of one share of common stock and one or more out-of-the-money warrants or a fraction of a warrant. The units, stocks, and warrants usually start trading on either the NYSE or NASDAQ.

Probably the most famous SPAC (which no one remembers the original name of but most remember the new name after the merger) was Social Capital Hedosophia (former symbol: IPOA). This is the company that merged with Richard Branson’s Virgin Galactic (SPCE), the space travel company.

Unfortunately for most investors who invested in these SPACs, the investment hasn’t turned out well, especially when measured from the stock’s high to todays price. Many came out at $10, then started dropping and never looked back. Other SPACs jumped way up in price, then later tanked way below the original $10.

For example, Romeo Power (RMO), a southern California manufacturer of lithium ion battery modules, came out at $10 a unit. Some poor soul paid 38.90 a share right after Christmas in 2020. What a Christmas present.

The stock is now trading at 44 cents a share. This is a drop of 98.9% in share price.

Another example is a company called Ucommune International Ltd (UK), a provider of agile office spaces in China. An investor paid 241.40 a share on a split adjusted basis a couple weeks before Thanksgiving in 2020. Happy Thanksgiving. The stock is now 3.71 per share, a drop of 98.2%.

To explain how the split worked on this stock, there was a 1 for 20 split on April 22, 2022. That means that if you had 100 shares to start with, you would end up with only 5 shares. So the investor who paid the high price, if had a 100 shares, actually would have paid 12.06 per share, for a total of $1206. However, after the split, he would have only 5 shares at 3.71 per share, or a total value of only $18.55.

So here is a list of SPACs that have fallen dramatically.

SYMBOL LOSS
RMO 98.9%
UK 98.2%
LOTZ 96.6%
MILE 95.4%
DAVE 95.1%
UPH 94.8%
RIDE 94.5%
SFT 93.9%
IRNT 93.0%
NKLA 92.8%
MNTS 92.2%
GOEV 90.7%
GMTX 90.4%
SPCE 88.6%
ATIP 88.3%
MAPS 88.3%
VIEW 86.9%
ME 85.4%
LVOX 84.7%
BBAI 70.6%
MYPS 64.6%

Disclosure: Author didn’t own any of the above at the time the article was written.

Stocks Selling for Less than Cash per Share

by Fred Fuld III

During the last six months, the stock market has taken a tumble, with the S&P 500 down almost 20% year-to-date.

Some investors and traders are now looking for bargains, hoping for a short term or even a long term bounce.

So how do you go about choosing a stock to buy in these volatile times? One strategy is to look for stocks that are not only selling below their book value, but also below their cash per share, especially if the company has low or no debt.

The cash per share is the amount of money that would be distributed for each share if the company went out of business today. In other words, if all the other company’s assets were totally worthless, how much would shareholders receive for each share, just from the cash in the bank the company has.

So if you can buy the stock for less than the cash per share, you should be getting a fairly good deal, not counting other factors.

If the company is also profitable, that is another benefit.

The following are four stocks with have low or no debt, are trading below the cash per share, and are profitable with price to earnings ratios below 32. As a matter of fact, three of the companies have P/E ratios below 15. All of the following are low cap or extremely low cap, so should be considered very, very speculative.

Atea Pharmaceuticals, Inc. (AVIR), with a market cap of $577.00 million,  is a biopharmaceutical company, which is involved in the development of antiviral therapeutics for patients suffering from viral infections. The stock has a reasonable P/E of 14.02, debt amounting to 2.88 million, and is currently selling for 17% below its cash per share.

Rubicon Technology, Inc. (RBCN) is an Illinois based company, involved in the production of monocrystalline sapphire for applications in optical and industrial systems. It has a market cap of $22.61 million. The P/E ratio is 30.63 and the company has no debt. It is selling for 15% below cash.

Sesen Bio, Inc. (SESN), based in Cambridge, Massachusetts, develops  targeted fusion protein therapeutics for the treatment patients with cancer.  The market cap is $163.72 million and the P/E is 3.23. The company only has $100,000 in debt.  The stock is selling at 4% below cash.

SunLink Health Systems, Inc. (SSY) is a provider of healthcare products and services, and is based in Atlanta, Georgia. It has an extremely low, and therefore extremely speculative, market cap of only $7 million. The P/E is 1.47  and the amount of debt is $1.31 million. The stock is selling for 1% below cash.

As previously mentioned, all these stocks should be considered extremely speculative. Remember, often stocks sell for a very low price for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written. No investment recommendations are expressed or implied. 

Invest in a Scottish Island with a Castle: Become a Lord

by Fred Fuld III

Have you ever wanted to own your own island? Hav you ever wanted to own your own castle? Have you ever wanted to have a title of Lord (Laird)?

How would you like to have all of the above? Well you can. An island, The Isle of Vaila, located in Walls, Shetland, Scotland, is for sale.

Isle of Vaila - Savills
Isle of Vaila – Savills

The price? Offers over $2,146,288 are being considered. The island is being offered by Savills in Edinburgh.

Here is what you get as part of the purchase price:

  • Approximately 757 acres
  • A 17th century castellated mansion with 4 reception rooms and 6 bedrooms
  • A 3 bedroom farmhouse
  • A 2 bedroom caretaker’s cottage
  • 18th century watchtower

This island, with beautiful views, has a private shore base into a sheltered bay with a pier.

Isle of Vaila - Savills
Isle of Vaila – Savills

The mansion/castle has four reception rooms and is furnished with the original late 1800s furniture.

So you get an island, a castle, and because the word “Lord” or “Laird” is  generally used to refer to any owner of a landed estate in Scotland, according to Wikipedia, you technically get a “title”, although that is not specified in the listing and would require further research of titles with the Lord Lyon. In the traditional Scottish order of precedence, a laird ranked below a baron and above a gentleman.

So what more could you ask for? Anyone want to go in on this island with me?

 

How US Gasoline Prices Compare to the Rest of the World

by Fred Fuld III

The number one financial topic that seems to be on everyone’s mind these days is inflation, and more specifically, the price of gas at the pump. Just in the last week, gasoline prices in the United States have increased by over 2.6%. That’s a lot for a one week increase!!!

The price is now around seven dollars gallon for high octane gas in California. As a matter of fact, the price oof gasoline in California is so bad, that the U.S. Energy Information Administration has two separate categories for the west coast: West Coast and West Coast Less California. I assume that the outrageously high price of California gasoline skews the west coast average.

Have you ever wondered how the US gas prices compare to other countries and how prices compare across the United States? The following is a selection of prices per gallon in US dollars from various American cities and countries around the world, based on recent averages.

Average Prices per Gallon of Regular Gasoline Around the World
Hong Kong $11.35
Italy $8.20
UK $8.66
Switzerland $8.57
Japan $4.74
India $5.06
US – West Coast $5.87
Canada $6.55
US – West Coast less California  $5.43
China $5.66
Australia $5.41
US – Midwest $4.97
Mexico $4.40
US – Rocky Mountain $4.92
US – AVERAGE $5.01
US – East Coast $4.85
US – Gulf Coast $4.63
Russia $3.53
Saudi Arabia $2.35
Iran $0.20
Venezuela $0.08

 

Sachin Khajuria: Founder of Achilles Management & Former Partner at Apollo: Exclusive Interview

by Fred Fuld III

The following informative interview was provided by Sachin Khajuria, the founder of Achilles Management and a former Partner at Apollo, one of the world’s largest alternative asset management firms. He has twenty-five years of investment and finance experience and holds degrees in economics from the University of Cambridge. He is also the author of Two and Twenty: How the Masters of Private Equity Always Win, which was recently released.

This interview contains a lot of great information about the private equity fund industry and the economy. Some of the topics included are as follows:

  • What a private equity fund is and does
  • How private equity funds differ from hedge funds
  • The possibility of a recession
  • The current high inflation rate
  • Stagflation
  • The current state of the stock market
  • Advice for someone who wants to get into the private equity field
  • and much, much more!

The Sachin Khajuria Interview

Enjoy listening to the great insights and information that Sachin Khajuria provides.

To stream the interview, click:

HERE

It may take a few seconds to load. You can also download the interview as an mp3 file by right-clicking (or Control clicking) HERE and choosing “save as”.

The Two and Twenty Book

The book, Two and Twenty: How the Masters of Private Equity Always Win, is available through Amazon and other book stores.

More Information about Sachin Khajuria

Additional information can be found about Sachin Khajuria and his company at Achilleslp.com.

Enjoy the interview!

All opinions are those of Sachin Khajuria, and do not represent the opinions of this site or the interviewer. Neither this site, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview.

 

 

 

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Stocks Going Ex Dividend in July 2022

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and some with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the yield.

Company & Symbol Ex date Amount Yield
Dollar General Corporation (DG) 7/1/2022 0.55 0.95%
Comcast Corporation (CMCSA) 7/5/2022 0.27 2.79%
Campbell Soup Company (CPB) 7/6/2022 0.37 3.26%
Intuit Inc. (INTU) 7/8/2022 0.68 0.74%
Oracle Corporation (ORCL) 7/11/2022 0.32 1.89%
Foot Locker, Inc. (FL) 7/14/2022 0.40 5.57%
Caterpillar, Inc. (CAT) 7/19/2022 1.20 2.49%
Colgate-Palmolive Company (CL) 7/20/2022 0.47 2.54%
Krispy Kreme, Inc. (DNUT) 7/26/2022 0.035 1.09%
Signet Jewelers Limited (SIG) 7/28/2022 0.20 1.31%
Hasbro, Inc. (HAS) 7/29/2022 0.70 3.50%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WSTNN.com HERE .

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.