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Value Investing

Dollar Store Stocks and a Weak Economy

September 20, 2011
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One stock that’s been popping up in a lot of newsletters recently is Dollar Tree (DLTR), a leading discount retailer. It’s not hard to see why; the stock just hit a new 52-week high, at a time when many other stocks are well off their peaks. The story here is simple: Dollar Tree owns and operates 4,101 discount stores with a wide variety of very cheap products, many priced at or around $1. According to an August 18 New York Times article, in the wake of the recession, these super discount stores are gaining newly frugal customers of all...

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Walt Disney’s Valuation is Making it Attractive

September 12, 2011
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Turning to specific stocks, I will admit that this is a challenging time for me. The reason: the best charts today belong to conservative stocks, and I know from experience that once this negative environment has passed, those stocks will lose their allure. So instead of using charts, I’m turning to Cabot Benjamin Graham Value Letter today to highlight a stock that’s attractive based on valuation. It’s that well-known entertainment juggernaut Walt Disney Company (DIS), which is currently selling for 30% off its recent high. Here’s what Cabot Benjamin Graham Value Letter editor Roy Ward wrote in his latest...

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A Beverage Stock with Emerging Markets Exposure

August 24, 2011
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Reminiscing about my dad’s lesson involving PepsiCo (PEP) made me want to do some additional research on it. Here’s what I found … PepsiCo, incorporated in 1919, is a global leader in the soft drink and snack food industries. PepsiCo’s popular brands include Pepsi, Frito-Lay and Quaker Foods (acquired in 2001). PepsiCo gets 65% of total sales from North America, while the rest come from international sales spread throughout the world. The company is beating its competition by expanding in international markets and focusing on health and wellness beverages and foods. PepsiCo management has created faster growth by reacting...

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My Stock Investing Education

August 23, 2011
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My Stock Investing Education

My education in stocks started very early. In fact, my grandmother bought me my first stock before I even came home from the hospital! Of course, I was completely unaware of this at the time, but it didn’t take long for me to develop a keen interest in the world of business and investing. It was a huge passion for my grandma that she passed along to my dad and that they passed to my brother and me. I’ll never forget her determined searches for an Investor’s Business Daily when we were traveling. She just had to get her...

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Look North for Solid Stock Picks

August 16, 2011
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The August stock market decline has created many new buying opportunities. I strongly recommend that investors take advantage of the current low prices and buy undervalued Canadian stocks. I screened my Benjamin Graham database to find undervalued Canadian companies with rapidly growing earnings and strong balance sheets. I believe the two companies recommended below offer excellent appreciation potential during the next two to three years. Canadian National Railway (CNI), based in Montreal, operates Canada’s largest railroad system covering Canada from east to west and the central U.S. south to the Gulf of Mexico. Canadian National Railway is the most...

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