Benjamin Graham was Warren Buffett's professor and mentor at Columbia Business School. Buffett even named his son Howard Graham Buffett, after Graham. In the preface to Graham's book, "The Intelligent Investor," Buffett calls it "by far the best book about investing ever written."
Serenity's Benjamin Graham Screener applies Graham's 16 financial criteria to 4,500 NYSE and Nasdaq stocks to find Defensive, Enterprising and NCAV grade Graham stocks today.
Last year, we briefly saw a formula that Graham actually warned against, but is widely used as "The Benjamin Graham Formula." Today, we will look in greater depth into how this confusion came about, what Graham actually wrote and finally, some stocks that meet the more complex formulas that Graham actually did recommend.
The Wrong Intrinsic Value Formula
The formula itself is mentioned in "Chapter 11: Security Analysis for the Lay Investor" of Graham's seminal book, "The Intelligent Investor," as:
Value = Current (Normal) Earnings X (8.5 plus twice the expected annual growth rate)
10 Best Defensive Stocks To Invest In 2014: Sara Lee Corporation(SLE)
Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf
10 Best Defensive Stocks To Invest In 2014: Accell Group NV (ACCG.AS)
Accell Group NV is a Netherlands-based holding company. The Company and its subsidiaries divides its business into two segments: Bicycle & Bicycle Parts, active in the design, development, production, marketing and sales of bicycles, bicycle parts and accessories; and Fitness, providing fitness equipment. It sells bicycles under the Batavus, Bremshey, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora, XLC and Raleigh brands via specialist bicycle retailers as well as bicycle parts under the Juncker Bike Parts and Wiener Bike Parts brands and fitness equipment under the Bremshey Sport brand. The Company�� main markets are the Netherlands, Germany, France, and European countries. The Company has production facilities in the Netherlands, Germany, France, Hungary and Belgium. As of December 31, 2011, it operated through 21 wholly owned subsidiaries. On May 22, 2012, the Company acquired Raleigh Cycle Limited.
Top Communications Equipment Stocks To Buy Right Now: Changfeng Energy Inc (CFY.V)
Changfeng Energy Inc. operates as a natural gas utility in the People's Republic of China. It designs, constructs, owns, and operates natural gas pipeline network for residential, commercial, and industrial customers in Sanya City, Hainan province, as well as in Xiangdong District, Pingxiang City, Jiangxi Province. The company has 30 years concession rights and 50 years operation rights to operate the natural gas distribution business. Its distribution network consists of 38 kilometers (km) of high-pressure gas pipelines; 26.6 km of high-to-medium pressure pipeline; approximately 122 km of medium to low pressure gas pipelines; and approximately 600 km of branch/customer pipelines, as well as includes 1 primary station, 2 gate processing stations, and 3 gas pressure regulating stations. The company also operates a compressed natural gas refueling retail station in Changsha City, Hunan Province. Changfeng Energy Inc. was founded in 1995 and is headquartered in Toronto, Canad a.
10 Best Defensive Stocks To Invest In 2014: Solar Energy Initiatives Inc (SNRY)
Solar Energy Initiatives, Inc., incorporated on June 20, 2006, is a provider of solar solutions with three wholly owned subsidiaries focused on projects, solar education and distribution of solar products. Its products include solar panels, inverters, solar thermal systems, system design, financial consulting and analysis, construction management, and maintenance and monitoring. The SNRYPower subsidiary is a developer and manager of municipal and commercial scale solar projects. The Solar-EOS Inc subsidiary is engaged in education and continuous improvement of solar energy trade professionals. The SNRYSolar Inc subsidiary is a wholesale distributor of branded photovoltaic and thermal (water heating) systems selling via a network of dealers throughout the United States and the Caribbean. During the fiscal year ended July 31, 2010 (fiscal 2010), the Company sold its interests in SolarEnergy.com, a domain name and digital property back to its original owner. In February 2011, the sold its Solar (EOS) Division.
Solar EOS, Inc.
Solar EOS, Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. It is an education group dedicated to the creation, training, advancement and continuous improvement of professionals through standard and customized solar training programs and workforce development. It supports the growth of the solar industry through training and education. Solar EOS provides training through its Professional Development Institute and through its Technical Installation Schools, as well as through its Customized Training Programs.
Professional Development Institute offers programs to architects, engineers, general contractors, roofers, plumbers, facility managers and owner�� representatives. The institute offers solar courses to members of the professional communities. Many courses provide needed continuing education units for licensure and professional registrations. Solar EOS is also an approved Ukulele Society of Great Britain (USGB) Educatio! n Provider. These classes are paid for by the professional or his company when taking the course.
Technical Installation Schools focus on workforce development and public/private partnerships. The school trains the next generation of solar thermal and photovoltaic installers in construction best practices, utilizing hands-on training, real world situations, theory and design coursework, and professional development training. Career Services programs, partnerships and dealer relationships drive the job placement of the students. These courses are paid for by the business rather than the individuals.
Customized Training Programs work through partnerships with universities, community and technical colleges, non profits, corporations, professional organizations, municipalities and workforce redevelopment agencies to meet the specific needs of groups of students. The Company writes the curriculum, provides the instructors, coordinates workshops, develops training programs, and hosts webinars and on-demand webcasts. The students do not pay for the course but is paid for through a variety of government programs in the form of a grant. As of October, 2010, the Company entered the fourth class for the Technical Installation School and graduated over 50 students, and trained more than 100 professionals in its Professional Development Institute.
SNRY Solar Inc.
SNRY Solar Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. (SEI). SNRY Solar is responsible for two areas: wholesale sales and government programs. SNRY Solar represents several manufacturers of solar systems and components in the Photovoltaic (PV), Solar Thermal / Hot Water (HW) and solar pool heating systems. SNRY Solar inventories and sells these components and systems to a network of installers, dealers and other business types across the United States and the Caribbean. SNRY Solar provides technical information, supply coordination and extensive sales support to aide these indep! endent bu! sinesses.. These support functions include but are not limited to preliminary engineering, scoping and drawings to support sales activity as well as lead generation tools, product recommendation and proposal support. SNRY Solar has developed business models which engage community groups, local, state and federal leaders and grass roots organizations to seek available funds to support job creation through solar.
SNRY POWER Inc.
SNRY POWER Inc. is a wholly owned subsidiary that focuses on developing solar photovoltaic (PV) panel systems for either mounting on the ground or on rooftops. These systems, once installed, generate electricity that is sold to various third parties including utilities, home and business owners, municipalities and other government agencies. In the Power Purchase Agreement (PPA) program, the Company builds the PV system at no charge to the host (the municipality or other customer). The system is built on space (either land or rooftop) provided by the host in exchange for a reduction in the hosts payment for electricity (usually expressed in cents per kilowatt hour (KWh).
The Company is constructing a one mega watt (MW) ground mounted solar PV system on land provided by the Cherokee School District in North Carolina. It has secured construction financing to build 50% of the system and considering selling the system in fiscal 2010.
Solar panels are solar cells electrically connected together and encapsulated in a weatherproof package. The Company purchases from Suntech, GE Solar, BP Solar and other vendors in the Unites States and off-shore. Inverters transform direct current (DC), electricity produced by solar panels into alternating current (AC), electricity used in homes and businesses. Inverters are used in every on-grid solar power system and feed power either directly into the structure�� electrical circuit or into the utility grid. In North America, it sells branded inverters designed for use in residential and commercia! l systems.! Inverters it sources include models spanning a power range of 2.5 to 500 kilowatts. Its inverters are manufactured by Solectria, Xantrex, SMA Technologies, AG and PV Powered. Solar thermal systems include a solar collector, which gathers solar radiation to heat air or water for domestic, commercial or industrial use, piping and/or pump(s) to move heated water and a tank for storage. The Company provides dealers and customers with a variety of services, including system design, energy efficiency, financial consulting and analysis, construction management and maintenance and monitoring. Solar electric and solar thermal systems are designed to take into account the customer�� location, site conditions and energy needs.
The Company competes with groSolar, Sunpower, Sunwize, BP Solar, Evergreen Solar and GE Solar.
10 Best Defensive Stocks To Invest In 2014: Kandi Technolgies Corp.(KNDI)
Kandi Technologies Corp., through its subsidiaries, engages in the design, development, manufacture, and commercialization of off-road vehicles, motorcycles, mini-cars, and special automobile related products. Its off-road vehicles include all-terrain vehicles, specialized utility vehicles, and go-karts. The company sells its products through third-party and independent distributors in the People?s Republic of China, Asia, North America, Europe, and Australia. Kandi Technologies Corp. is based in Jinhua, the People?s Republic of China.
Advisors' Opinion:- [By Teresa Rivas]
Kandi Technologies (KNDI) was soaring 17.5% at recent check as the auto maker announced that the Chinese government will offer subsidies for electric cars.
The long-awaited policy covers not only pure electric vehicles, but also plug-in hybrid electric and fuel cell battery cars, and runs through 2015. According to the report, the government would offer up to RMB 60,000 (approximately USD 9,800) for the purchase of an all-electric passenger vehicle and up to RMB 500,000 (approximately USD 81,700) for the purchase of an electric bus.
However, the news did little to stop Tesla (TSLA), which was revving toward fresh all-time highs, up more than 5% to $174.78.
Nor did news Wednesday that Volkswagen plans to have electric vehicles for sale in the U.S. by 2015.
However, Tesla plans to have its own innovations to offer not long after that year, as CEO Elon Musk said that it is designing a self-driving car that will be available within the next three years. The company is obviously taking aim at Google (GOOG), so far the leader in auto-pilot cars.
Deutsche Bank boosted its price target for Tesla to $200 yesterday. Also, Northland Securities is making positive comments on the stock today, reports Briefing.com.
- [By Sean Williams]
Rotten Kandi
This year has certainly been the year of going green, with anything solar or electric-vehicle-based shooting to the moon. The latest in a serious of rocket stocks is China's Kandi Technologies (NASDAQ: KNDI ) , which has basically doubled in just the past two weeks following the Chinese government's approval of the company's first all-electric sedan. Given the success of Tesla Motors (NASDAQ: TSLA ) in the U.S., many are suspecting that Kandi will be a surefire winner with Geely Automotive in its corner as a partner. As for me, I'm not as convinced. - [By Bryan Murphy]
To fully appreciate the investment-worthiness of electric vehicles, one only has to look at how well shares of Tesla Motors Inc. (NASDAQ:TSLA) or Kandi Technologies Group Inc. (NASDAQ:KNDI) have done since the technology as well as the motivation to make EVs "work" has been in place. KNDI shares are up more than 200% since the end of 2007, while TSLA shares are up nearly 700% since their IPO in mid-2010. The big moves can't be chalked up to a little volatility either. Both Tesla Motors and Kandi Technologies have electric cars on the road, whereas they didn't before.
- [By Roberto Pedone]
Kandi Technologies Group (KNDI) is engaged in designing, developing, manufacturing and commercializing electrical vehicles, all-terrain vehicles, go-karts and specialized automobiles related products for the People's Republic of China and global markets. This stock closed up 5.3% to $5.35 in Tuesday's trading session.
Tuesday's Range: $5.21-$5.55
52-Week Range: $3.08-$8.50
Tuesday's Volume: 1.78 million
Three-Month Average Volume: 1.72 millionFrom a technical perspective, KNDI jumped higher here right above some near-term support at $5.07 with above-average volume. This move is quickly pushing shares of KNDI within range of triggering a near-term breakout trade. That trade will hit if KNDI manages to take out Tuesday's high of $5.55 to some more resistance at $5.72 with high volume.
Traders should now look for long-biased trades in KNDI as long as it's trending above some near-term support at $5.07 or above its 50-day at $4.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.72 million shares. If that breakout hits soon, then KNDI will set up to re-test or possibly take out its next major overhead resistance levels at $6.50 to $7.
10 Best Defensive Stocks To Invest In 2014: Allied Nevada Gold Corp(ANV)
Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in the state of Nevada. It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights and is located to the west of Winnemucca, Nevada. The company also involves in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects. In addition, the company holds exploration rights to approximately 100 other exploration properties in Nevada. Allied Nevada Gold Corp. was incorporated in 2006 and is headquartered in Reno, Nevada.
Advisors' Opinion:- [By Travis Hoium]
What: Gold and silver miners are taking it on the chin today. Royal Gold (NASDAQ: RGLD ) fell as much as 10.4%, Allied Nevada Gold (NYSEMKT: ANV ) fell up to 11.5%, and Silver Wheaton (NYSE: SLW ) dropped as much as 11.2%.
10 Best Defensive Stocks To Invest In 2014: Volcano Corporation(VOLC)
Volcano Corporation designs, develops, manufactures, and commercializes intravascular ultrasound (IVUS) and fractional flow reserve (FFR) products used in the diagnosis and treatment of vascular and structural heart disease. It offers multi-modality consoles, which are marketed as stand-alone units that can be integrated into hospital-based interventional surgical suites, such as catheterization laboratories. The company provides IVUS products, including single-procedure disposable phased array and rotational IVUS imaging catheters; and additional functionality options comprising virtual histology tissue characterization, and ChromaFlo stent apposition analysis. It also offers FFR products, such as pressure and flow consoles, and single-procedure disposable pressure and flow guide wires used to measure the pressure and flow characteristics of blood around plaque enabling physicians to gauge the plaque?s physiological impact on blood flow and pressure. In addition, the com pany develops and manufactures optical monitors for the telecommunication industry; laser and non-laser light sources; optical engines used in the medical OCT imaging systems and advanced photonic components; and sub-systems used in spectroscopy and other industrial applications. Its products under development include image-guided therapy device and micro and thrombectomy catheters. The company?s ongoing clinical studies comprise assessment of dual anti-platelet therapy with drug-eluting stents; vascular evaluation for revascularization; fractional flow reserve and intravascular ultrasound relationship study; adensonine vasodilation independent stenosis evaluation; and evaluation of XIENCE PRIME. It sells its products through direct sales force and distributors, as well as through third parties supply and distribution agreements primarily in the United States, Japan, Europe, the Middle East, Africa, and internationally. The company was founded in 2000 and is headquartered i n San Diego, California.
Advisors' Opinion:- [By Ben Levisohn]
Strategist Andrew Garthwaite and team explain why companies like Sprint (S),� American Water Works (AWK), Volcano (VOLC), Southern (SO) and Level 3 Communications�(LVLT) could get hit by the taper:
- [By Ben Levisohn]
Instead of an eruption, Volcano (VOLC) got an earnings-induced collapse instead.
Associated PressMedical-device maker Volcano said its third quarter profit would miss Wall Street forecasts, and 2013 sales would also disappoint. And 2014? Well, that didn’t look too exciting other.
JPMOrgan analyst Christopher Pasquale and team have had enough:
We are downgrading VOLC shares to Neutral from Overweight following the company�� negative 3Q preannouncement and disappointing initial 2014 growth outlook Monday after the close. While we continue to see significant long-term potential for Volcano�� technologies, we are concerned by persistent headwinds to its core IVUS franchise and slowing FFR growth. With our conviction in a pipeline-driven reacceleration reduced and visibility into meaningful new growth drivers unlikely for several quarters, we are moving to the sidelines.
Canaccord Genuity’s Jason Mills and Jeffrey Chu also cut Volcano to Hold–just a quarter after upgrading it–and even today’s drop might not make it worth buying. They explain why:
Our upgrade of VOLC last quarter was predicated on the improving trends in the core IVUS business, FFR continuing as a long-term growth engine, and the potential material gross margin expansion. While Q3 results included pockets of good news, adverse trends predominated.
While US IVUS rebounded modestly, driven by peripheral IVUS (+40% Y/Y), IVUS and FM results in Japan were very disconcerting to us (-19%, +8%, respectively), and portend share loss, in our estimation. Also, while we still expect significant gross margin expansion long term, it seems we may have to wait longer than expected.In sum, we would not aggressively buy weakness unless the stock is over-penalized on these results – i.e. below $20.
While shares of Volcano have dropped 15% to $20.74, large-cap medical device companies are having a solid day. Boston Scienti
10 Best Defensive Stocks To Invest In 2014: Cymer Inc.(CYMI)
Cymer, Inc., together with its subsidiaries, engages in the development, manufacture, and marketing of light sources for the manufacturers of photolithography tools in the semiconductor equipment industry. It offers installed base products in support of chipmaker customers used in their advanced wafer patterning production processes. The company also supplies deep ultraviolet light sources to lithography tool manufacturer customers, who integrate the light source into their wafer steppers and scanners, which they then provide to chipmakers. Its products include 193 nanometers (nm) ArF immersion light sources, 193 nm ArF dry light sources, and 248 nm KrF light sources. In addition, the company invests in the development of extreme ultraviolet sources for chip manufacturing. Further, it develops, integrates, markets, and supports silicon crystallization tools used in the manufacture of various types of displays, including high-resolution low temperature poly-silicon liquid c rystal displays and organic light emitting diode displays; and installed base products for use in photolithography systems used in the manufacture of semiconductors. Additionally, the company offers spare and replacement parts for light sources. Cymer, Inc. markets its products in the United States, Europe, Japan, Taiwan, South Korea, Singapore, and China. The company was founded in 1986 and is headquartered in San Diego, California.
10 Best Defensive Stocks To Invest In 2014: Blue Sky Uranium Corp (BSK.V)
Blue Sky Uranium Corp., a junior mineral exploration company, engages in acquisition, evaluation, and exploration of uranium properties in Canada and Argentina. The company holds interests in a 600,000-hectare land package in the Patagonia region of southern Argentina. Its properties include Santa Barbara and ANIT Uranium project located in the Rio Negro Province of Argentina. Blue Sky Uranium Corp. was incorporated in 2005 and is based in Vancouver, Canada.
10 Best Defensive Stocks To Invest In 2014: Westwood Holdings Group Inc(WHG)
Westwood Holdings Group, Inc. manages investment assets and provides services for its clients. It operates through two subsidiaries, Westwood Management Corp. and Westwood Trust. The Westwood Management Corp. provides investment advisory services to corporate retirement plans, public retirement plans, endowments and foundations, mutual funds, individuals, and clients of Westwood Trust. The Westwood Trust provides trust and custodial services to institutions and high net worth individuals, and participates in common trust funds that it sponsors. The company was founded in 1983 and is based in Dallas, Texas.
Advisors' Opinion:- [By Will Ashworth]
Even though APAM stock has been hitting its 10-month high in recent days, its yield is still 2.6% — 50 basis points higher than BLK, WDR and WETF. If you like asset managers that handle big chunks of institutional money while still playing the retail mutual fund game, this is the smart choice.
Westwood Holdings Group (WHG)I first became aware of the Dallas-based asset manager Westwood Holdings Group (WHG) when I read about its founder, Susan Byrne, in an article that appeared in Fortune magazine several years ago. Her firm has been doing great things outside the bright lights of Manhattan ever since.
10 Best Defensive Stocks To Invest In 2014: (TATASTEEL.NS)
Tata Steel Limited manufactures and sells steel products in India and internationally. The company provides steel products to vehicle manufacturers and component suppliers, and aerospace sector; structural frames, infrastructure, building envelope, and internal fit out application products used for heating and ventilation, and partition walls; hot rolled coil products and high-gloss pre-finished steel perforated blanks primarily for use in domestic appliances, lighting, furniture and office equipment, racking and shelving, battery cases, bake-ware, enamel-coated applications, and decorative pre-finished metals; hot rolled and cold rolled sheets, wire rod and wire, sections, plate, bearings, and tubes for engineering companies; agricultural implements; wire products for use in farming and fencing; and engineering services, including testing, erection, and commissioning, and business consulting services. It also offers tinplate, ECCS, and Protact polymer-coated steel product s for canmaking industry; formable steels for large and intermediary steel drums, and small pails for industrial packaging sector; strip and coil, quenched and tempered plate, and special profiles for track shoe and forklift masts, as well as engineered steel bars and tubes for lifting and excavating sector; welded pipeline packages and prefabricated structural products for wind, and oil and gas structures; light fabricated systems for solar farm foundations; semi finished steel components for drilling and power generation; plates, bulb flats, angles, tubes, sections, and bars for shipbuilding; rail sections sizes, steel sleeper, noise reduction systems, other specialised track, and rail products for rail sector; steel plate and sections, armoured steel, blast protective structures, perimeter security, and anti-attack vehicle barriers, as well as engineering consultancy and solutions to defense and security sector. The company was founded in 1907 and is headquartered in Mumb ai, India.
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