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CVS Health Corporation (CVS)
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Capri Holdings Limited (CPRI)
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Atkore Inc. (ATKR)
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New Fortress Energy Inc. (NFE)
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PDD Holdings Inc. (PDD)
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StoneCo Ltd. (STNE)
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iShares MSCI USA Value Factor ETF (VLUE)
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iShares Morningstar Value ETF (ILCV)
Q:
This question is prompted by concern I felt upon seeing portfolio consists almost entirely of growth companies, few dividend payers, and no bond holdings. After reading the notes, articles and opinions of several financial analysts and investment gurus, I gather:
— that “value investing” has not worked for the past decade; and
— that now however is the time for investors to adopt a Value-centric approach.
Do you agree with this sentiment? If yes, does 5i have screens (or links to them) of US-listed companies whose share prices have declined more than fundamentals justify AND whose prospects for share price appreciation look good going forward ?
Additionally, IF, and *ONLY IF*, you believe “value’s time has come” do you have a US-listed value-oriented ETF that you care to recommend? I reviewed these two ETFs: ILCV and VLUE. Do you like either one? If yes, do you prefer one over the other? Or do you have other suggestions? Thanks! :ao: sab
This question is prompted by concern I felt upon seeing portfolio consists almost entirely of growth companies, few dividend payers, and no bond holdings. After reading the notes, articles and opinions of several financial analysts and investment gurus, I gather:
— that “value investing” has not worked for the past decade; and
— that now however is the time for investors to adopt a Value-centric approach.
Do you agree with this sentiment? If yes, does 5i have screens (or links to them) of US-listed companies whose share prices have declined more than fundamentals justify AND whose prospects for share price appreciation look good going forward ?
Additionally, IF, and *ONLY IF*, you believe “value’s time has come” do you have a US-listed value-oriented ETF that you care to recommend? I reviewed these two ETFs: ILCV and VLUE. Do you like either one? If yes, do you prefer one over the other? Or do you have other suggestions? Thanks! :ao: sab
Q: Thanks for your response to my previous question. Just when I thought it couldn't get any worse, CVS is down 4% this morning on this news:
A Senate bill, sponsored by Sens. Elizabeth Warren (D., Mass.) and Josh Hawley (R., Mo.), would force the companies that own health insurers or pharmacy-benefit managers to divest their pharmacy businesses within three years.
But surely, if CVS divested their pharmacy business then the proceeds could be used to reduce their debt? So why has the market reaction been so harsh?
A Senate bill, sponsored by Sens. Elizabeth Warren (D., Mass.) and Josh Hawley (R., Mo.), would force the companies that own health insurers or pharmacy-benefit managers to divest their pharmacy businesses within three years.
But surely, if CVS divested their pharmacy business then the proceeds could be used to reduce their debt? So why has the market reaction been so harsh?
Q: In your reply to Brad, who asked for your views on CVS, you said: The issues are very very high debt (15X cash flow!!!) and low growth. You also said: We might be willing to await a turnaround here if it was not for the giant debt level.
And yet:
Argus Research rates CVS a buy with a Medium Financial Strength rating.
Morningstar has a 5-star US$93 fair value rating on the stock.
There are 13 analysts with a buy rating, 4 with a hold rating, none with a sell rating and a $67.5 average target price.
CVS was one of Lorne Steinberg's top picks on Market Call today.
And on TD Webroker's Peer/Industry Comparison screen, CVS has a debt to capital ratio of 46.5% compared to 50.5% for the industry. How is this a giant debt level?
Could you recheck your numbers on CVS and see if you still come to the same giant debt level conclusion? Does your negative view of the stock take into account its depressed price at only 0.9 times book?
And yet:
Argus Research rates CVS a buy with a Medium Financial Strength rating.
Morningstar has a 5-star US$93 fair value rating on the stock.
There are 13 analysts with a buy rating, 4 with a hold rating, none with a sell rating and a $67.5 average target price.
CVS was one of Lorne Steinberg's top picks on Market Call today.
And on TD Webroker's Peer/Industry Comparison screen, CVS has a debt to capital ratio of 46.5% compared to 50.5% for the industry. How is this a giant debt level?
Could you recheck your numbers on CVS and see if you still come to the same giant debt level conclusion? Does your negative view of the stock take into account its depressed price at only 0.9 times book?