I recently submitted four stocks that met the criteria laid out by Benjamin Graham for defensive investors. I do not believe for a moment that the intent was to find stocks that met the criteria, buy several of them, and then sit tight waiting for the stocks to go up. Do not be duped into thinking that no further homework is required prior to picking a stock from a list such as this.
One response from my previous list, which included Curtiss-Wright (CW, Financial), appeared to conclude that the stock might be OK, but that no further research was warranted in his estimation due to the valuation or margin of safety available. That is a very valid argument. Just because a stock corresponds to a predetermined list in every way, it may still not have an adequate margin of safety. The margin of safety may be and probably is different for each investor. Here’s a few more stocks for you to consider:
Ameron International Corp. (AMN, Financial)
Sales: $504
Current Ratio: 3.62
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a 6.25% yield
Earnings Growth: 5.65% per year (5 years)
P/E: 14.14
P/B: 1.17
P/E x P/B: 16.54
Unifirst Corp. Mass (UNF, Financial)
Sales: $1068
Current Ratio: 2.0
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a .30% yield
Earnings Growth: 12.92% per year (5 years)
P/E: 13.06
P/B: 1.32
P/E x P/B: 17.24
Cash Pawn America (CSH, Financial)
Sales: $1335
Current Ratio: 4.6
LTD: Less than Working Capital
Earnings Stability: 9 years of positive earnings
Dividends: 10 year minimum with a .28% yield
Earnings Growth: 19.92% per year (5 years)
P/E: 12.36
P/B: 1.64
P/E x P/B: 20.27
Universal Corp. (UVV, Financial)
Sales: $2458
Current Ratio: 3.1
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a 4.91% yield
Earnings Growth: 8.28% per year (5 years)
P/E: 6.92
P/B: 0.92
P/E x P/B: 6.37
Disclosure: Long on CSH
One response from my previous list, which included Curtiss-Wright (CW, Financial), appeared to conclude that the stock might be OK, but that no further research was warranted in his estimation due to the valuation or margin of safety available. That is a very valid argument. Just because a stock corresponds to a predetermined list in every way, it may still not have an adequate margin of safety. The margin of safety may be and probably is different for each investor. Here’s a few more stocks for you to consider:
Ameron International Corp. (AMN, Financial)
Sales: $504
Current Ratio: 3.62
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a 6.25% yield
Earnings Growth: 5.65% per year (5 years)
P/E: 14.14
P/B: 1.17
P/E x P/B: 16.54
Unifirst Corp. Mass (UNF, Financial)
Sales: $1068
Current Ratio: 2.0
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a .30% yield
Earnings Growth: 12.92% per year (5 years)
P/E: 13.06
P/B: 1.32
P/E x P/B: 17.24
Cash Pawn America (CSH, Financial)
Sales: $1335
Current Ratio: 4.6
LTD: Less than Working Capital
Earnings Stability: 9 years of positive earnings
Dividends: 10 year minimum with a .28% yield
Earnings Growth: 19.92% per year (5 years)
P/E: 12.36
P/B: 1.64
P/E x P/B: 20.27
Universal Corp. (UVV, Financial)
Sales: $2458
Current Ratio: 3.1
LTD: Less than Working Capital
Earnings Stability: 10 years of positive earnings
Dividends: 10 year minimum with a 4.91% yield
Earnings Growth: 8.28% per year (5 years)
P/E: 6.92
P/B: 0.92
P/E x P/B: 6.37
Disclosure: Long on CSH
