Thursday, November 27, 2014

My stocks for Portfolio with purpose

Which are 5 most undervalued stocks of my watch list?? Other day I was watching CNBC and came to know about portfolioswithpurpose.org. It’s a not for profit organization. It has annual Stock picking competition where anyone can participate. One needs to sign up, and create a portfolio. It’s monitored for the whole year, and at the end of the year the portfolio with highest return wins the competition. The signup fee is $100 , all of this goes to one's favorite charity. Well for me it was hitting two birds with one stone. It helped me donate to a good charitable cause and also gave me an opportunity to test my stock picking skills. I will need to come up with 5 stocks for my portfolio. The best place I could look for was my watch list. I scanned thru it and created a list of stocks that are trading below my valuation. I was able to spot the following stocks which I have labeled as "Investment candidates". I will analyze each of the stock to determine the margin of safety I would need to invest in them. The five most undervalued stocks make the cut for entry to portfoliowithpurpose.

Investment candidates   Gamestop   First Solar   Core Logic   Lexmark   Veeva Systems   AVX corp   Vishay International   Finisar   Cirrus Logic   Benchmark Electronics   Ommni Vision Tech   InvenSense   Quality Systems

5yr  GME  

Updated - 10/12/2014  GME Valuation : $50.85 / share , Total value : $6 billions
(Base FCF : $0.5 billion , multiple 12 , Net book value for val : 0)
Shares oustanding : 118 millions  LINKS SEC  Company

5yr  FSLR  

Updated - 10/12/2014  FSLR Valuation : $52.08 / share , Total value : $5.00 billions
(Base FCF : $0.50 billion , multiple 8 , Net book value for val : $1 billion)
Shares oustanding : 96 millions  LINKS SEC  Company

5yr  CLGX  

Updated - 10/22/2014  CLGX Valuation : $38.66 / share , Total value : $3.75 billions
(Base FCF : $0.28 billions , multiple 18 , Net book value for val : -$1.20 billion )
Shares oustanding : 97 million  LINKS SEC  Company

5yr  LXK  

Updated - 10/22/2014  LXK Valuation : $56.25 / share , Total value : $3.60 billions
(Base FCF :$0.30 billions , multiple 13 , Net book value for val :-$0.30 )
Shares oustanding : 64 millions  LINKS SEC  Company

5yr  VEEV  

Updated - 10/22/2014  VEEV Valuation : $39.34 / share , Total value : $2.68 billions
(Base FCF : $0.10 billions , multiple 25 , Net book value for val : $0.18 billion )
Shares oustanding : 68 millions  LINKS SEC  Company

5yr  AVX  

Updated - 10/22/2014  AVX Valuation : $15.48 / share , Total value : $2.60 billions
(Base FCF :$0.10 billions , multiple 12 , Net book value for val :$1.40 billion )
Shares oustanding : 168 millions  LINKS SEC  Company

5yr  VSH  

Updated - 10/22/2014  VSH Valuation : $15.79 / share , Total value : $2.40 billions
(Base FCF : $0.15 billions , multiple 12 , Net book value for val :$0.60 billion )
Shares oustanding :152 millions  LINKS SEC  Company

5yr  FNSR  

Updated - 10/22/2014  FNSR Valuation : $20.19 / share , Total value :$2.10 billions
(Base FCF :$0.10 billions , multiple 15 , Net book value for val :$0.60 billion )
Shares oustanding : 104 millions  LINKS SEC  Company

5yr  CRUS  

Updated - 10/22/2014  CRUS Valuation : $29.23 / share , Total value : $1.90 billions
(Base FCF : $0.15 billions , multiple 10 , Net book value for val : $0.40 billion )
Shares oustanding : 65 millions  LINKS SEC  Company

5yr  BHE  

Updated - 10/22/2014  BHE Valuation : $32.73 / share , Total value : $1.80 billions
(Base FCF : $0.10 billions , multiple 10 , Net book value for val : $0.80 billion )
Shares oustanding : 55 millions  LINKS SEC  Company

5yr  OVTI  

Updated - 10/22/2014  OVTI Valuation : $30.36 / share , Total value : $1.70 billions
(Base FCF :$0.12 billions , multiple 10 , Net book value for val : $0.50 billion )
Shares oustanding : 56 millions  LINKS SEC  Company

5yr  INVN  

Updated - 10/22/2014  INVN Valuation : $16.67 / share , Total value : $1.50 billions
(Base FCF : $0.10 billions , multiple 15 , Net book value for val : 0 )
Shares oustanding : 90 millions  LINKS SEC  Company

5yr  QSII  

Updated - 10/22/2014  QSII Valuation : $19.17 / share , Total value : $1.15 billions
(Base FCF : $0.075 billions , multiple 14 , Net book value for val :$0.10 billion )
Shares oustanding : 60 millions  LINKS SEC  Company