Added to WHR today. They have had production cuts like most manufacturers. They are trading at 5.14 trailing PE, vs a historical trailing PE of 9-14x. Their balance sheet is arguably the best in the the consumer industrial space, with $31 in cash per share They also sport a 4.58% dividend yield that is under no threat of being cut with a payout ratio of only 25%. With brands like KitchenAid, HefeiSanyo, Amana, Hoover, and of course Maytag, they stand to benefit long-term from this extended period where people are staying home cooking. Surely, people will start going out to eat again, but there’s also at least anecdotal evidence to suggest a lot of families have rediscovered cooking at home and family dinners at home.
Added to GE today. When they tried to test the recent lows this morning and couldn’t find any sellers, I pulled the trigger, dollar-cost averaging down to $7.24/share. There is an incredible amount of interest in June Calls at $8, $9, and $10; 90,000 lots. GE might be the most argued valuation of any equity in the industrial sector. There are analysts that argue that liquidation value is anywhere from $11-$38/ share. The average among the 15 analyst that cover the stock is $9.86 for one year, and I can’t find anyone with any sort of reputation at all that puts a 2022 valuation below $12. Most are somewhere between $15-20. GE definitely have balance sheet pressure, but nothing they can’t weather.
We still have a lot of rocky days ahead. Try to be patient, and buy great companies when they are on sale. Don’t chase: Roku, NFLX, etc. Good luck and good investing everyone. Go Cocks!
Added to GE today. When they tried to test the recent lows this morning and couldn’t find any sellers, I pulled the trigger, dollar-cost averaging down to $7.24/share. There is an incredible amount of interest in June Calls at $8, $9, and $10; 90,000 lots. GE might be the most argued valuation of any equity in the industrial sector. There are analysts that argue that liquidation value is anywhere from $11-$38/ share. The average among the 15 analyst that cover the stock is $9.86 for one year, and I can’t find anyone with any sort of reputation at all that puts a 2022 valuation below $12. Most are somewhere between $15-20. GE definitely have balance sheet pressure, but nothing they can’t weather.
We still have a lot of rocky days ahead. Try to be patient, and buy great companies when they are on sale. Don’t chase: Roku, NFLX, etc. Good luck and good investing everyone. Go Cocks!
