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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi guys,

I recently read the intelligent investor and it gives several metrics by which Benjamin Graham would analyze stocks. Given that the book was written so long ago, are the metrics still relevant or have they evolved?

I'm specifically referring to a few, such as:

1- Current assets should be at 2 time Current liabilities

2 - Uninterrupted dividend payments for at least 20 years

3 - P/E Ratio of not more than 15 times when using last 3 year avg of earnings

4 - Long-term debt should not exceed working capital

While a lot of the information is helpful, it seems some of these criteria are nearly impossible to meet in the current low interest rate environment where companies are leveraging themselves to buy back shares or do other things. While we need to keep a close eye on long-term debt, net debt to EBITDA or net debt to total capitalization may be better tools to use?

Thanks,
Jason
Read Answer Asked by Jason on October 26, 2016
Q: Dividend 15 Split Corp. Preferred Shares DFN.PR.A has been rock steady for the last ten years or so (except for a plunge in '08-'09), paying 5%, while CPD and ZPR took a plunge starting in 2015. Why the steady performance of DFN.PR.A? How much would you recommend buying it? Thank you.
Read Answer Asked by Jerry on October 26, 2016
Q: Well the stock is getting hit really hard today. Is a 40% drop justified in your opinion? Unfortunately I still hold a small position having sold most of my shares earlier this year when the shorts were pounding the table on this company. What is your sense about continuing to hold the shares? The other concern has to do with the dividend. Do you believe that it will be maintained or is a cut probable?
Read Answer Asked by John on October 26, 2016
Q: Hi, BGC Partners is traded in the US and I've held it for a many years and have been happy with its progress (both stock appreciation and business performance in general). However, lately it has been trading sideways and I'm unsure why this is? Do you see this as a further buying opportunity, or are there warning flags?

On a scale of 1 - 10, 10 being the highest, where would you place BGCP in terms of risk?

Thanks,

Cam
Read Answer Asked by Cameron on October 26, 2016
Q: I need about $15,000 in cash. I hold larger amounts about equal in Coca Cola, General Electric, Microsoft and Sysco (which has dropped significantly in the last week) Which would you suggest I should cash in?
Thanks Jd
Read Answer Asked by John on October 26, 2016
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