November 25, 2011
|Symbol||Name||Price||% Yr Low||P/E||EPS (ttm)||Dividend||Yield||Payout Ratio|
|AVP||Avon Products, Inc.||16.09||0.00%||9.46||1.70||0.92||5.72%||54%|
|CCBG||Capital City Bank Group||9.65||0.00%||21.93||0.44||0.40||4.15%||91%|
|FNFG||First Niagara Financial Group||8.24||0.24%||12.48||0.66||0.64||7.77%||97%|
|TR||Tootsie Roll Industries Inc||22.88||0.26%||31.78||0.72||0.32||1.40%||44%|
|AROW||Arrow Financial Corp.||21.58||0.37%||11.66||1.85||1.00||4.63%||54%|
|BMS||Bemis Co Inc||27.62||1.51%||13.88||1.99||0.96||3.48%||48%|
|MTB||M & T Bank Corp.||67.7||1.96%||9.80||6.91||2.80||4.14%||41%|
|CHRW||C.H. Robinson Worldwide, Inc.||63.63||2.13%||24.76||2.57||1.16||1.82%||45%|
|BDX||Becton, Dickinson and Co.||71.11||2.18%||12.65||5.62||1.64||2.31%||29%|
|BMO||Bank of Montreal||53.22||2.68%||10.82||4.92||2.82||5.30%||57%|
|WFSL||Washington Federal, Inc.||12.52||3.05%||12.52||1.00||0.24||1.92%||24%|
|LM||Legg Mason, Inc.||23.31||3.10%||14.21||1.64||0.32||1.37%||20%|
|AVY||Avery Dennison Corp.||24.25||3.10%||9.19||2.64||1.00||4.12%||38%|
|BCR||CR Bard, Inc.||83.37||3.18%||21.43||3.89||0.76||0.91%||20%|
|BMI||Badger Meter, Inc.||27.83||3.42%||17.29||1.61||0.64||2.30%||40%|
|VNO||Vornado Realty Trust||70.73||3.42%||16.96||4.17||2.76||3.90%||66%|
|HCC||HCC Insurance Holdings, Inc.||25.6||3.81%||10.58||2.42||0.62||2.42%||26%|
|WFC||Wells Fargo & Co.||23.51||4.12%||8.71||2.70||0.48||2.04%||18%|
|WEYS||Weyco Group, Inc.||21.72||4.32%||16.58||1.31||0.64||2.95%||49%|
|BEN||Franklin Resources, Inc.||91.63||4.47%||10.63||8.62||1.00||1.09%||12%|
|EXPD||Expeditors Intl of Washington||40||4.58%||22.10||1.81||0.50||1.25%||28%|
|GE||General Electric Co||14.7||4.85%||11.22||1.31||0.60||4.08%||46%|
|CWT||California Water Service||17.47||4.92%||17.83||0.98||0.62||3.55%||63%|
Watch List Summary
Topping our list this week again is Avon Product (AVP). According to IQTrends (http://www.iqtrends.com/), AVP is considered undervalued once it reaches 3.7% dividend yield. The yield rose to 5.7% this week from 5.05% two weeks prior. Any long-term investor would need to do extensive due diligence prior to committing their hard earned capital to this investment opportunity. The current payout ratio is at 54% imply that earnings can fall by half before dividend cut is considered. Please note that thie company is being investigated by SEC.
Another company for yield seeker is AT&T (T). The current yield of 6.28% is hard to ignore when 10 year T-Bill pays 1.97%. IQTrends estimated that AT&T is undervalued when yield reach 5.5%. A return to that yield would equate to 14% upside. Payout ratio of 87% is quite high but not somehing AT&T haven't experienced. The recent M&A deal with T-Mobile was broken up and thus would be interesting to see how AT&T would fight off the competition from Verizon.
On our current list, we excluded companies that have no earnings. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence. We suggest that readers use the March 2009 low (or the companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. A minimum of 50% decline or the November 2008 to March 2009 low, whichever is lower, would fit that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one-year period.
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