Sunday, April 24, 2011
Since my last post on the three companies I have been prowling around, The Motley Fool's also locked in on Tim Horton's, especially given it's favorable valuation. It's a good high level article on Tim Horton's. I'm still digging deeper into the company.has
Sunday, April 3, 2011
Unemployment rate reported another nice drop to 8.8% last Friday. I've been monitoring overall economic conditions from oil prices, consumer confidence, housing, and the unemployment rate. Still weary about rising oil prices, but a number of stocks fell into my screen today. My usual screen turned up a lot more stocks than usual this time around, approximately 40 in total. The criteria for the selection:
- P/E < 15 (Looking for stocks trading at a stock multiple below 15x the company's trailing twelve months earnings)
- Return on Assets >20% (For every dollar of assets the company holds, I'm looking for the company to generate at least 20 cents in profit)
- PEG Ratio < 1 (Looking for stocks whose growth prospects are growing faster than the company's P/E)
- Current Ratio > 1 (The company has enough liquid assets to cover it's liabilities)
- Operating Margins > 20% (The company is able to generate at least 20 cents for every dollar of sales after it has paid it's larger expense items such as raw materials and salaries)
- Tim Horton's (THI): A really nice coffee/doughnut/sandwhich chain in Canada and parts of the US.
- Taiwan Semiconductor (TSM): The company designs and sells semiconductors, integrated circuits, and related equipment.
- Power-One Inc. (PWER): designs and manufactures, power conversion and power management solutions for the renewable energy and communications infrastructure industries.
- P/E (ttm): 12.21
- ROA : 28%
- Current Ratio: 2.05x
- Operating Margin: 34.39%
- P/E (ttm): 12.09
- ROA: 25.51%
- Current Ratio: 2.26
- Operating Margin: 37.69%
- P/E: 9.18
- ROA: 25.88%
- Current Ratio: 1.75%
- Operating Margin: 25.27%