Big pop in Oil this morning – OPEC apparently has agreed to production cuts:
- MarketWatch – Oil futures rocket 8% on hopes for OPEC output agreement: live blog
- Bloomberg – OPEC Agrees to Cut Production in Drive to End Global Glut
Since OPEC is notorious for cheating on production, over the long run I see the Oil glut continuing – since any short-term pop in Oil prices will only encourage more production from OPEC and Non-OPEC producers.
Same two Pharmaceutical companies pass the 52-Week Low screen this week:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| BAYRY | $94.48 | $139.00 | $44.52 | 3.0% |
| NVO | $32.72 | $39.00 | $6.28 | 4.3% |
Click on the links to research further.
I would love to see Novo Nordisk drop a little more – and sell some puts around $27.
52 Week Low stock picks are based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 3
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
Extra: Morningstar has their Monthly “Ultimate Stock-Pickers” listing out today – always worth a read:
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