The Market continues to rally – but I am not sure why? Earnings are down, valuations are at extreme highs, and we are heading into the Summer Months which have traditionally been very difficult for equities.
The Stock Market often sends me these reminders on why I don’t hedge my holdings – if I did, I would probably lose a lot of money.
Rather than reposting my previous commentary on hedging – here is the link:
Still only two candidates from this Alternative Screen:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| BMRN | $86.79 | 132 | $45.21 | 0.0% |
| ESRX | $71.53 | 100 | $28.47 | 0.0% |
These stocks don’t pay a dividend – so I am less likely to want to own them outright. Would make a trade with a large Margin of Safety.
Results are based on the following screen:
- Price / Fair Value <= 0.75
- Economic Moat >= Narrow
- Financial Health Grade >= B
- Morningstar Rating = Five Stars
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