If you loaded up on Gold before or after the Election – I have bad news for you:
- Bloomberg – Gold Falls Below $1,200
I will never understand the inclination to invest in Gold – it does not pay a dividend, does not protect against inflation, and in my opinion, is basically useless. The only hope you have – is selling it to someone else for more than you paid for it. For better investments – let’s look at today’s stock picks.
Two Pharmaceutical companies pass the 52-Week Low screen this week – and both have attractive dividend yields:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| BAYRY | $95.42 | $139.00 | $43.58 | 3.0% |
| NVO | $32.78 | $39.00 | $6.22 | 4.3% |
Click on the links to research further.
Bayer seems significantly undervalued – so I will be researching this stock myself. The pending Monsanto acquisition is also interesting:
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: I will be taking tomorrow off for Thanksgiving – please enjoy your families – or at least have some Good Red Wine:
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