If Wal-Mart gets cheaper – I might be able to get beyond my loathing of the actual stores – but it needs to get cheaper first. The spreads on Options for ITC Holding are too wide – with no liquidity – plus a lousy Yield. The balance of picks lack a great enough Margin of Safety at this time – so I am still sitting on my hands:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| ITC Holdings Corp | ITC | $31.28 | $42.00 | $10.72 | 2.1% | 26% |
| Wal-Mart Stores Inc | WMT | $58.78 | $75.00 | $16.22 | 3.3% | 22% |
| Amgen Inc | AMGN | $160.46 | $194.00 | $33.54 | 1.9% | 17% |
| Merck & Co Inc | MRK | $54.61 | $63.00 | $8.39 | 3.3% | 13% |
| Magellan Midstream Partners, L.P. | MMP | $67.09 | $76.00 | $8.91 | 4.3% | 12% |
| Spectra Energy Partners LP | SEP | $45.18 | $50.00 | $4.82 | 5.4% | 10% |
| Philip Morris International Inc | PM | $86.37 | $92.00 | $5.63 | 4.7% | 6% |
Based on the following screen:
- Morningstar analysis available.
- Low fair value uncertainty.
- Wide moat.
- Morningstar rating 4 or more stars.
- Financial Health Grade >= B.
- Current P/E <= 20.
Leave a Reply