If we get a solid down day tomorrow – I will be selling 10 put contacts on P&G – once the trade is made, I will supply the details. Also, when I applied this screen today – I noticed all the Energy companies (XOM, SE, etc…) did not make the cut – turns out Morningstar is updating the fair value estimates for this sector, feeling their long term oil price outlook ($75 Brent and $69 WTI) is too high! Glad I sold XLE last week. Anyway, here are the companies that made the cut:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| ITC Holdings Corp | ITC | 31.58 | 42 | $10.42 | 2.37 | 24.81% |
| Amgen Inc | AMGN | 147.02 | 194 | $46.98 | 2.15 | 24.22% |
| Procter & Gamble Co | PG | 68.76 | 90 | $21.24 | 3.86 | 23.60% |
| Merck & Co Inc | MRK | 51.59 | 67 | $15.41 | 3.49 | 23.00% |
| Wal-Mart Stores Inc | WMT | 63.89 | 79 | $15.11 | 3.07 | 19.13% |
| Philip Morris International Inc | PM | 77.29 | 92 | $14.71 | 5.18 | 15.99% |
| Colgate-Palmolive Co | CL | 61.46 | 73 | $11.54 | 2.47 | 15.81% |
| Pfizer Inc | PFE | 31.37 | 36 | $4.63 | 3.57 | 12.86% |
| 3M Co | MMM | 139.84 | 160 | $20.16 | 2.93 | 12.60% |
| Coca-Cola Co | KO | 38.52 | 43 | $4.48 | 3.43 | 10.42% |
| Johnson & Johnson | JNJ | 91.31 | 99 | $7.69 | 3.29 | 7.77% |
| PepsiCo Inc | PEP | 90.92 | 97 | $6.08 | 3.09 | 6.27% |
Based on the following screen:
- Stocks to Own Screen:
- Morningstar analysis available.
- Low fair value uncertainty.
- Wide moat.
- Morningstar rating 4 or more stars.
- Financial Health Grade >= B.
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