Monday, January 20, 2014
As we are all aware we are heading into reporting season for another year. The USA has already started their reporting season and as such we are expecting many updates in Skaffold over the next few months.
To make your job a little easier we have compiled a short calendar of some of the biggest and most popular stocks in the USA
Friday, November 15, 2013
You need to tread carefully when using a price earnings ratio (P/E) and dividend yield to gauge how attractive bank stocks might be. That’s because bad debts or one-off items can compromise the sustainability of bank dividends.
So it’s important to understand that banks require some peculiar evaluation criteria when it comes to assessing their intrinsic value and business performance. If you do want to call on the price earnings ratio to help value and compare one bank stock against another, then it must be used alongside some bank-specific financial ratios.
Whilst some valuation principles are equally applicable to all companies, there are a number of complications specific to banks such as determining leverage – due to being both borrower and lender - regulatory impact, capital expenditure and interest margins.
The key financial ratios you need to look at when evaluating banks and estimating their intrinsic value are net interest margin, cost to income ratio, bad debts, return on assets, Tier 1 capital ratio and the price to book ratio.
Wednesday, August 07, 2013
Australia’s “Big 4” banks dominate our Top 10, collectively representing 42% of our largest listed stocks. Historically the banks have been a safe haven for investors seeking a reliable income stream. In the last 12 months shareholders have also enjoyed exceptional share price growth averaging more than 25%.
Which bank stands out for its history of consistent growth, steady dividend stream, efficiency and good cost control over the past 12 months? And which bank is well positioned to continue rewarding its shareholders. Is it one of Australia’s “Big 4”, or should investors expand their investment universe offshore?
Tuesday, March 12, 2013
Warren Buffett published his 2012 Letter to Shareholders late last month. In it he announced Berkshire’s intention to increase its ownership of American Express (AXP), Coca-Cola (KO), IBM (IBM) and Wells Fargo (WFC). Skaffold has rated American Express B4 since 2010, Wells Fargo & Co (WFC) A2 since 2011 and IBM A3 for the past two years. Coca Cola (KO) recently fell from B2 to B4 based on its latest financial results. What about Berkshire itself? The stock price recently hit a new high of more than $155,100. According to Skaffold, the intrinsic value of BRK.A is around $67,000.