Strong, Undervalued Security Picks

[Hawklet2]

These securities have a low price as compared to their values. Expect big returns from them withen the year:

Starbucks (SBUX)
Currently trading at 36.42.
Expected to trade at 200 withen 10 years.
Expected yearly return: 18.67%

Apple Computers (AAPL)
Currently trading at 88.26.
Expected to trade at 520 withen 10 years.
Expected yearly return: 19.50%

Time Warner (TWX)
Currently trading at 20.91
Expected to trade at 110 withen 10 years.
Expected yearly return: 18.73%

Sony (SNE)
Currently trading at 40.1
Expected to trade at 225 withen 10 years.
Expected yearly return: 18.85%

Comcast (CMCSA)
Currently trading at 42.11
Expected to trade at 240 withen 10 years.
Expected yearly return: 19.18%


These companies are trading at about 70%-75% of their actual value despite a very good track record and growth expectation. Expect them to cross the line of 100% value withen a year.

 

[buffettgambler]

I would love to see what kind of fundamental quantification approach you took to determine that these stocks are undervalued.

From a hyrbrid DCCF quantification model, the only ones of these companines that can be construed as undervalued is Sony.

Been highly involved in the financial field for nearly 30 years, and I never understood why people go beyond 5 to 7 years in the valuation process without acknowleding the strucual and functional change that each industry possesses in the long run. Seems like you made your ten 10 return based on a perpetuity type return, which would be far from the case for any of these companies.

 

[Hawklet2]

I really don't expect the beverage or cable TV industry to be going anywhere soon.

By undervalued, I mean less valued by the public than average without a dramatic industry change. For example, TWX is trading at 19 P/E despite average of ~24 P/E and industry standard of greater than 30 P/E. There is no inherent risk in this company that should justify this low price. Therefore it will balance out eventually.