Hello guys
what about EVEP has paid dividends during the toughest times (inc 2008),
the stock has more roam to go down , my entry will be close to 12,?
I have an excel spreadsheet that I use to filter out David Fish CCC list.
I plugged in the latest CCC list and took a look at EVEP.
Out of 11 criteria that I check, 9 come out to be "red":
1. They are raising dividends for only 8 years (I require at least 10).
2. The dividend yield is 16.07% - this is too good to be true for any good company. If they were a good investment than the institutions would've purchased tons of it for a 16% yield (I look for 2-10 range).
3. Their past 5 years growth is -16.3% (I require at least 5% growth).
4. Their market cap is 0.936B (I made that mistake before, I require 2B at least now).
5. Their Debt on Equity is 1.15 which means that they owe more than they are worth (I rule out anything with D/E over 0.8).
6. Their 1-year Dividend growth rate is 0.52 - this is lower than inflation (I require at least 3%)
7. Their 3-year Dividend growth rate is 0.52 - this is lower than inflation (I require at least 3%)
8. Their 5-year Dividend growth rate is 0.53 - this is lower than inflation (I require at least 3%)
9. Their 10-year Dividend growth rate is n/a - this is due to condition #1 basically (if they had a 10 year dividend streak than I require at least 3% DGR).
Based on the CCC list I would rule out this company and not look at it much.
PS
If it would've had one or even two red cells than I would've conducted further research, but with 9 red cells they have no chance ending up in my portfolio...
Thank you so much for your insight ,
is there anywhere i can get the ccc list ?
what are the stocks in oil sector your focusing on ?
cheers
kumar
(01-08-2015, 07:47 AM)daat99 Wrote: [ -> ]I have an excel spreadsheet that I use to filter out David Fish CCC list.
I plugged in the latest CCC list and took a look at EVEP.
Out of 11 criteria that I check, 9 come out to be "red":
1. They are raising dividends for only 8 years (I require at least 10).
2. The dividend yield is 16.07% - this is too good to be true for any good company. If they were a good investment than the institutions would've purchased tons of it for a 16% yield (I look for 2-10 range).
3. Their past 5 years growth is -16.3% (I require at least 5% growth).
4. Their market cap is 0.936B (I made that mistake before, I require 2B at least now).
5. Their Debt on Equity is 1.15 which means that they owe more than they are worth (I rule out anything with D/E over 0.8).
6. Their 1-year Dividend growth rate is 0.52 - this is lower than inflation (I require at least 3%)
7. Their 3-year Dividend growth rate is 0.52 - this is lower than inflation (I require at least 3%)
8. Their 5-year Dividend growth rate is 0.53 - this is lower than inflation (I require at least 3%)
9. Their 10-year Dividend growth rate is n/a - this is due to condition #1 basically (if they had a 10 year dividend streak than I require at least 3% DGR).
Based on the CCC list I would rule out this company and not look at it much.
PS
If it would've had one or even two red cells than I would've conducted further research, but with 9 red cells they have no chance ending up in my portfolio...
I would never by a stock at 16% yield. Mr Market is very good at keeping sustainable companies well under 6%.
There's a reason it's 16%. As an example Tesco Plc was 12% at the middle of last year, a month or so later it cut it's dividend by 75% then today totally.
I would avoid EVEP as well, the dividend is not sustainable.
See LINE and SDRL as some recent examples.