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Seeking Blue Revisit

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We developed an investment thesis based on the discounted cash flow valuations of some of the most credit worthy companies in the S&P 500.  All of them blue chips, trading at substantial discounts to their net worth, we called this “Seeking Blue”.  You can see our original analysis at http://workshops.saxangle.com/seeking-blue/.  We decided to revisit this valuation.  The bottom line is that many of these companies remain substantially undervalued.  And this is with our pessimistic scenario of zero growth and pressure on operating margins. The results from July 18,2012 are below:   Description Ticker Price  7/18/12 5/3/13 Change Pfizer PFE  $23.14  $28.96 … Read more

Kellogg Rockets On Announced Purchase Of Pringles

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Kellogg (K) shot up over 5% on news that the food manufacturer would take over Diamond Food’s (DMND) failed deal with the chip company.  Kellogg will pay P&G almost 2.7 billion for  ownership of Pringles. “In April, Procter & Gamble signed a deal with Diamond Foods, which agreed to buy Pringles for roughly $2.4 billion, mainly in stock. Diamond, which had previously bought Pop Secret and Kettle brand potato chips, heralded the purchase and played up Pringle’s global presence and influence in grocery stores. But the deal got delayed, as Diamond was ensnared by an accounting scandal after short-sellers started … Read more