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Company name Goldcorp Inc. (USA)
Stock ticker GG
Live stock price [stckqut]GG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $41.18
Target stock price (averages with growth) $64.86
Target stock price (averages with no growth) $62.3
Target stock price (manual assumptions) $34.23

The following company description is from Google Finance: http://www.google.com/finance?q=gg

Goldcorp Inc. (Goldcorp) is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America. As of December 31, 2011, its producing mining properties were consisted of the Red Lake, Porcupine and Musselwhite gold mines in Canada; the Penasquito gold/silver/lead/zinc mine, Los Filos and El Sauzal gold mines in Mexico; the Marlin gold/silver mine in Guatemala; the Alumbrera gold/copper mine (37.5% interest) in Argentina; the Marigold (66.7% interest) and Wharf gold mines in the United States. As of December 31, 2011, its development projects included the Cerro Negro gold project in Argentina; the Eleonore and Cochenour gold projects in Canada; the Pueblo Viejo gold project (40% interest) in the Dominican Republic; the El Morro gold/copper project in Chile; the Noche Buena and Camino Rojo gold/silver projects in Mexico, and the Cerro Blanco gold/silver project in Guatemala.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Company name Fossil Inc
Stock ticker FOSL
Live stock price [stckqut]FOSL[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $144.55
Target stock price (averages with growth) $185.72
Target stock price (averages with no growth) $134.61
Target stock price (manual assumptions) $138.5

The following company description is from Google Finance: http://www.google.com/finance?q=fosl

Fossil, Inc. a global designer, marketer and distributer company that specializes in consumer fashion accessories. The Company’s offerings include a line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing. Its products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company do not maintain a physical presence. It operates in four different segments: the North America Wholesale segment, the Europe Wholesale segment, Asia Pacific Wholesale segment and the Direct to Consumer segment. Effective April 2, 2012, it acquired Skagen Designs, Ltd. and certain of its international affiliates. On December 31, 2012, the Company purchased substantially all of the assets of Bentrani Watches, LLC (Bentrani).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. The biggest reason that the company dropped to Fair is due to its lack of growth of P/E and that is less concerning to me than other indicators. I am leaving the company on my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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It is important for any investor to be diversified in a range of stocks that fall in different industries. This way you are not doubling up on your risk for a segment disruption. In order to do this, you should probably have at least 20 stocks in your portfolio once it is at least partially developed.

I need to stress that last part a bit more, full diversification is not necessarily possible until your Confident Investor portfolio is at least partially developed.

As I explained in an earlier article, you should break up your portfolio money into 10 or more allotments. This means that you can have 10 different stocks fully invested at any given time.

At any given time, there are about 50 companies that are on my Watch List on this site. Not all of these companies are going to be experiencing upward momentum (a bull market) at the same time. Perhaps only a fraction of them are moving up, these are the companies that you will invest in using my Grow on Other People’s Money (GOPM) methodology.

As an example, lets assume that 7 companies are increasing in value at this time and you have divided your portfolio into 15 allotments of $6,000 each. That means you will have $42,000 invested (7 x $6,000). You will also have $48,000 sitting in cash waiting for another company to start increasing in price. As time progresses, one of these 7 companies starts to drop in price and the indicators I describe in my book, The Confident Investor, tell you to sell.  You sell enough stock in that company to recoup your original $6,000 and are left with 24 shares of the stock that are free and have not cost you any money.

Over time you will find that you have invested in many of the 50 companies on the Watch List. You will still have your $90,000 in cash but you will also have differing amounts of free stock in each company. This stock was paid for with Other People’s Money and it is now growing in your account.  In some companies you may only have 1 or 2 shares but in other companies you may have hundreds of free shares. At this point, you will find that you are quite diversified since you have free shares in several dozen companies.

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Company name First Financial Bancorp
Stock ticker FFBC
Live stock price [stckqut]FFBC[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $24.37
Target stock price (averages with growth) $22.51
Target stock price (averages with no growth) $16.28
Target stock price (manual assumptions) $15.97

The following company description is from Google Finance: http://www.google.com/finance?q=ffbc

First Financial Bancorp. (First Financial) is a bank holding company. First Financial is engaged in the business of commercial banking and other banking and banking-related activities through its wholly owned subsidiary, First Financial Bank, National Association (the Bank). The Bank provides banking and financial services products through its three lines of business: commercial, retail and wealth management. The commercial and retail units provide banking services to individuals and businesses, which includes commercial lending, real estate lending and consumer financing. As of September 30, 2012, the Bank had $3.9 billion in loans and $4.9 billion in deposits. On December 10, 2012, the Bank opened a new banking center at Hessville. On December 17, 2012, the Bank opened a new banking center at Anderson. As of December 31, 2012, the Banks operated 122 banking centers.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock. I am most concern with the lack of growth in revenue.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Company name Extra Space Storage, Inc.
Stock ticker EXR
Live stock price [stckqut]EXR[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $68.89
Target stock price (averages with growth) $67.03
Target stock price (averages with no growth) $44.63
Target stock price (manual assumptions) $48.18

The following company description is from Google Finance: http://www.google.com/finance?q=exr

Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops professionally managed self-storage facilities. As of December 31, 2011, Extra Space Storage Inc. held ownership interests in 697 operating properties. Of these operating properties, 356 are wholly owned, and 341 are owned in joint venture partnerships. An additional 185 operating properties that are owned by franchisees or third-parties in exchange for a management fee, bringing the total number of operating properties, which it owns and/or manages to 882. The Company operates in three segments: property management, acquisition and development; rental operations, and tenant reinsurance.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. The main reasons that the company has fallen to a Fair Company are the lack of increase in its P/E ratio and its revenue and income per employee. These items tend to be a bit cyclical and self-correcting so I am leaving the company on my Watch List for now.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.