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Company name Royal Gold, Inc USA)
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $35.85
Target stock price (averages with growth) $41.59
Target stock price (averages with no growth) $27.14
Target stock price (manual assumptions) $56.92

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

Royal Gold, Inc., together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties, metal streams, and similar interests. The Company seeks to acquire existing royalty interests or to finance projects that are in production or in the development stage in exchange for royalty interests. The Company engages in a continual review of opportunities to acquire existing royalty interests, to create new royalty interests through the financing of mine development or exploration, or to acquire companies that hold royalty interests. The Company manages its business under a single operating segment, consisting of the acquisition and management of royalty interests. The Company’s revenue and long-lived assets are geographically distributed in Canada, Chile, Mexico, the United States, Australia, Africa and Other.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Royal Gold, Inc USA as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Royal Gold, Inc USA) calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $54.47
  • Growth: 0.11
  • Current EPS (TTM): $0.8
  • P/E: 68
  • Future EPS Calc: $1.34
  • Future Stock Price Calc: $91.66
  • Target stock price: $56.91

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I hope that this makes you a Confident Investor.

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stock market crash photo

 

Just because we’re experiencing our first stock market correction since 2011 doesn’t mean it’s time to panic. Here are six things you should be aware of when it comes to stock corrections.

1. Stock market corrections happen often

The first thing you should know is that stock market corrections happen — and fairly often. The U.S. economy naturally peaks and troughs over time, and in response the stock market will also have its peaks and troughs.

2. Stock market corrections rarely last long

In a broader context, while a stock market correction is an inevitable part of stock ownership, corrections last for a shorter period of time than bull markets.

3. We can’t predict what’ll cause a stock market correction

A stock market correction may be inevitable, but one thing they aren’t is predictable.

4. Stock market corrections only matter if you’re a short-term trader

Another important point you should realize is that stock market corrections really aren’t an issue if you remain focused on the long-term with retirement as your goal. The only people who should be worried when corrections roll around are those who’ve geared their trading around the short-term, or those who’ve heavily leveraged their account with the use of margin.

5. They’re a great time to buy high-quality stocks at a bargain

For the long-term investor, a stock market correction is often a great time to pick up high-quality companies at an attractive valuation.

6. They’re also a good reminder to reassess what you own

Lastly, a stock market correction is a good reminder for long-term investors to reassess their holdings.

This post is based on the great content written in 6 Things You Should Know About a Stock Market Correction, you should go there to read more about this subject.

stock market crash photo

Photo by AZRainman

Photo by wsilver

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Over the past few years, the richest company in the world has continued borrowing increasing amounts of money from all over the world. Apple’s [stckqut]AAPL[/stckqut] debt position has ballooned considerably ever since it launched its capital return program in 2012. Including commercial paper and long-term debt (current and noncurrent), Apple had an incredible $54 billion in debt at the end of the second quarter, a figure that’s been steadily rising over the years.

What’s more, after the quarter closed Apple detailed plans to raise even more debt capital. The Mac maker sold $2 billion in its first sterling-denominated bond offering in July, then proceeded to sell another $2 billion in so-called “Kangaroo” bonds in Australia as it continues to diversify its credit investor base.

There are many benefits of this debt strategy that have been regularly noted by investors. Apple gets to avoid repatriation taxes since it doesn’t need to tap foreign reserves, which now consist of nearly 90% of total cash. It gets to fund its share repurchase program, driving significant earnings accretion. Heck, Apple even gets to lower its weighted average cost of capital, or WACC, by essentially swapping out equity capital for debt capital.

Even with the low-interest environment that we’re currently in, all that debt adds up and can cost a pretty penny. Yet here’s another reason why investors should love the company’s debt strategy: all that debt comes at no net cost.

Source: 1 More Reason Why Investors Should Love Apple Inc.’s Debt Strategy — The Motley Fool