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Company name Regions Financial Corporation
Stock ticker RF
Live stock price [stckqut]RF[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $11.52
Target stock price (averages with growth) $-6.26
Target stock price (averages with no growth) $-21.83
Target stock price (manual assumptions) $8.58

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

Regions Financial Corporation (Regions) is a financial holding company. Regions operate throughout the South, Midwest and Texas. The Company provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other specialty financing. Regions conduct its banking operations through Regions Bank, a commercial bank. As of December 31, 2011, Regions operated approximately 2,100 automated teller machines (ATMs) and 1,726 banking offices in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas and Virginia. It provides additional financial services through its subsidiaries, which includes Morgan Keegan & Company, Inc. and Regions Insurance Group, Inc. In April 2012, it sold Morgan Keegan & Company, Inc. and related affiliates to Raymond James

 

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.

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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I have not thought of the Coffee Can portfolio in many years until I read a recent article on Daily Reckoning. This excellent article reminded me of the decades old investing philosophy. Basically, the concept is to buy truly excellent companies and then ignore the investment. The theory is that constantly worrying about the various movements in the market will only give you an ulcer. It will also ruin your return if you react at the wrong time. If you have enough diversity in your holdings, surely one of them will result in a huge gain.

We have all heard the stories about someone’s aunt that found her recently departed husband’s desk drawer full of stock certificates from IBM, Apple, or Wal-Mart that were bought many years earlier and then forgotten. These heart-warming stories are typically told that the aunt was destitute until the discovery but then was financially independent for the rest of her days.

There is a significant problem with the Coffee Can Portfolio. I believe I have solved this problem with my GOPM (Grow on Other People’s Money) strategy that I describe in my book, The Confident Investor. The basic problem is that most people do not have sufficient reserve funds to  diversify their holdings appropriately. My strategy gives investors the ability to diversify their holdings and grow their investment at a more rapid pace. Once the investor accumulates a  sufficiently significant position in a particular company, the Coffee Can principle starts. The investor can sit on that position of a great company and forget about the investment for many years.

Jump over to Daily Reckoning and read about the Coffee Can Portfolio. It is a good article and worth your time.

It is also worth your time to read my book, The Confident Investor, if you are interested in growing your portfolio. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.

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Company name Unilever plc (ADR)
Stock ticker UL
Live stock price [stckqut]UL[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $34.12
Target stock price (averages with growth) $41.81
Target stock price (averages with no growth) $41.69
Target stock price (manual assumptions) $30.57

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

Unilever PLC (PLC), is a supplier of fast moving consumer goods. The two parent companies, Unilever N.V. (NV) and PLC, together with their group companies, operate as Unilever Group (Unilever). Its products are grouped into four principal areas: Personal Care, Home Care, Foods and Refreshment. It operates in three regions: Asia, Africa and Central and Eastern Europe, the Americas and Western Europe. In June 2011, Colgate-Palmolive Company purchased Sanex personal care brand from Unilever PLC. On 1 December 2011, it sold Culver Specialty Brands division to B&G Foods, Inc. On December 6, 2011, it completed acquisition of 82% of the outstanding shares of Concern Kalina. On December 20, 2011, it acquired Ingman Ice Cream. On January 27, 2011, it purchased EVGA’s ice cream brands and distribution network in Greece. On May 10, 2011, it acquired Alberto Culver, Inc. In August 2012, ConAgra Foods Inc acquired Bertolli and P.F. Chang’s Home Menu frozen meals businesses from PLC.

 

Confident Investor comments: At this price and at this time, I do not 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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If you want your children to be better off in life than you are or then your parents, you need to teach them to invest and save. The younger they are, the longer they have to accumulate great wealth. It is never too early to start to worry about the rest of your life.

Conversely, it is never too late to worry about your future as well. If you haven’t done a good job of preparing for your retirement and your “golden years” then don’t wait! Start now! If you have violated any of these rules, STOP!

I found these rules on Mint.com. It is a very good article and you should jump over and read more.

  1. Track Your Income and Expenses
  2. Avoid or Eliminate Debt
  3. Set Financial Goals
  4. Buy a Home and Pay It Off As Quickly As Possible
  5. Buy Insurance
  6. Invest Intelligently

The author also talks about buying his book and giving his book to all of your children. I won’t argue that you should do this, but you would be much wiser to buy my book, The Confident Investor. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in ebook formats for Nook, Kindle, and iPad.

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Company name Community Health Systems
Stock ticker CYH
Live stock price [stckqut]CYH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $61.87
Target stock price (averages with growth) $75.55
Target stock price (averages with no growth) $55.15
Target stock price (manual assumptions) $39.9

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

Community Health Systems, Inc. is an operator of hospitals in the United States. The Company provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets throughout the United States. As of December 31, 2011, the Company owned or leased 131 hospitals, including four stand-alone rehabilitation or psychiatric hospitals. These hospitals are located across 29 states, with an aggregate of 19,695 licensed beds. The Company generates revenues by providing a range of general and specialized hospital healthcare services to patients in the communities in which it is located. Services provided by the Company’s hospitals include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. In July 2012, the Company’s subsidiaries acquired all of the assets of Memorial Health Systems in York, Pennsylvania.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock. My only concern is that sales growth is starting to slow and if the company doesn’t reverse this trend, it could be in trouble. When sales drops, it is much harder to keep the other metrics growing.

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