February 20, 2017

Why are Large Caps still Increasing?

Why is Large Caps Increasing when their Earnings Haven’t Changed?

 

It would make sense if a company’s share price increased roughly in time with earnings and profits. It’s simple, logical, and based purely on the core fundamentals of the company. This logic even worked between 1995 and 2012 as shown below.

 

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Most everything moved in line with the overall performance of the screen. They may have larger movements in either direction, but the general shape matches up pretty well.

So what does it look like after 2012?

 

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There is no rhyme to this rhythm. There is honestly no way to explain this sort of behavior from simply looking at the fundamentals of the company.…

February 2, 2017

Protecting Your Portfolio in a Possible Recession

Recession Protection

As people become more jumpy when it comes to the market, I decided to take it upon myself to build a screen that we could use in order to protect ourselves in the event that we do enter another recessionary period. Now, I want it to be known that I don’t necessarily believe that another recession is imminent; rather, I just like being prepared for any situation.

Sadly, there are only two recessions over the past 20 years, so we don’t have a ton of data to work with which results in a lot of guesswork and relying on fundamental factors to find companies that are secure rather than trading via speculation.…

October 6, 2015

CHD, A Safe Bet in a Down market

Summary

  • Church and Dwight has multiple “green flags” that suggests a strong company
  • Church and Dwight provides goods that are necessary within the household
  • Church and Dwight has increased over 2600% over the past twenty years.

In the words of Yahoo Finance, CHD “develops, manufactures, and markets household, personal care, and specialty products in the United States.”


Church & Dwight Co is an interesting company to analyze for a few reasons:

  • Church & Dwight hold a number of high profile brands in their portfolio
  • Even though they are a large company, they have still grown their sales and net income over the past three years.