Value Investing News

Geoff Gannon talks about where he gets investing ideas. He uses 4 examples: Bancinsruance (BCIS), Birner Dental (BDMS), George Risk (RSKIA), and Solitron Devices (SODI). He says he reads blogs and runs screens.

Geoff explains how to calculate a stock’s 10-year average real free cash flow yield. He tells you why the number matters and how to use it. He then gives an example using Birner Dental Management Services (BDMS). Geoff says it’s important to separate changes in the value of a product from changes in the value of money.

Geoff answers a listener's question about Professor Altman's "Z-Score". Geoff says the Z-Score is a measure used to predict bankruptcy. The score comes from using 5 different variables. Geoff explains each of the five variables. And he teaches you how to calculate the Z-Score for any stock.

Geoff gives you some safety checks to make sure you don't buy into a value trap. He suggests using Piotroski's F-Score, Altman's Z-Score, and 10-year average free cash flow data. Finally, Geoff mentions Omnicom (OMC) and Birner Dental Management Services (BDMS) make up 40% of his portfolio.

Having narrowly missed the tech bubble bursting, I purchased my first dividend stock on December 11, 2003. I had heard dividend investments were supposed to be safer, but knew very little else about the strategy. I was fortunate enough to accidentally buy enough good dividend stocks to learn the “secret” of dividend investing.

The most important dividend events of the past week included news that have regulators warned financial companies to restrict dividend increases and stock buybacks for the near future. According to Reuters, executives from Goldman Sachs (GS) and JP Morgan Chase (JPM) have had talks with regulators about returning more cash to shareholders.