Dow Jones Industrial Average 25790.35 (UP) Week ending 08-24-2018
S & P 500 Average - 2874.69
There is nothing very exciting about washing machines , dishwashers, refrigerators and microwave ovens. (Unless you are building a new kitchen or house.)
Whirlpool, (symbol NYSE: WHR, Price $127.15) is very good at making money selling this consumer goods equipment.
Whirlpool Corporation is the world's leading major home appliance company, with approximately $21 billion in annual sales, 92,000 employees and 70 manufacturing and technology research centers in 2017. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in nearly every country throughout the world.
I believe that the stock of WHR should be trading much higher than its current price based on the earnings going forward. It is running into some short term turbulence here based on the cost rise created by the steel tariffs and because of a shortage of truck drivers. This has caused the stock price to be off by 24.62% YTD year to date. So the whole market capitalization of the company is only about $8.78 billion dollars right now with 69 million shares outstanding. The company bought back shares at a dutch auction in April at around $158.25 per share. I believe they are going to be buying back more shares but I could not find a source to confirm that. Sales have been rising by 3% a year, but in Asia sales rose by 14.5%.
Here is what I am looking at. The earnings per share for this year are projected at $14.38 per share according to Barron's and CBS MarketWatch. Next year earnings are projected at $16.63 per share. That is a forward PE of 7.66. The company is also trading at a Price to Sales ratio of 0.41. I feel these earnings give you a good margin of safety.
I believe that this stock should trade at between $180.00 to $230.00 per share. I am not sure how all the hotshot analyst are missing this, but they seem to be blinded by their "Revenue Growth" glasses? WHR has some debt also, but it seems very manageable.
This company also pays a $4.60 dividend each year, (3.62% dividend), which seems to be very safe.
I say to buy into it in the next 45 days. ( I own it here). September and October for many years have traded as down months, so you may be able to get it even cheaper is this time frame.
I consider this a 2 year to 3 year investment, so don't get impatient with it.
(I saw the above on a twitter comment on Tobias Carlisle's - Greenbackd - Value investing website) .
Let's make some money on Whirlpool!
Freewilly
S & P 500 Average - 2874.69
Whirlpool, (symbol NYSE: WHR, Price $127.15) is very good at making money selling this consumer goods equipment.
Whirlpool Corporation is the world's leading major home appliance company, with approximately $21 billion in annual sales, 92,000 employees and 70 manufacturing and technology research centers in 2017. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in nearly every country throughout the world.
I believe that the stock of WHR should be trading much higher than its current price based on the earnings going forward. It is running into some short term turbulence here based on the cost rise created by the steel tariffs and because of a shortage of truck drivers. This has caused the stock price to be off by 24.62% YTD year to date. So the whole market capitalization of the company is only about $8.78 billion dollars right now with 69 million shares outstanding. The company bought back shares at a dutch auction in April at around $158.25 per share. I believe they are going to be buying back more shares but I could not find a source to confirm that. Sales have been rising by 3% a year, but in Asia sales rose by 14.5%.
I believe that this stock should trade at between $180.00 to $230.00 per share. I am not sure how all the hotshot analyst are missing this, but they seem to be blinded by their "Revenue Growth" glasses? WHR has some debt also, but it seems very manageable.
This company also pays a $4.60 dividend each year, (3.62% dividend), which seems to be very safe.
I say to buy into it in the next 45 days. ( I own it here). September and October for many years have traded as down months, so you may be able to get it even cheaper is this time frame.
I consider this a 2 year to 3 year investment, so don't get impatient with it.
 |
| I told my friend to sign up for her 401k at work and she said "there's no way I can run that far." |
Let's make some money on Whirlpool!
Freewilly
No comments:
Post a Comment