In the July 18 edition of Forbes magazine, Ken Fisher presented five stocks that he believes are cheap, and recommends them for your portfolio… and of one, he simply says, “Buy it.”
Computer Sciences Corp. (CSC, Financial)
Currently priced at $38.07
P/E: 8.2
P/S: 0.4
P/B: 0.8
GuruFocus indicates a fair value of $114.94
Selling at approximately 8.5 x FCF
Guru portfolios: Joel Greenblatt, James Barrow, Brian Rogers, Jean-Marie Eveillard, Dodge & Cox and David Dreman
Lam Research Corp. (LRCX, Financial)
Currently priced at $43.23
P/E: 7.5
P/S: 2.5
P/B: 2.3
GuruFocus indicates a fair value of $132.77
Selling at approximately 13.5 x FCF
Guru portfolios: George Soros, David Tepper, Joel Greenblatt and Ken Heebner
Aixtron SE (AIXG, Financial)
Currently priced at $31.73
P/E: 11.6
P/S: 3.1
P/B: 3.6
GuruFocus indicates a fair value of $62.69
Selling at approximately 16.7 x FCF
Guru portfolios: All have sold out
Towers Watson & Co. (TW, Financial)
Currently priced at $66.38
P/E: 18.6
P/S: 2.1
P/B: 2.1
GuruFocus indicates a fair value of $71.02
Selling at approximately 18 x FCF+
Guru portfolios: Joel Greenblatt, Ron Baron and Steve Mandel
Saur-Danfoss Inc. (SHS, Financial)
Currently priced at $53.82
P/E: 15
P/S: 1.6
P/B: 5.5
GuruFocus indicates a fair value of $80.23
Selling at approximately 11.9 x FCF
Guru portfolios: Joel Greenblatt
Noticeably absent from the list of gurus holding these stocks in the portfolio was Ken Fisher. Fisher points out that Lam Research (LRCX) is only selling for 1.8 times revenue, but Applied Materials (AMAT, Financial) looks to be more interesting to me and appears to be cheaper. Rumors are that Lam might be interested in obtaining Novellus (NVLS, Financial).
Two stocks piqued my interest on Fisher’s list. Computer Science Corp. (CSC) appears cheap and is near the 52-week low. There was much bad news regarding this stock, but I believe most has now been priced into the current price. The other is Tower Watson & Co. (TW)
Lastly, Saur-Danfoss is the stock Fisher says to “buy.”
Obviously, a lot more research should be done before implementing any purchase.
Disclosure: I have no positions in any of the stocks mentioned in this article, nor do I intend to initiate purchases with the next 72 hours.
Computer Sciences Corp. (CSC, Financial)
Currently priced at $38.07
P/E: 8.2
P/S: 0.4
P/B: 0.8
GuruFocus indicates a fair value of $114.94
Selling at approximately 8.5 x FCF
Guru portfolios: Joel Greenblatt, James Barrow, Brian Rogers, Jean-Marie Eveillard, Dodge & Cox and David Dreman
Lam Research Corp. (LRCX, Financial)
Currently priced at $43.23
P/E: 7.5
P/S: 2.5
P/B: 2.3
GuruFocus indicates a fair value of $132.77
Selling at approximately 13.5 x FCF
Guru portfolios: George Soros, David Tepper, Joel Greenblatt and Ken Heebner
Aixtron SE (AIXG, Financial)
Currently priced at $31.73
P/E: 11.6
P/S: 3.1
P/B: 3.6
GuruFocus indicates a fair value of $62.69
Selling at approximately 16.7 x FCF
Guru portfolios: All have sold out
Towers Watson & Co. (TW, Financial)
Currently priced at $66.38
P/E: 18.6
P/S: 2.1
P/B: 2.1
GuruFocus indicates a fair value of $71.02
Selling at approximately 18 x FCF+
Guru portfolios: Joel Greenblatt, Ron Baron and Steve Mandel
Saur-Danfoss Inc. (SHS, Financial)
Currently priced at $53.82
P/E: 15
P/S: 1.6
P/B: 5.5
GuruFocus indicates a fair value of $80.23
Selling at approximately 11.9 x FCF
Guru portfolios: Joel Greenblatt
Noticeably absent from the list of gurus holding these stocks in the portfolio was Ken Fisher. Fisher points out that Lam Research (LRCX) is only selling for 1.8 times revenue, but Applied Materials (AMAT, Financial) looks to be more interesting to me and appears to be cheaper. Rumors are that Lam might be interested in obtaining Novellus (NVLS, Financial).
Two stocks piqued my interest on Fisher’s list. Computer Science Corp. (CSC) appears cheap and is near the 52-week low. There was much bad news regarding this stock, but I believe most has now been priced into the current price. The other is Tower Watson & Co. (TW)
Lastly, Saur-Danfoss is the stock Fisher says to “buy.”
Obviously, a lot more research should be done before implementing any purchase.
Disclosure: I have no positions in any of the stocks mentioned in this article, nor do I intend to initiate purchases with the next 72 hours.
