I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is totally free. I hope you enjoy!
When opportunity knocks, answer the door.
We’ve all heard that before, right?
Well, what if opportunity is constantly knocking on the door? What if opportunity is practically banging your door down?
What do you do then?
You run as fast as you can to open that door!
That – opportunity knocking – is kind of what’s happening every single day of our lives, assuming, by reading this article, you live in a developed country where access to all modern-day accouterments is easy.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
Very interesting pick actually. I don’t think I have heard of them before but probably would be something I would have seen their products before. I really like rural/farming style stocks. There will always be a need for agriculture and as the world population continues to climb there will be a bigger need for higher efficiency and production. Thanks for sharing.
BHL,
It’s fundamentally solid. And my valuation model was actually quite conservative, yet the stock still appears to be significantly undervalued. It’s just a situation where the recent weakness in price (not necessarily value) seems undue. But time will tell. And some of these B&M players need to really start taking e-commerce more seriously and/or figure that angle out.
Cheers!
Agree it’s an interesting pick, haven’t really researched them before, but have heard of them. I’m curious if the B&M of the rural world needs to worry as much as some of the other retailers. If I’m buying a large farm machine I’m going to want to look at it first, kind of like cars, so not sure if the fear of eCommerce is as justified here. Great write up as always thanks Jason!
DD,
Indeed. That was one of the points I brought up in the article. Many of the products they sell are either C.U.E. or too big to ship. That said, they’re not invulnerable. And poking around their e-commerce offerings/progress wasn’t terribly encouraging.
Thanks for dropping by!
Best regards.
Very interesting pick indeed, I just finish my valuation on TSCO this morning hahaha! While I think it’s a great opportunity, I’m a bit worried about same store sales being down by about 2%. TSCO now grows their revenue through opening new stores, but this strategy will end-up by market saturation and cannibalization over the long haul. They will need to find a way to generate in-store growth as well.
Cheers,
Mike.
Mike,
There’s a seasonality and cyclicality to the business model, which can impact some of that. The long-term trend is okay, though there’s been some dropping that’s occurred as saturation increased. That said, the margins they’re getting out of these stores is mighty impressive. If one had to deal with falling comps and razor-thin margins, that would be a lot more concerning. If they can come anywhere near that forecast for growth, the stock is very cheap. But time will tell how they perform.
Cheers!
Looks like a fantastic business! Just picked up a grand worth myself!
You know how you know it’s a great long term buy? The Yahoo Finance commenters are talking about the incredible buying opportunity. Usually when a great stock is on sale, you hear them screaming about how the business is bottoming out and the CEO has got to go.
Sincerely,
ARB–Angry Retail Banker
ARB,
This one flies pretty far under the radar. I wasn’t even aware that people are talking about it at all, although I don’t follow comments or news boards or anything else.
Best of luck with it! 🙂
Cheers.