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Roy Ward

Value Investment Specialist, Chief Analyst, Cabot Benjamin Graham Value Investor

J. Royden Ward has spent his entire career seeking strong investment returns for his clients while keeping risk low. In 1969, he developed a computerized model of stock selection based on formulas created by investment legend—and Warren Buffett mentor—Benjamin Graham, and since 2003, he’s been spreading his wisdom far and wide as chief analyst of Cabot Benjamin Graham Value Investor.

From this author
How often do you trade your stocks during a year? Do you turn over your portfolio an average of once a year, twice a year or a dozen times a year? In this age of super-fast computers that are programmed to trade in nanoseconds, should we trade more often to keep up with the ever-changing stock market? My opinion is no.
Standard & Poor’s lists a whopping 196 biotechnology companies in its database, but AbbVie (ABBV) stands out above the rest. The company is growing rapidly but due to the correction in biotech stocks, it’s now an undervalued stock.
The two strategies that I use to find consistent winning stocks involve evaluating sales and book value. I prefer sales and book value rather than earnings, because earnings fluctuate wildly and are often engineered, using an endless system of “adjustments.” Valuations based on sales or book values are more reliable when assessing the past, present and future prospects for companies.
Valeant Pharmaceuticals International (VRX 37.00) has garnered a lot of news lately. Valeant’s stock continues to rise after the company won approval from loan holders to amend terms of the company’s debt, granting the pharmaceutical company an additional month to file its annual report.
There are hundreds of undervalued stocks in the market today. I have listed 10 high-quality companies that have been beaten up badly, but will likely recover during the next 12 months. All 10 of the stocks in my list are rated as undervalued by Standard & Poor’s, and each stock is rated above average quality by S&P.
Not all stocks are falling in this volatile market. The stock prices of leading companies operating in stable industries generally hold steady during market declines. I advise investing at least 50% of your portfolio into ultra-safe stocks and ETFs. I have assembled a list of 12 ultra-safe companies for your review.
The Standard & Poor’s 500 Index and Dow Jones Industrial Average are down about 8.5% thus far in 2016. Stocks that soared last year are getting clobbered this year. No wonder investors are worried! But now is not the time to panic! The current stock market is frustrating, for sure, but you can pursue strategies that will lead to better performance in the months ahead.
Chief Analyst Roy Ward answers some common subscriber questions.

I scanned my database to find 10 stocks with the right credentials to perform very well in 2016. My top 10 picks are stocks of U.S. companies with exceptional prospects for 2016. All of my stock selections are selling at bargain prices, and all have the potential to easily beat the stock market indexes in 2016!
As Warren Buffett said, “Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Two stocks that I think Mr. Buffett should own are Johnson Controls and Whirlpool.
Weight Watchers International (WTW 15.75) received a huge boost on the news that Oprah Winfrey had invested $43 million in the stock and will take a seat on the company’s board of directors and become a spokesperson. The news sent Weight Watchers’ stock price soaring 132% last week to 15.75. Here are my thoughts on the stock.
There’s a war going on! Growth investors are proclaiming that Apple is done, kaput. It’s history. To a value investor, however, Apple shares are an irresistible bargain! Apple sells at a very reasonable 13 times earnings and pays a nice dividend yielding 1.9% annually. Further, Apple’s PEG ratio (current P/E divided by the forecast growth rate) is also very attractive at 0.86.
My value approach seems contrary to the thinking of most investors, but I believe selling when the market is high and buying when the market is low makes sense.
My approach to investing is conservative; the tortoise wins the race. But the race is only won over an extended period of time where cultivating patience is an absolute necessity. My objective is to stay fully invested at all times in stocks and bonds, and only invest in stocks and bonds that will decline a minimal amount during stock market corrections.
Dividends are the most reliable indication of a company’s growth and stability. Dividends are the payments of a company’s hard-earned profits. A company’s ability to continually pay dividends provides concrete evidence that the company is performing well.
Kevin Matras of Zacks Investment Research recently penned an interesting article. The article focused on one calculation to find undervalued stocks that will consistently outperform the stock market indexes.
An article in this week’s Barron’s suggests that contrarian investors can easily beat any of the stock market indexes.
If you’re retired or approaching retirement, developing a strategy to fit your goals can be difficult.
When I consider the icons who made contributions to the science of investing, many names come to mind.
Fossil Group (FOSL) is an international designer, marketer and distributer of consumer fashion accessories. Fossil’s products are distributed in myriad ways: wholesale in countries where it has a physical presence, direct to the consumer through its retail stores, from websites and through third-party distributors. Fossil’s wide...
I always find several excellent ideas among the comments and suggestions from our readers.
I scanned my database to find six stocks with the right credentials to perform very well in 2015.
The best indication that a company is prospering is its history of dividend payments.
Allibaba will go public on on Friday and will likely open at a price possibly as high as 75.
Any stock can be undervalued. It can be a company that’s underperforming and has been given a low valuation.
Here’s one questions from a reader: How should I develop my portfolio for retirement?
An infinite number of methods are available for you to evaluate stocks with the same intended goal.
Two stocks with low PEG ratios adjusted for dividends are Fortress Investment (FIG) and Noble Corp. (NE).
The current stock market is frustrating, but you can pursue strategies that will lead to better performance.