Applying The Deep Discount Strategy To Develop A Valuation And Investment … – Seeking Alpha

Applying The Deep Discount Strategy To Develop A Valuation And Investment … – Seeking Alpha
News from Applying The Deep Discount Strategy To Develop A Valuation And Investment … – Seeking Alpha:

The Deep Discount Strategy is a Value investing approach to buying select stocks at a price below their fair value. The basis of the strategy is as follows:

  • Quality: Choose only the highest quality companies with a stellar record of consistently high growth across a number of metrics.
  • Value: Determine the fair value of the company based on anticipated future growth and a minimum desired compound annual return of 15%.
  • Target: Buy and hold the company only when the share price is below a margin of safety, set significantly lower that the fair value price.
  • Enhance: Purchase additional shares if the stock price moves lower while the fair value remains the same.

In this article we will apply the Deep Discount Strategy to rue21 (RUE) to develop a valuation and target purchase price. Rue21 is a clothing retailer targeted at teens, with stores across most of the United States. Stores are located primarily in small towns where there is less competition, yet the company offers very fashionable clothing items and changes themes frequently to keep “fresh”. The company currently has over 800 stores and is expanding at a rate of more than 100 stores per year. The company is also remodeling many of its existing stores to a new…………… continues on Applying The Deep Discount Strategy To Develop A Valuation And Investment … – Seeking Alpha

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BAE Systems indentifies five specific areas for investment in M’sia as part of …
News from The Borneo Post:

Posted on July 31, 2012, Tuesday

INVESTMENT AREAS: BAE Systems has identified five specific industries for investment in Malaysia as part of its strategy to expand its relationship with local partners.

LONDON: BAE Systems has identified five specific industries for investment in Malaysia – systems integration, green technology, nano technology, homeland security and electronic warfare – as part of its strategy to expand its relationship with local partners.

“The defence giant is not only looking for new partners with industries but also collaborations with universities and government agencies,” its senior  Industrial Partnerships and Offset manager, Mike Perret, told Bernama.

Perret said BAE Systems recently signed a memorandum of understanding with Composites Technology Research Malaysia Systems Integration Sdn Bhd to set up system integration business and talked to the company on a number of opportunities.

“We’re looking at rail and military aircraft side,” Perret said, adding that systems integration…………… continues on The Borneo Post

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