Category Archives: Miley Fundamental Portfolio

Miley Fundamental Portfolio Update

I finally have some updates for the portfolio.  I am dropping DXPE and KLIC.  DXPE has performed well but I think there are better choices, while KLIC has gone nowhere.  In their place, I am buying Outerwall (OUTR) and Skyworks Solutions (SWKS).  Outerwall is the operator of Redbox and Coinstar kiosks.  Even with today’s outside gains due to the announced price hike in Redbox prices, I think that the stock is grossly undervalued as the intrinsic value is about 148.  Revenue growth over the past 5 years was 29%, EPS growth was 46%, return on equity is 33% and estimated earnings growth is about 18%.  As for Skyworks Solutions, they are an innovator of high reliability analog and mixed signal semiconductors.  I put its intrinsic value at about 92, so the stock is undervalued as well.  Past revenue growth was 23%, EPS growth was about 33%, return on equity is almost 20% and estimated earning growth is about 19%.  I think both of these stocks are great choices for the coming year. read more

Fundamental Fund Update 3/3/14

Well, folks, it has been a while.   First, I have to admit defeat on VMI.  I sold it at a loss on February 21 after the company reported disappointing earnings and outlook.  I apologize for this pick, but even Warren Buffet makes mistakes.  Now for my replacement pick.  I am recommending Spirit Airlines, Inc. (SAVE).  This discount airliner has a solid balance sheet (no long term debt), its revenue growth was 16%, EPS growth was 39%, PE is 23, ROE is 26% and expected EPS growth is 25%.   I calculate the intrinsic value at 119, so I rate this stock a strong buy at about 57 (I bought the stock personally last week at 55).  So I am adding this stock to the fundamental fund as well.
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