DexCom Inc. Downside Targets

Below are the downside targets for DexCom Inc. (DXCM).

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  • $189.20 (conservative target)
  • $135.2 (mid-range target)
  • $81.23 (extreme target)

DexCom Inc. has had a healthy increase of the last 2 years and requires a reset.  When will that reset occur? We don’t know, however, we suspect that the conservative downside target is the best level to watch for.

Paycom Software Downside Targets

Below are the downside targets for Paycom Software Inc. (PAYC).

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  • $224.12 (conservative target)
  • $168.35 (mid-range target)
  • $112.58 (extreme target)

If extended to the IPO date in 2014, we would have generated much lower downside targets.  In an effort to be reasonable about expectations, the targets have been set from 2018.  The forecast is that PAYC will decline to the ascending level of $224.12.

Tesla Downside Targets

Below are the downside targets for Tesla Inc. (TSLA).

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  • $507.09 (conservative target)
  • $401.39 (mid-range target)
  • $295.69 (extreme target)

Parabolic increases rarely go unchecked.  This typically means that a decline to the conservative downside target is the norm, at minimum.  However, Tesla has had a history of defying the “norm” when it comes to price change.

Nifty Fifty: 1953

Below is the performance of the Nifty Fifty as published on September 28, 1953 by Barron’s covering data from June 29, 1953 to June 28, 1954:

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In the period from June 29, 1953 to June 28, 1954, the Dow Jones Industrial Average increased +25.32% compared to the overall change of +17.37% in the Nifty Fifty.  The breakdown of the data based on dividend yield, price-to-earnings ratios, and dividend payout ratio.

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The best gain was achieved by the top three stocks in the High Payout category with an increase of +22.99%.  On average, best performing group was the High P/E, however, no grouping managed to beat the performance of the Dow Jones Industrial Average.

Note:

  • Rank is determined by 58 closed-end funds and over 100 open-end investment companies and their holdings.  Rank number 1 means the stock is held by the most investment companies on a dollar value basis.
  • Johnston, Paul A. “With the Investor’s Investor: Tobacco Stocks Join List of ‘Favorite Fifty’ Group.” Barron's. September 28, 1953. page 31.
  • Aigeltinger & Co.
  • Sydney G. Vickers.

See also:

Nifty Fifty: 1951

Below is the performance of the Nifty Fifty as published on September 10, 1951 by Barron’s covering data from July 2, 1951 to July 9, 1952:

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In the period from July 2, 1951 to July 9, 1951, the Dow Jones Industrial Average increased +12.66% compared to the overall change of +11.15% in the Nifty Fifty.  The breakdown of the data based on dividend yield, price-to-earnings ratios, and dividend payout ratio.

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The best gain was achieved by the top three stocks in the High P/E category with an increase of +36.00%.  The best performing group was the High P/E stocks where all of categories generated gains that beat the Dow Jones Industrial Average.

Note:

  • Rank is determined by 58 closed-end funds and over 100 open-end investment companies and their holdings.  Rank number 1 means the stock is held by the most investment companies on a dollar value basis.
  • Johnston, Paul A. “With the Investor: Oil Holdings Maintain Lead in ‘Favorite Fifty’.” Barron's. September 10, 1951. page 35.
  • Aigeltinger & Co.
  • Sydney G. Vickers.

see also:

U.S. Dividend Watch List: January 31, 2020

Prior Year Watch List Review (February 1, 2019)

The best strategy was to buying the top five companies with a high P/E ratio which gained +28.40%. The strong performance was driven by Brown-Forman (BF-B) and Aqua America (WTR) gaining +42.00% and +50.00%, respectively. Compare that to S&P 500 which gained +19.20% and Dow Jones Industrial Average gained of +12.70%. Purchasing top five stocks nearest to the low or low P/E stocks would net you negative returns in the last year.

February 1, 2019
Strategy High Low
Yield1 6.2% 12.9%
P/E1 28.4% -1.8%
Payout Ratio1 11.1% 18.7%
P/B1 13.5% 4.5%
Closest to Low1   -1.7%
S&P 500   19.2%
Dow Jones Ind   12.7%
1 - Top 5 companies

U.S. Dividend Watch List January 31, 2020

It was a tough week for the market with all indexes retracting. One could attribute that to the Coronavirus outbreak that originated in China or perhaps the market is over-extended. We're less concern about the reason and simply looking forward to the opportunities to accumulate shares at a discount. Below is the watch list for this week. Continue reading

NLO in Review: 2020-5

The following is the breakdown of the Dogs of the NLO based on our January 3, 2020 watch list, compared to other fundamental ratios.  The purpose of this work is to confirm or deny the claims proposed of the Dogs of the Dow theory as outlined by Michael O’Higgins in his book Beating the Dow. Continue reading

TSX in Review: 2020-5

The following is the breakdown of the Dogs of the TSX (here) in week five, compared to other fundamental ratios. Continue reading

DJIA in Review: 2020-5

The following is the breakdown of the Dogs of the Dow (found here) in week five, compared to other fundamental ratios. Continue reading

Nifty Fifty: 1977

Below is the performance of the Nifty Fifty as published by Forbes from the December 15, 1977 publish date to December 15, 1978:

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In the period from December 15, 1977 to December 15, 1978, the Dow Jones Industrial Average decline –1.54% compared to the overall change of +2.46% in the Nifty Fifty.  The breakdown of the data based on dividend yield & price-to-earnings ratios.

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The best gain was achieved by the top three stocks in the High Yield category with an increase of +12.56%.  However, the best performing group was the Low Yield stocks where all of categories generated positive returns.

See also:

Luckin Coffee Downside Targets

Below are the downside targets for Luckin Coffee (LK).

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  • $34.88 (conservative target)
  • $25.78 (mid-range target)
  • $16.67 (extreme target)

The strong rise in the price from November 2019 to January 2020 is being matched by the current decline.  We expect that the decline to the $25.78 level should be accomplished as a natural reaction to the prior dramatic increase.

UPS 10-Year Targets

Below are the valuation targets for United Parcel Service (UPS) for the next 10 years. Continue reading

Nordstrom 10-Year Targets

Below are the valuation targets for Nordstrom Inc. (JWN) over the next 10 years. Continue reading

Westlake Chemical 10-Year Targets

Below are the valuation targets for Westlake Chemical (WLK) over the next 10 years. Continue reading

Polaris Industries 10-Year Targets

Below are the valuation targets for Polaris Industries (PII) over the next 10 years. Continue reading