In honour of World Teacher’s Day, Zacks.com published an article on NASDAQ’s website that highlighted the teachings of Benjamin Graham, the man considered to be the “father” of value investing.
The four stocks were in companies located in Europe, the USA and China – all of which were undervalued according to the famous ‘Graham Number’ pioneered by Benjamin Graham.
I’ve decided to look into the four stocks and list them, in order to give insight into their value
Atlas Air Worldwide Holdings, Inc. – USA
An operator of Boeing freighter aircraft, Atlas Air Worldwide Holdings (AAWH) holds market capitalisation of $901.41 million as of October 2nd 2015.
The Graham Number determines that AAWH has a current discount of 54.7%
JA Solar Holdings Co., Ltd. – PRC
A fast-growing manufacturer and seller of solar power products, JA Solar Holdings Co., Ltd. (JASO) has a discount of 56.1% according to the Graham Number. This discount is very high, second only to Transocean Ltd.
The Shanghai-based company has a market capitalisation of $422.96 million. JA Solar Holdings Co., Ltd’s discount places it in the Zacks Rank of #1 (strong buy).
The Travelers Companies, Inc. – USA
A New York-based provider of insurance products several different areas including property, The Travelers Companies, Inc. (TRV) has a discount of 27.1% according to the Graham Number.
Transocean, Ltd. – Switzerland
Based in Vernier, Switzerland, Transocean Ltd. (RIG) provide offshore contract drilling services for global oil and gas wells. The organisation offers a discount of 76.9% according to the Graham Number. This is the highest discount of the four.
Summary
The four organisations are just a small sample of the many companies offering a discount when the Graham Number is considered.
Using the Graham Number is an important factor for any individual involved in value investing, so it’s wise to remember it every time a decision is made.
Nery Alaev
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.