This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Two Names Worth a Nibble

One of the nice things about the value investing approach is that it leaves you sufficient time for both adequate research and outside activities. This weekend, in addition to reading various newspapers and running screens, I still had time to watch the hoops tournaments, make a killer corned beef dinner and do some recreational reading. The results of one of my screen searches may be of particular interest and use to investors and traders alike.

In his book, The Intelligent Investor, Ben Graham spilt investors into two camps: the enterprising investor and the defensive investor. While the vast majority of my activities fall into the enterprising investor classification, looking for stocks suited to the defensive investor is still worthwhile. I often find bargains I have overlooked and the results contain information about the condition of the stocks market itself.

Graham believed that defensive investors should look for stocks of decent size with long histories of profitability and dividends. As always, he wanted to pay a decent price for them, so he suggested not paying more than 15x earnings or 1.5x book value. He wanted a strong financial structure with a high current ratio.

This article originally appeared on March 18, 2013, on RealMoney. To read more content like this + see inside Jim Cramer's $3 Million portfolio for FREE Click Here NOW.

When I ran the defensive investors' screen, only four companies made the grade. While I do not make or use market calls as an investor, this does seem to suggest a sense of caution when approaching the markets right now. Graham was also an advocate of buying stocks when they were on sale, so it may be prudent to delay commitments even to defensive stocks in light of the recent run-up in the broader stock market.

Two of the stocks on the list are food and grocery related. The first, Nash Finch (NAFC), is the second largest publicly traded food distributor in the U.S. The company sells its product lines to retail grocery stores, as well as military commissary and exchanges in 36 states as well as Washington, D.C. and Puerto Rico. The company also has operations in parts of Europe and as well as in Cuba, the Azores and Egypt to serve U.S. military bases. They also own 75 retail grocery store, primarily in the upper portion of the Midwestern United States.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs