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Market. The current fair value for the S&P 500 is north of $3045, which is 19% higher than it is right now. The US market is substantially undervalued. He does his calculation every year by taking the estimated earnings, adding them to the balance sheet and grow it out a year. Next year is $3500. It’s no wonder the market is making new highs because, Fair Value is substantially higher than where the market is trading. Fair Value is his own algorithm. Since the financial crisis of 2007/2008, the market fell a lot more than people thought, in terms of fundamentals. It’s been 10 years and we are finally emerging out of financial repression. Interest rates are now starting to go up, which is a positive for equities.

He sees a ceiling of $100. It is currently at $70.26. His model price is $132.82, a 70% potential upside, but this is a cyclical. The stock dropped so much because everyone thought we were at peak auto, but this company’s worked through that and has gone higher. He sees better potential elsewhere.

He likes this company. Anything in the S&P 500, or even the S&P 100, is perfect for him. This closed at $147.29. Has a model price of $140, and the stock is just a little ahead of itself. Would be a buyer on any pullback.

This is at what he considers resistance. If he had a “break even”, he would be a seller. His model price is $44. In the last 8 years, EBV 3 has been a significant resistance for this stock. There is more value elsewhere.

Closed at $42.91, and he has a model price of $53.25, a 24% premium over the current price. If it got $39.51, it would be interesting. Remember that in the 1^st part of 2016, the stock was basically down to about $27. It’s had a good recovery. Feels that a lot of interest sensitive stocks are meeting a lot of competition as interest rates move higher.

This one is tough. (Sold his position.) He can’t say it is a strong Buy or that it is a strong Sell. His model price of $69.73 is 140% above the current price, but what is happening is that the model price is decreasing over time because earnings estimates have been grinding lower. If it went to $34.50, he would hit the Sell button. If it got down to $20, he would be a buyer.

Has a model price of $4.55, a 68% downside. Earnings are coming back slowly. Believes there was another key executive that left. There is no fundamental reason to buy this. Prefers others.

Closed at $210, and he has a model price of $238. When it pulled back to $189, that was a good price. He would love this to come back to $149. This is not too expensive. When it does rally, it will probably rally up to $238 or $237. For fresh capital, there is more and better ideas out there.

Closed at $259. He doesn’t have a model price, because it doesn’t have any equity. It’s BV is only about $5, if that. Here it is at about $260. The world is going to spend money on armaments and all the stocks, from 2008 to now, are up 400%-500%. You are not buying anything financially when buying this company.

(A Top Pick Aug 29/16. Down 23%.) They are going to report earnings this week, and if it went through his EBV+3 at $20.66 he would be buying more. They did the hard work of removing a totally inept CEO. The stock has gone nowhere in 17 years. Hopes this is a big turnaround. Flannery is the new CEO and gets to have the third-quarter report, and we’ll see what happens.

(A Top Pick Aug 29/16. Up 19%.) Thinks this will continue to do well.

(A Top Pick Aug 29/16. Down 2%.) This certainly didn’t lose any money in a very harsh environment for oil. It might do well in a reduced carbon world, and look for this one to hopefully lead the way.

Sell some of the S&P 100 (OEF-N) or the Russell 1000 (IWB-N)? He would stick with this one. The Russell 1000 is a small company. When you have this much in terms of differential between Fair Value, he thinks the biggest companies will benefit.

Sell some of the S&P 100 (OEF-N) or the Russell 1000 (IWB-N)? He would stick with the S&P 100. This one is a small company. When you have this much in terms of differential between Fair Value, he thinks the biggest companies will benefit.

He doesn’t care much for this. It closed at $14.17 and his model price is $15.08, a 6% upside. Pays a very puny dividend. He would prefer others such as Imperial Oil (IOL-T) or Suncor (SU-T).