Roaming Returns

019 - How To Find Undervalued Stocks To Level Up Your Investment Profits

November 14, 2023 Tim & Carmela
Roaming Returns
019 - How To Find Undervalued Stocks To Level Up Your Investment Profits
Show Notes Transcript Chapter Markers

 You should never pay more for a stock than its worth. Especially when there are ways to determine if a stock is overpriced.

Buying overpriced assets leads to losses, which is exactly why you need to learn how to value a company to become a successful investor.

We use several metrics like the P/E Ratio, P/B Ratio and PEG Ratio to provide insight on a stock's true value.

Types of assets that have a NAV Price or Par Value make it easy, but with other companies, you need another way to compare apples to apples. And that exactly why we compare a stock' P/E Ratio to that of its peers.

FullRatio is a great site to find these averages. 

Tim's scanner research revealed these high dividend and undervalued stocks mentioned during the episode.

  • BTI - 9.1% yield with a 6.9 P/E (tobacco industry average is 15.12 P/E)
  • NAT - 11.1% yield with a 8.0 P/E (marine shipping industry average is 18.65 P/E)
  • T - 7% yield with a 6.5 P/E (telecom industry average is 15.43 P/E)
  • MO - 9.2% yield with a 8.5 P/E (tobacco industry average is 15.12 P/E)
  • NSA - 7.2% yield with a 28.02 P/E (REIT specialty industry average is 45.94 P/E)
  • UAN - 34.22% yield with a 3.19 P/E (farm products industry average is 16.43 P/E)
  • AFCG - 17.65% yield with a 6.71 P/E (REIT specialty industry average is 45.94 P/E)
  • NEP - 14.70% yield with a 17.75 P/E (Solar industry average is 17.9 P/E)
  • TRIN - 13.56% yield with a 9.76 P/E (Asset Management industry average is 12.67 P/E)
  • ABR - 13.17% yield with a 8.61 P/E (REIT residential industry average is 32.03 P/E)
  • ARLP - 12.74% yield with a 3.93 P/E (Coal industry average is 5.28 P/E)
  • PDI - favorite bond fund (currently 30% undervalued)

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Welcome to Roaming Returns, a podcast about generating a passive income through investing so that you don't have to wait till retirement to live your passions.

In today's episode, we're going to talk about how to determine the value of an actual stock. Because let's face it, nobody wants to overpay for something when they can get it on sale to strap in, because this might be the most important episode we've done thus far.
What's up, y'all? So this week, I'm going to be talking about something that we touched on previously, I don't recall exactly what podcast it was in but we think
we scattered here and there for the first couple episodes, kind of glazed
over it. Because I assumed everyone knew what it was but I got a question from someone who read the email or listened to the podcast or whatever I don't really
know founder stalked him on one of the weird messaging apps
Yeah, anyway, the question was, what is value investing? For many seem pretty interested so I thought I can't I thought everybody knew what it was. I was like,
really? It's like the Zekey all over again. Yeah.
But so simplest, the most simplistic definition I can come up with is finding a company that's unfastened, undervalued
buying something below value,
or trading for less than they're worth and invest in these companies for the long term value investing like that. That last part, they're super important long term. It's not going to be a quick turnaround generally, like every now and then maybe one out of 100 You'll get it because it crashed but it's a good stock and we'll go back and so it's not like
that approach. That's momentum investing. It's
not like going out and saying, oh, Amazon had a dip so I'm buying the dip. That's not value investing. That's buying the dip value investing is when it's been repeated like it's been over a long duration of time and depressed in value. And if you don't think a company, you if you need to look any further as to why it's important, like the number one investor in America that everyone talks about, we talk about I don't like him, but whenever Warren Buffett, that's what he does. He will research a company, he'll find a company that he likes, he knows what the company does, and he sees that it shouldn't be trading for way more than it's currently
valued at and he will pick it up in spades in
the billions and billions of spades. So but like I actually when I saw I gave the the answer Oh, it's Dude, your views find a company is undervalued and you buy and I thought, you know, simple, but then my brain working the way it does. I was like, Oh, they probably want to know how to find these companies. That's what they were asking.
Well, that's the thing. I don't think people really know how to like word their questions. I think it was more along the lines of they understand they want to buy stuff undervalued, but I think it was more of how the heck to find an undervalued stock comes
into like we discussed the metrics before the peg, the price earnings growth, the P E price to earnings, the book value the discount to nab things of that nature. So like you can if you want to simplify value investing, the easiest way to do it would be to buy closed ended funds because it tells you right on on the page, Hey this is 80% undervalued.
But then you start the due diligence to make sure it's a good company and it's not.
You have to make look at the financials to determine if it's under undervalued for a reason because at that point, it's no longer under undervalued it's actually probably more along the lines of it valued correctly. It's just a company that's going through. Yeah, well, if it's
if it's one on ones that is a bad company, those are the ones that will eventually go to zero. So it's not wise to get into those. So you can't look at just one metric. I think that's the key for that whole thing. There's definitely a lot of things you have to go through like Tim was just saying with the P E ratio and the peg and everything. I think we did talk about this somewhere but I kind of feel like it was a deeper subscription email or
clue the P E ratio that is how much you would have to invest to make $1 in profit.
And I think this is one that most people know about and talk about is P E ratio. They might not know what it stands for.
Remember we discussed it because I think at the time, Apple or Amazon or something was like 2000 Yeah, we
did talk about that. We did talk about that. I think it was Amazon and that was when we just realized they did a stock
split. Yeah, so that's not that that's obviously overvalued,
most of the blue chip ones like Amazon, Tesla and all that I
think that they're called a overvalue all they're called The Magnificent Seven now because this year they really
were gone with magnets and says what they're calling the frickin movie. Oh my
god. This year, the s&p is up like 8% but if you take out the Magnificent Seven, which is Microsoft and Apple, blah, blah. Tatiana got The Magnificent Seven, the actual s&p is below it's like negative two. So it's actually those seven are actually carrying the mark at the entire s&p basically
that the market is actually down low. No, yeah, they're
gonna come December. 31st. Oh, it was a good year for the stock market and everything was up like 10%. But if you'd like I said, if you take out those seven stocks, the market went sideways at the best. Yeah. So that's what the P E ratio is how much you have to invest to make $1 profit. The price to book ratio uh, so let's go back to P
E ratio per second. What would you consider something with a too high P E ratio?
We'll get to that a little bit.
I mean, as a general, we're not having fun 25 So to anything above 25 is a regular company, and you'll know what's not a regular company?
And like I said, we're gonna get into later like how you can determine like, because it could be 25 will be an REI T and that's below. That's undervalued. Yeah. But if it's 25 in the energy sector, then or the utility sector, it's crazy overvalued, like eight times overvalued and then later, yeah, I kind of feel like it should go now. No, because other things.
Okay, Tim wants to do that later. Basically, general stocks 25 Is the outlier. Too
high? Because the current market itself has it like 28. So I think anything above 25 would be overvalued.
But apparently there's nuances we'll get into later. Okay, excellent. The price
to book ratio. There's a couple brokerages, I believe fidelity and I believe if I remember correctly, TD Ameritrade has the price to book that ratio on their on the tickers. That is when company's book value is less, obviously it's less than its price. But like the ratio, kind of like a nav, kind of you're kind of like it'd be like a regular stock company's nav.
Okay, so that makes a lot of sense to me. So it
says Like if a company is trading at $50 a share and it's book valued at 780 then it has a point seven one PDB which means anything under one is a good a good, good time to
buy. Like we should call it the peanut butter ratio, BB
peanut butter peanut butter ratio. Now I know we brought up peg that actually looks at the price that uses the PE but then it also brings in growth for the EPS in the future. I believe Yahoo Finance has the PEG ratio on there and I know that Schwab has the PEG ratio on their Schwab's their favorite.
for lots of reasons we probably should do an episode that talks about which brokerage account to go with I feel like we've had an account open and every one of them. So
we have an example of the price the P E ratio is five, and its growth is projected to be 20%. The PEG ratio would then be point two five which would be the five divided by the 20. And anything under a one peg is undervalued but you want us to be closer to zero then more closer to zero then more closer to why.
So if you look at those three things in combination, and if it has a nav, which I guess would be in place at the peak peanut butter ratio
and then the Ponzi like most funds, and that you can actually extrapolate that to bonds and CDs. You know, they're called the par Correct? Yeah, they're the par values, but you know exactly what they should call it like what the what the NAV is, it's the net asset value and like, I know for open open ended funds and index funds, at the end of every trading day, they have to tabulate all their take all their shares, they put them in a pot and they determine how much all the shares before so that was reported every day after the close of market at four o'clock. And so if it's like 80% under nav, that's a steal. If it's a good company, then again, you'd have to obviously doo doo, doo doo doo, doo, tell it tell it to Triple D Do do do do due diligence. Make sure the financials are good like when I say look at the financial I'm referring to is you want to make sure the revenue is not decreasing. You want to make sure that's not going up and no that's not like blowing up like I mean then also you then you have to take into account what industry then like REI, t's and MLP you should have a logical plan. Utilities and oil and energy companies
come in and have a debt plan for taking out a mortgage I have a lot of debt because
of its infrastructure and buying properties and whatnot. And you know what I now the way that I find these numbers that I find to be most helpful is I actually go into Schwab and you can go into a equity screener or a fund screener or whatever you want and they actually have all these things. You literally can click on the P E ratio and it gives you like five options, a P E ratio of like, less than 1010 to 12 1218. What I forgot, I
don't know, the bee's knees. It's like a filter system. It's fantastic. So
I basically will screen for equities that have a price to earnings under 25. And then I couple it with like a few other things like a dividend yield of like 10% or higher a debt that's under like, I think it's 50% you don't want them like is there
a market cap thing you do or do you do that?
I just look at more like because once you come up with like once you pick whatever criteria you want for the screener, it's going to bring you up the list. I just did the cursory ones. Yesterday when I was typing up the email for the week, and it brought up 379 And then you literally have to be have 379 options to go through and
look at Holy crap how many are on the market
80 to 80 or something
like that. Like 1000 Nice at 200 stocks down to 300 That's more manageable number
then you can kind of have an eye like but then you can go through like it's easier to go through that list because you like well for me is because I kind of know by tickers what they are.
But he still does research once he's not really familiar with. He finds new stocks all the time. Like what was that one and EP NEP is the new one that you hadn't really looked at before. And that one's like a zinger.
No one's good because it's grown its dividend for X amount of years. I think it's 18 or 19. Zinger. It's a utility stock. I mean, it's in it's in a crappy sector. No, it's a utility stock but it's not like the good ones. It's not like electric or water. It's like solar and wind. That's wrong with solar and wind. I was just reading a report today. I'm glad you ask, Oh, do I got I got a pamphlet. I got a packet in the mail.
So some of the subscriptions that he has. He actually gets physical crap in the mail and he was like reading the newspaper of one of these things in the car earlier. And I happen to see since we were just talking about Warren Buffett that Warren Buffett just dumped how many billions of dollars into oil
that's what oh, that's what I was about was basically says they're trying to sell you about a small oil company which which is fine. I mean, I'm always looking for exploitive oil companies. But they said they said that their the estimate for green energy is like 700 trillion so they took every dollar from the taxpayers it would take 50 years to fund all the green energy. Yeah,
I truly believe I've been reading some actual scientific stuff on this whole thing. We don't have the technology narrowed in enough to make it cost effective. So the dependency on oil seems to be the hybridization of staying dependent on oil long enough to get our shit together. With the green industry. It's a really interesting so it could take decades,
like but
it's gonna take a lot longer than everybody projects. But
NDP is it is an alternative energy utility but what they do is like they're part of N ie the parent company, which has like their hands and everything. And they didn't want to be part of the the solar and wind so they literally just created like an LLC said you're in charge. You're in charge of that. Now we don't want to deal with that. Well, that's actually really funny. So the company's never gonna go under because any E is like a almost a trillion dollar company. Is
it kind of like a birthchart Berkshire Hathaway? Or is it actually in its own sector? It just didn't want the wind and solar thing.
It literally is it's in the energy field, like it's an energy company. So it's an energy company that just kicked out the solar wind and they created a new business for the solar, redheaded stepchild go over there and play in the Senegal. It's really funny. But I do I don't do we ever discuss graders in here? Remember we did. We hinted I always use a screener for every every time I'm coming up with ideas I always use a screener to like first of all because I don't want to like I said 1000 stocks. So I want I want stocks that pay more than 10%. And because stuff is always fluctuating. Ideally I'd like to find them undervalued. Yeah. So I will use the P E ratio, and I also would like them to have a dividend growth. So I like actually check on that
so that they increase their dividend year to year.
I'm not talking about dividend aristocrats or kings or champions. Like
if you think about inflation is inflating prices. So like the easiest way to combat that whole thing is actually getting to companies that grow their dividends kind of report about
that I was already i t's and BDCs and MLPs they kind of are all over the place.
Shocker. Like they are the weird sectors,
like a little bit like 111 month or one quarter they'll pay like 70 cents and the next quarter they'll pay like $1.70 and then the quarter after that they'll pay like 10 so you kind of like what I what I do is I just add up 12 months worth of dividends and divided by divide by 12. They come up with like an average monthly average. That makes sense. I mean it's not like it's not ideal ideal for income investing because I'm assuming with your income investing you want a consistent payout. That you can bank on? Well,
we kind of talked about the whole ink consistent payout thing, and that's why Tim tries to do the more monthly stocks versus quarterly or biannually ones, but to be honest, I would love to have a situation where you could pull out a lump sum the year before you need it. And stick it in something like worthy and then top battle your so that your payouts don't really matter.
True you can do that and you have to have like the foresight for budgeting would definitely and
then like the robe things would probably cause a problem but maybe not. When
you remade like you could like you can get a pretty good idea of what a company's doing this by doing that like if you do like three years worth of backtracking to keep divided by 12 you can see like what they do. History is definitely important. So even a variable or even a variable dividend you can come up with an idea I found a really cool website called a fool where like you literally just type in I want like industry averages for pas and we're gonna get like what she was mentioning before. He want this to be like apples to apples but like it's impossible to be apples to apples. It's gonna be apples to oranges apples to bananas apples to cows. It's gonna be all sorts of tragic cows.
Think cows is a fruit there bro.
Apples completely different.
Like which one's the cow and LPs. Like
say you have your liver you do your screener and you come up with a list of like 100 stocks, they're gonna be from all sorts of industries. So you can't then you can't use that PE under 25. That's what I was just mentioning like, there are a whole plethora of like software application as a PE of 4042 software infrastructure as a PE of 35
when they say there's like so many different sectors or industries but there's even more like sub sectors and we were even talking earlier today in the car
keys are all above 25 Except for mortgage rates. We
were just talking about how sometimes it's hard to actually tell what accompany Sen is
medical and services supply sucks if you could think you pull up the like there's a lot of industries that are like well above the 25 pe so that at that point, it's not apples to apples and it's to make it apples to apples. You have to find what industry they're in and then compare the Pe to the the average of their peers.
So I feel like just saying that 25 It's probably just not I know for a fact
and Schwab that whenever you whenever you bring up a ticker it tells you in the ticker, what industry it's from, I know for a fact and Yahoo Finance that does as well. You can type in any ticker on there. It'll tell you what industry it's in. That's cool.
That's definitely helpful. The less places you have to go for your photo.
So I will use this full ratio that gives you like the industry averages. And then you can turn it on if you say you determine the stock has a PE of 16 but it's at like all of its peers have a PE of seven well then it's overvalued even if it's under that 25 Like utilities. I'm like utilities blew my mind because I thought they had a lot of debt and stuff. Like 15 coals at five. That's an average PE Yeah. Constructions at seven real estate real estate developments at six so like there's a lot of peas that are super ridiculously low. Wow. Call one blooming and like banking stocks are all like they're at like seven and eight. So if
the following seems out of out of norm to
not really they make a lot of money. But a seven p
I don't know. Hmm. Interesting. So
that's that was that. That's awesome. So you've once you have the list of all the different industries and you when you find something in your screener that he's like, Oh, it meets the criteria. It has a good revenue, growing revenue. It has a great payout, but then you look to see that it has a PE that's like 10% over the industry average, will you then you put that on your watch list and you wait for it to pull back. You don't forget about it because it's a good company. It's just overpriced.
So what we were talking about was how we're income investors first so we look at the payout, but I kind of feel like they're equal ish, metric or weight of consideration because you're not going to get in something that
makes no sense. If it's like if it has a 10% yield 10% over value, you're losing your mind. Yeah,
you're not going to get into something even if it is that much of a payout unless it's undervalued. Like we want that extra icing on the cake to pay for any funds manager fees or time of potential pull backs. And this has the
same has the same philosophy that the closed ended funds do with NAV like you don't know if it's 15% over like a premium. You're not going to invest in the company that's 15% have a premium unless you look at the historical data and it's always been 50% over and then you know this par value that's
the thing even with stocks in general most people will get in when things are severely overvalued and then they have a correction the other direction and then their cap goes like retarded that's what happened with us in crypto. We got in like during the excited peak of whatever and our count dropped like 40 50% And we were like Well Guess we're holding for a crap.
There is like there is one area that's very difficult to peg and that is the REI T's really do their be because they like it depending on the sector, depending on the industry of the sector of REITs it's anywhere between a 16 and a 46. That's a heck of it. So you have to determine what they like so then you literally have to go into the company profiles.
You know, that was when you pick a color like UPS like we're delivering somewhere between 7am and 5pm. And you're like well that narrows it down. I have to sit here all friggin day waiting
for a signature you have to at that point, company, company profile. The company profile will tell you like exactly what they do. You can then determine if they're like single family, residential, mortgage based etc. So you have to do a little bit of legwork, but I'm telling you this is and
it sounds way more cumbersome than it really is once you get a system down and you get your feet wet. This
is so important because it makes no sense. Like we were just saying to buy a company that has a 12% yield if you're gonna give back 12% Because it's overvalued by 12% but if you can then but if you can find that 12% Or that's a good company with growing revenues that's 8% undervalued within you're gaining 8% While you're collecting 12%. So like there's a huge like, you're the like, you're actually a lot of money's on the table.
You're actually gaining more than that because if it's getting if it's paying monthly and it's still kind of undervalued on its way up, you're re accumulating shares at lower undervalued prices, so you're actually gaining more than the 8% and the 10% dividend or whatever you just said. So
like I always I always start with the yield, I want something that yields over 10% And then I go into the P E ratio then so well I am an income investor first value investor second,
but I do kind of feel like they have equal weight. Sometimes so
it's like 5% of revalue, but it pays out 14% I'll fix a little bit. If it's on if it's if it's if it's on a dip I'll buy even if it's overvalued. It's kind of riots. What do you want? So that was that was the question. So then the hopefully that answered the question. I have no idea. It seems complex. It's not really complex. It's just a matter of a lot of tedious legwork. Yeah,
so value investing is getting something on sale.
Boy like if you think about when you go to the grocery store, like to see like say the box of cereal that you eat all the time is on sale for $1 you're like I'm gonna buy two I'm gonna buy two was the same concept,
the same concept. And because you go grocery shopping every week and you buy similar things, you kind of know when something's on sale. So if you start doing this research and you start getting familiar with the tickers, and you'll know, especially if something hits the news or you see a 52 week low and you're like oh, I've been looking at that stock or you have it on your your watch list. It makes it a no brainer, especially if you've done your due diligence in advance or even just like had an idea if it was the watchlist worthy basically. So
we're going to real world real time with current data from Yahoo Finance, or Schwab or whatever, whatever we're going to go through so you can see exactly why why this matters. I want you to I can't like I can't stress it enough but okay. Pen and paper, but tickers coming out. BTi it's a British tobacco company. It has a 9.1% yield. So that's decent ish to start with. And it has a 6.9 pe currently, what's the sector? The tobacco industry average is 15 point 12. So right now 15 Seven to 15. So it's like 50%, undervalued so like that you're 50% undervalued compared to the industry's average it doesn't necessarily mean it's going to go up 15% But you know, it's going to go up because like they tend to migrate towards the bell curve and then whenever that
so if you want to kind of bathtub curve, but the bell curve is where you have the outliers on one side on the left the outliers on the other side, but generally most things are in that average of the middle. So if something is that far down from the average, statistically it's going to price appreciate to kind of get closer to the centerline.
So the probability is very high that that one's going to go up in price. You don't know if it's gonna go up the full 50% I would probably start selling my profits after like, 30% that's just how I roll. Other people like let it ride. I don't know, but you're collecting 9% yield while you're waiting for it to appreciate 50% on that one. That's tobacco. Some people don't like tobacco so we'll move on. And 80 It's a Nordic Atlantic's tanker or something like that. So it has an 11.1% current yield with an eight PE the marine shipping industry average is 18.65 pe, so that one is like 60 I don't know the exact numbers but that one's like 60% undervalued. So you're getting 11% yield and the price appreciation of probably 40% Before I would sell tea everyone loves tea. I hate it. I like vz better but
you're not familiar with those AT and T vs Verizon ATT
has a 7% yield. It was a dividend. I want to say King champion. I think it was 10 to 25 years but it had to cut its dividend two years ago. So that you know what I understand it just had a dividend cut in one year out of like 25 years and I'm okay with I'm pretty sure they're gonna raise their dividend 7% yield currently with a 6.5 pe, the Telecom in this industry average is 15.43 so that one is damn near 75% undervalue with a 7% yield and you know, it's going to raise this dividend because it's a TNT does that dividend
cut the reason you went for Verizon pose to t 18. T when you were looking to get into them?
No. Okay. I literally like he had one of his I don't want to hear this. I literally just said Verizon.
He had one of his uh, what do you what do you call it? It's DevArt moments.
I just looked like Verizon better. I think it has more coverage and where he rolled
in it and then he's like Don data later to backup the fact that he actually made the right decision intuitively, like,
we got her mom I am. I dumped some fun that had been her. I think she was up like two or 3% but it was kind of going sideways. I dumped some fun and I just said I'm gonna buy Verizon because it's a retirement fund. So I need something that's stable ish.
That's a good company.
That's a good company, but Verizon has raised their dividend for like 20 years and they have a higher you have like a percent and she's up like 27% It already it's insanity. But okay, so we'll go back to Verizon. At the time I got it. It was 8.1% yield. Its P E was a little bit higher than ATT is I think it was 8.3. But it still was 50% undervalued for the industry average.
And I think that one was the higher price to write normally, we buy the one that's the lower price. And that one was doubled just because of the share and I was just like, Okay, so where was your logic? And he's like, I have no idea. I'm like, well, that's fantastic. I
had no logic. So another real world example.
Apparently his instincts were on point. Oh, it's
another tobacco one. It's
10 likes his tobacco. I
don't know. I don't forget what mo stands for 9.2% You know, it's not normal. Monsanto. Just get a point 8.5 pe again 1512 was the industry average so about a 50% undervalue and that say like, if you're into like to believe this is a dividend guy thinking or whatever's under King I don't want that to say it's national storage Association. It's a rental, you rent a storage locker and storage locker.
Everybody has those 90% 90 Because 97% of the population
versus one of those tough ones that like it's very difficult to pinpoint where it's at, and I actually had to look it up in a Schwab and it told me and I say 7.2% yield, it has a very high the goal. Okay, I said 25. This one is a 2802 pe, which is over the 25. But if you look at the real estate, trusts that are a REIT specialty industry average of 46 so it's 40%, undervalued and it's a really good company. Here's one that we're in currently. U A n. Remember that ticker, folks? You'll hear why in a second. UAE has a 34% yield. That's it's a variable one like it's just happened that they paid a hefty dividend that it's normally about 18% 19%
That's still nothing to sneeze at
with a 3.19 pe. farm products industry average is 16.43. So this thing is like 80% undervalued according to its peers, what they do is they make fertilizer for farm stuff. That's super cray cray. It's high priced, I think it's like $70 but it really should be about 150. So that one like that one's very, very, very undervalued we in that, yeah, we've been in that for a while. We've made a lot of money on ASC G, which is a cannabis REIT.

So if you like the wacky tabacky and this one is another one that if you really if you're doing if you're value investing with the dividend approach, this is another huge one. ASC G has a 17.6% yield with a PE of 6.7. Again, read specialty is 46 So this one is crazy undervalued as well, just like us. Yeah, that's insane. But then you have to look at the underlying like, I would, I would if I had to pick between you and I fcgi take you and finalize everything Eazy E, there's some there's some financial problems with ASC G's, but it's going to appreciate prices. I don't think it's going to do the whole whatever that is. 85% I'll probably be about 20% 20 to 30. And then there's na p right there. So now this is one of the ones that I brought up though, like I would pull the trigger on it, which I did. But we got it for Windows P was 15. But there's any P 14.7% yield and that yielded like that. They grow their dividend every year. It's been 18 years. Their parent company it's like a trillion dollar company or not trillion this with hundreds of billions it's really large company has a 17.75 pe where the solar average is 17.9. So I would look at that when I say it's about value correctly and what it's currently running for. So you have two options. You can wait for a pullback because there's always a pullback, in fact, it was down by like 2% today, so today might be a good event by tomorrow 2% But because it has such a good dividend with the dividend growth I'm okay get that at the about the value I don't that's me
about the normal average P Yeah, that makes sense to me because that is a pretty good yield.
Here's another one that we're in that's awesome that we just made like I Yeah, Tim has a hard time I try not keep selling. I keep taking profits like every month and that keeps giving me more money. I don't know what to do with it. That's right. p r i n has a 14% yield. That yield does not include they have a special dividend. I was
just gonna say I know this came up in special dividends on the last email we sent out it has
a special dividend at least twice a year and it's a good dividend 9.76 P E asset management industry because I thought it was a BDC banking. It's not as actually Asset Management. I don't know 12.67 So it's about 33%, undervalued and you're getting dividends and special dividends. It's It's It's freaking awesome my favorite read is ABR and it's currently 75% undervalued 13.17 yield with an 8.61 pe. Residential industry is 32. So like I said it's about 75% undervalued so I know that one is going to be in the $20 range some point that you're going to make.
And I don't think that's gonna go up till people are like, Oh, hey, this one's undervalued. And I never know
what the real ones that you'll see there's 100 REITs are there 1233 REITs that because the interest rates talk about rates very much do they have high interest rates causes REITs? All sorts of problems. What's the real like once they start lowering interest rates, you can be in pretty much any good rate and you're gonna make a shit ton of money.
It's kind of like Bubble doesn't matter. You just throw your darts at a dartboard to
do the diligence and make financial
I guess meant like the people are like, Oh, I made a lot of money. It's like yeah, it was a bear market or a bull market. Everybody made money.
Every every REITs having problems right now even like Realty Oh, everyone's favorite freaking one which I can't stand Realty.
Oh came up on a 52 week low. Cannot the other week. The upstanding like
that's like one of the best REITs that Oh, because the interest rates are causing all sorts of problems. And then here's like office space. is like another one we've made a crap ton of money on that. I don't know what to do with it. Say RLP 12.74% yield 3.9 P E with an industry average of 5.2. A is in Nicole. So if you have a problem with call, then ignore it but so like right there is 11 stocks that if you had like $10,000 just fucking put 1010 of them and you're going to make money and appreciation plus growth grab dividends. That's why it's important y'all.
Super important.
We currently have sorry, we currently own ua NAFCG NEP tren dri en a VR and AR LP. So, but we don't, I'm not selling them. So it doesn't matter. Like we don't have a vested interest. Like I'm trying to drive the price up so I can sell a month I'm holding on to every one of them. But I know you have to put that stupid disclaimer in there. Because it's like, ethical.
I have it in the show notes.
It's ethical. So that's, that is the reasoning behind getting something that's valued correctly. That's why Warren Buffett does that's why Carl Icahn does it. That's why pretty much you look up any investor that has billions of dollars they all have value investing as
because it just makes sense. My guess is rich people do they try to find it literally just makes sense. Why wouldn't you buy the thing that's on sale? Especially if you like the thing because people like
Apple and Tesla, although we did mention the yield max you can make a ton of money like I've actually held the Tesla yield Max now for like four months and do we're making like 70% a year. It's like it we're making so much money that I mean the price has gone down because Tesla is struggling but like I know that the options for the Tesla and Tesla's price is gonna go up and then they'll rise again. So like, in the meantime, we're like, oh, I put that all
the cash, I'm gonna say and we're just getting our initial investment back. So we're just like, I'm putting
other stuff and then there's a bond one I know this. I didn't actually put it in my list, but PDI is probably about 30%, undervalued. PDI is like one of the benefits of PIMCO bond and it's probably one of the best bond funds out there. Cocoa and like everything I've been reading all these people like buy the bonds, buy the bonds, like do that. done buying the bonds
for six months plus, losers guys are behind the eight ball. They're the ones that are trying to pump you guys in the thing. Yeah,
so that's so they can make a profit. I hope it makes sense. If it doesn't make sense, email me, or leave a comment and I'll gladly walk you through it again. But like it's kind of simple once you actually once you actually have the chart from for it and I say for a full array once you actually have the full ratio chart that has the current PE s. It's simple. You actually just have to find the industry average chart because then once it like literally all you do is you do a screener and that brings up stuff and then you just take, just take that ticker, ticker, whatever ticker number ticker letter, my room was assembled ticker symbol, plug it in, make sure the revenue is good make sure the debts okay make sure the dividends cool make me you can even go further and do like a payout ratio with payout ratio meaning like how much of their profits are going towards paying out their dividends? good ballpark figures under 75% Unless it's a REIT or BDC. They have to pay at 90% Yes, sir. You actually put the payout ratio in that as well then you'll find companies that are awesome. And then you just plug them in and once you have this actual chart on your cheat sheet here you can go Oh, well that one in all of its peers are like four times more or four times higher than this one. So this one's gonna go up. Easy peasy. money making machine easy
peasy chicken sleazy. I don't know all its Winner winner chicken dinner completely butchered the crap out of that one chicken dinner.
So that's that hopefully if you're not if you guys have any other questions or comments or anything else that you want me to go over let me know I have no problem doing deep dive research. Even if it's just individual stocks. I don't care how
you guys don't get to this in the interim before next week. I think we're gonna get on the health route.
I was gonna do the health route this week. But it didn't work out because I got this question like the health route like I was reading a few articles that were mentioning behavioral finance and like one of the components of behavioral finance is health and if you don't have a healthy psyche have a healthy mind. And healthy body. You can't be positive you can't be a good investor because you just make irrational and illogical decisions because your mind is not working. And
we'll get into the details of that when we actually do that episode. I don't want to get too far in the weeds because then we'll just start rambling and
super important. Super important. All right.
So thank you guys for tuning in. Yes,
thank you. Hopefully this helps. I hope it does. Because this is like this is probably the most important podcast we've had to be honest. So far. I'm not trying to hype it up. I don't care like I'm not trying to get more like but I'm saying like the content and this is probably the most important components of being successful investor, not even an income investor, just a successful investor. Knowing when something is at a buy point because it's undervalued. That's it's the most important component of investing, which
is what all the people who actually make money and investing to you versus the 90 to 99% of the people who lose money. That's literally the difference between that and that. So we want you guys to be in that exclusive 1% or whatever. And we
were just talking about this today, like what I just gave you, you literally could spend $100 a year on a subscription, they wouldn't tell you that. Just so you know, you got all this for free. And you can spend money and not get
near what I just gave you because Tim has moral transparency problems and no I want everyone to be doing what he has moral transparency problems. He's like the most moral frickin investor you'll probably ever meet.
But this was the most important podcast so if you only listen to one, listen to this one.
but they won't know till the end don't that doesn't make sense. like reverse
clip that and put it in the beginning and put the title like this is the most important podcast ever.
Alright guys, we're gonna wrap it up. do us a HUGE favor. Give us a like give us a review. and share this with people who think it'll help. Enjoy your day, we will see you next week.

What Is Value Investing
How To Find Undervalued Investments
Look For Par Value And Nav Price For Bonds And Funds
Where To Find The Metrics You Need
Use Screeners To Find Stocks To Research
Comparing A Stock To It's Industry Peers
Why You Need To Buy When A Stock Is Undervalued
Why This Matters Using Real World Examples
2 Options When Valued Similar To Peers
Again Reasons Why You Buy Undervalued Companies
Topics For Future Episodes