Value Screeners Identify Good Opportunities for 2019

As the stock market tumbles from the highs first set around January 2018 and later around October 2018, investors might wonder if there are still any good investing opportunities for 2019. Fortunately, GuruFocus tracks the number of stocks meeting the criteria based on strategies from legendary value investors like Ben Graham, Peter Lynch, Joel Greenblatt (Trades, Portfolio) and Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio). As a result, we will discuss the records for the Ben Graham Net-Net, Undervalued Predictable, Buffett-Munger and Magic Formula screeners.

Dow skyrockets on first Friday of New Year, though still sharply below all-time highs

On Friday, the Dow Jones industrial average closed at 23,431.74, approximately 745 points or 3.29% higher from Thursday’s close of 22,686.22, yet still approximately 3,400 points lower than the all-time high of 26,828.39 set on Oct. 3, 2018. CNBC columnist Fred Imbert listed several reasons for Friday’s surge, including strong December job numbers and Federal Reserve Chairman Jerome Powell’s announcement the Fed will be “patient” in raising interest rates. Stocks leading the surge included Netflix Inc. (NASDAQ:NFLX), Intel Corp. (NASDAQ:INTC) and Buffett’s favorite tech stock, Apple Inc. (NASDAQ:AAPL). Netflix closed at $297.57, approximately 9.72% higher from its previous close of $271.20, while Intel closed at $47.22, approximately 6.14% higher from its previous close of $44.49.

Apple closed at $148.26, rebounding 4.27% from Thursday’s close of $142.19, following its warning of shrinking revenue guidance for the December quarter.

Ben Graham net-net

Graham defined a net-net as a company whose stock trades below its net current asset value. Key criteria for net-nets include the following:

A price to net-net working capital less than 0.66, where net-net working capital equals the sum of cash and cash equivalents, 75% of total receivables and 50% of

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