My Core Value screen scored the following names as the highest ranking outputs on 3/15:
- Compania Cervecerias Unidas ($CCU)- watchlist
- Westjet Airlines ($WJA.TO)- watchlist
- Standard Motor Products ($SMP)- watchlist
- Foot Locker ($FL)- new to list
- Genesco Inc ($GCO)
- Cisco Systems ($CSCO)- vetoed; too much idiosyncratic risk; awash in cash, which suggests it can’t find investment opportunities to increase ROE (don’t want to rely on speculation that they can find an acquisition target at a reasonable price that can meaningfully increase the growth rates of a $110B market cap company doing $48.6B in sales, so once they distribute cash to shareholders, the lack of growth in OCF since 2007 doesn’t make me think there’s sustainable value here).
A few of these individual holdings will pass my subsequent layers of due diligence, and I’ll perhaps deploy some cash to initiate positions.
Here’s a followup on the outputs from my last Core Value screen 2/21:
Passive +5.41% (alpha= +3.12)
Active +8.01% (alpha= +5.72)