{"id":1105356,"date":"2019-03-14T12:30:22","date_gmt":"2019-03-14T12:30:22","guid":{"rendered":"https:\/\/dailyreckoning.com\/?p=106930"},"modified":"2019-03-14T12:30:22","modified_gmt":"2019-03-14T12:30:22","slug":"you-can-now-buy-blue-chip-stocks-at-a-27-discount","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1105356","title":{"rendered":"You Can Now Buy Blue-Chip Stocks at a 27% Discount!"},"content":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/you-can-now-buy-blue-chip-stocks-at-a-27-discount\/\">You Can Now Buy Blue-Chip Stocks at a 27% Discount!<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-jody-chudley-noname.jpg\" alt=\"Jody Chudley\" align=\"left\" \/><\/p>\n<p>Today I&#8217;m going to show you how to get 27% off a basket of blue chip stocks.<\/p>\n<p>There is no catch here.<\/p>\n<p>You pay only 73 cents on the dollar. Everyone else pays the full buck.<\/p>\n<p>It&#8217;s a deal that sounds too good to be true\u2026 I know.<\/p>\n<p>But it isn&#8217;t.<\/p>\n<h3 class=\"subhead\">This Opportunity is a No-Brainer Bargain<\/h3>\n<p>The basket of blue chip companies that I&#8217;m referring to consists of exactly ten stocks.<\/p>\n<p>These are the companies that are currently owned by <strong>Pershing Square Holdings (PSHZF)<\/strong>, a publicly traded investment company.<\/p>\n<p>Pershing Square Holdings has no operations. It just owns stocks.<\/p>\n<p>If you own Pershing Square Holdings, you own the stocks that it owns \u2014 nothing more, nothing less.<\/p>\n<p>Today, you can buy Pershing Square Holdings in the stock market for around $16.34 per share. Meanwhile, the value of the ten stocks that Pershing Square owns equates to $22.40 per share.<\/p>\n<p>You can see that net asset value right <a href=\"https:\/\/pershingsquareholdings.com\/company-reports\/weekly-navs\/\"  rel=\"noopener\"><strong>here.<\/strong><\/a><\/p>\n<p>That means today, you can buy $22.40 worth of publicly traded stocks for $16.34 per share. That is 27% off the price that this basket of stocks is trading for in the stock market right now.<\/p>\n<p>It&#8217;s as simple as that.<\/p>\n<p>The ten stocks that Pershing Square owns are fine companies, too. The financial highlights are captured below.<\/p>\n<ul>\n<li>Pershing&#8217;s ten stocks are more profitable than the average S&amp;P 500 company (22% EBIT<sup>1<\/sup> margins vs. 15% for the S&amp;P 500)<\/li>\n<\/ul>\n<ul>\n<li>Pershing&#8217;s ten stocks are growing faster than the average S&amp;P 500 company (14% EBIT growth per year vs. 8% EBIT growth for the S&amp;P 500)<\/li>\n<\/ul>\n<ul>\n<li>Pershing&#8217;s ten stocks are growing on a per share basis even faster (18% earnings per share growth per year vs. 8% earnings per share growth for the S&amp;P 500)<\/li>\n<\/ul>\n<p>So not only are you buying a basket of stocks at a 27% discount, you are also buying a basket of stocks that is comprised of very strong companies.<\/p>\n<h3 class=\"subhead\">Tell Me The Names of the Stocks in this Basket Already!<\/h3>\n<p>These ten companies \u2014 which combined have fatter profit margins and are growing faster than the S&amp;P 500 \u2014 are depicted below. You probably know most of these world class companies.<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/dweaay7e22a7h.cloudfront.net\/wp-content\/uploads\/2019\/03\/pershingsquare.png\" alt=\"Pershing square holdings\" \/><\/p>\n<p>As a group, these ten stocks perfectly align with\u00a0Pershing Square&#8217;s investment\u00a0philosophy\u00a0\u2014\u00a0to invest in conservatively financed, non-cyclical, and economically-resilient businesses that tend to outperform in volatile market environments.<\/p>\n<p>This has generated a cumulative return of 606.6% for PSHZF shareholders since 2004 vs. just 236.5% for the S&amp;P 500.<\/p>\n<p>This is a portfolio of stocks that I would be happy to own at their current trading prices. But at a 27% discount to the market&#8217;s current trading prices, I believe this is a rare opportunity that combines the potential for significant reward with very little downside risk.<\/p>\n<h3 class=\"subhead\">And If You Aren&#8217;t Convinced Yet\u2026<\/h3>\n<p>There are also three cherries on top of this opportunity that make it even better:<\/p>\n<p><strong>Cherry on Top #1:<\/strong> Pershing Square Holdings has instituted a quarterly dividend of $0.10 per share, which means that the stock yields almost 2.5%. I believe this dividend is not only enjoyable by itself, but it will also start to attract income investors to the stock which will do good things for its trading price.<\/p>\n<p><strong>Cherry on Top #2:<\/strong> The Pershing Square investment team owns a significant percentage of Pershing Square Holdings shares, and are therefore fully aligned with shareholders. Never underestimate the power of having incentives aligned.<\/p>\n<p><strong>Cherry on Top #3:<\/strong> Pershing Square Holdings has been using excess cash to repurchase shares at this big discount to net asset value. Last year, $300 million of shares were repurchased at a discount which is very accretive on a per share basis for remaining shareholders.<\/p>\n<p>You can look long and hard for stock market bargains. Here is one that is hiding in plain sight just waiting to become a part of your portfolio.<\/p>\n<p>Here&#8217;s to looking through the windshield,<\/p>\n<p><img decoding=\"async\" class=\"align-none\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/signature-jody-chudley.jpg\" alt=\"Jody Chudley\" \/><\/p>\n<p>Jody Chudley<br \/>\nFinancial Analyst, <em>The Daily Edge<\/em><br \/>\n<a href=\"mailto:EdgeFeedback@AgoraFinancial.com\"  rel=\"noopener\"><strong>EdgeFeedback@AgoraFinancial.com<\/strong><\/a><\/p>\n<p style=\"font-size: 14px;\"><sup>1<\/sup> EBIT = Earnings before interest and taxes which is a proxy for operating cash flow less amortization<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/you-can-now-buy-blue-chip-stocks-at-a-27-discount\/\">You Can Now Buy Blue-Chip Stocks at a 27% Discount!<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/you-can-now-buy-blue-chip-stocks-at-a-27-discount\/\">You Can Now Buy Blue-Chip Stocks at a 27% Discount!<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p>Today, Jody Chudley reveals one way to buy a basket of blue chip stocks for 73 cents on the dollar&hellip;<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/you-can-now-buy-blue-chip-stocks-at-a-27-discount\/\">You Can Now Buy Blue-Chip Stocks at a 27% Discount!<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[366,1985,1986,1987,1988,477],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105356"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1105356"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105356\/revisions"}],"predecessor-version":[{"id":1105482,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1105356\/revisions\/1105482"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1105356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1105356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1105356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}