Friday, January 17, 2014

Trade - Buy

I added more to my position with Ensco PLC (ESV)

23 shares @ $54.84 on 1-17-2014

This will increase my forward 12-month dividend by $69.00 to a total of $1,189.44

I updated my Portfolio to reflect the changes.

I last posted my ESV buy Here


Here you can see that there is a strong support for ESV around the $54 range, and it is almost hitting the trend line. Another thing to look at is the RSI graph. You can see that around the 35 range it bonuses back up. This lead me to believe that it is a good time to buy more shares of ESV.





Here is a 15 year FAST graph. This shows that it is very much undervalue. Notice the Debt/Cap at 27%. Which is very good.



Here is a 4 year FAST graph which shows earnings going up and the price staying much the same.


This is the future estimated earnings and how my current investments may perform in the next 10 years.



My only concern with this company is that it does not have a long history of dividend growth. They do have a nice history of paying dividends with no cuts.

Graph from http://www.longrundata.com/index.php



Morningstar (4 star out of 5) Fair value of $70.00
S&P Capital IQ (4 star out of 5) Fair Value of $61.50
Yahoo Finance Target of $62.72
Marketwatch Target of $62.93



What do you think of ESV? Like what you see or don't?

11 comments:

  1. I noticed AAI also purchased some ESV not too long ago. Nice buy. Guess I'll have to look a bit more into them. I was surprised to see such a low debt-cap ratio. I've never researched the other drilling rig companies, but I figured they would have higher debt ratios. If ESV is less than most of them there that could spell good things for the future whenever the oilfield inevitably goes bust for 6 months. Also, what's with the missing price data in your first chart from 2010 through ~Jan 2011? Just missing in their database or something else?

    ReplyDelete
    Replies
    1. PIP,
      ESV looks great. I just hope they continue growing there dividends,

      I am not sure why the graph is cut. I use https://www.timetotrade.eu/ for the graph. I like how simple it is to use and draw lines.

      Delete
  2. Nice buy Financial Freedom! I'm not a charts guy, but I liked the look of those formations. Have a great weekend.
    -Bryan

    ReplyDelete
    Replies
    1. Thanks Fast.

      I look at charts once I am happy with the fundamental. Once I determine that, I like to look at the charts and determine the best place to buy. Lets see how that goes lol :)

      Delete
  3. FFDividend,

    Nice purchase. I doubled up on shares this past week. I need to post again about the buy. Thanks for the graphs, they reaffirm the reasons I like the company. I don't plan on adding any more for a while. I consider them a slightly speculative play given the short dividend history.

    ReplyDelete
    Replies
    1. AAI,

      Its hard to pass a company with a good dividend yield that is sustainable and has great EPS growth.

      Delete
  4. Nice add-on. Glade to see that you also find Ensco undervalued.

    There is not much in the way of deals out there. Where is a market correction when you need one...

    ReplyDelete
    Replies
    1. Thanks ADY, a 10% correction will be nice.

      Delete
  5. From 2008 to 2011 Ensco has decreased its EPS every year.
    I do not know if that's good ...

    But the dividend yield is very good.
    And the dividend is growing strong!

    I wish you the best with this company!

    regards
    D-S

    ReplyDelete
    Replies
    1. Hi Dividenden-Sammler, yes you are right, but they also raised there dividend during that time.

      Delete
  6. Just discovered ESV thanks to your blog. Is that taxed the same way other dividend stocks are taxed? Asking since it is headquarted in UK it seems. Thanks

    ReplyDelete