Friday, June 10, 2016

Brexit Watchlist. Never let a good crisis go to waste.

Apparently there's this thing called the Brexit happening on June 23, 2016. Something about England trying to leave the EU, I don't know all the details. The English Brexit party is leading in some polls and people are freaking out. The only thing we can do is pray that England leaves the EU, cause a huge market crisis, and pick stuff up. I never let a good crisis go to waste. 

So let's look at some quality UK stocks. All of these stocks pay in pounds or euros which are converted to US dollars. I am using scottrade and yahoo finance for my values.

Unilever (UL): Pays 4x a year

Unilever PLC operates in the fast-moving consumer goods market in the Africa, Americas, Asia Pacific, Europe, and Middle East. The company operates through Personal Care, Foods, Refreshment, and Home Care segments.

Current price: 46.93
Current PE: 24.48
Current yield: 3.13

Yahoo 1 year est: $48.00
S&P fair value: NA
S&P 1 year est: $46.00

My target Price: $35-40.00

Diageo (DEO): pays 2x a year, 27 years of dividend growth

Diageo plc produces, markets, and sells alcoholic beverages worldwide. It offers scotch and Irish whiskey, gin, vodka, rum, beer and spirits, Irish cream liqueurs, wine, Raki, tequila, Canadian and American whiskey, Cacha├ža, and brandy, as well as adult beverages and ready to drink products.

Current price: 109.81

Current PE: 19.09
Current Yield: 2.32%

Yahoo 1 year est: 121.38

S&P fair value: $97.70
S&P 1 year est: $110.00

My target price: $90-100.00

National Grid (NGG)-Pays 2x a year, 24 years of dividend growth

National Grid plc transmits and distributes electricity and natural gas. It operates through four segments: UK Electricity Transmission, UK Gas Transmission, UK Gas Distribution, and US Regulated. The UK Electricity Transmission segment owns and operates electricity transmission networks in in England and Wales. It operates electric transmission system of approximately 7,200 kilometers of overhead lines; 1,500 kilometers of underground cables; and 338 substations. The UK Gas Transmission segment owns and operates gas transmission networks in Great Britain.

Current Price: 72.23

Current PE:  14.36
Current Yield: 4.44%

Yahoo 1 year est: $77.46

S&P fair value: $67.80 
S&P 1 year est: $68.00

My target price: $63.60 for the 5% yield 

Smith and Nephew-Pays 2x a year

Smith & Nephew plc develops, manufactures, markets, and sells medical technology products and services worldwide. The company offers sports medicine joint repair products for surgeons, including an array of instruments, technologies, and implants necessary to perform minimally invasive surgery of the joints; and arthroscopy enabling technologies for healthcare providers, such as fluid management equipment for surgical access, high definition cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency wands, electromechanical and mechanical blades, and hand instruments for removing damaged tissue.

Current price: 33.13
Current PE: 36.33
Current yield: 2.19%

Yahoo 1 year est: $41.17
S&P fair value: $34.70
S&P 1 year est: $37

My price target: $25.00. I need a deep discount 

My buy list is as follows; UL, DEO, and NGG. Maybe SNN.

These are my opinions. Don't follow them. 

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