Chasing Value: BG, HNP, LTR, VLO, NCT price-to-cash flow

16 01 2008

Chasing Value: BG, HNP, LTR, VLO, NCT price-to-cash flow

Posted by: in Stocks Money News

Filed under: Berkshire Hathaway (BRK.A), Reliance Steel and Aluminum (RS), Valero Energy (VLO), Huaneng Power Intl ADS (HNP), Chasing Value, Anglo Amer ADR (AAUK), Stocks to Buy, Newcastle Investment (NCT), Raytheon Company (RTN), Bunge Ltd. (BG), Loews Corporation (LTR)

The price-to-cash flow ratio has been repeatedly promoted in various publications as one of the more important metrics to consider when evaluating a stock to buy. Apparently over long periods of time it is more telling than the often quoted price-to-earnings ratio. I have read that cash flow is a key metric that “my pal Warren” looks at for Berkshire Hathaway (NYSE: BRK.B) investments.

Here are the figures for the Chasing Value: Final list — 8 stocks for 2008 in order from highest to lowest P/CF. The 12/28/08 starting stock price, yesterday’s closing price and the current P/CF for the most recent fiscal year (MRFY) are listed. Only two stocks are up, while six are down.

Bunge Limited (NYSE: BG) BG was $119.03, up to $133.00, P/CF 15.99

Raytheon Co. (NYSE: RTN) RTN was $61.51, up to $61.58, P/CF 13.64

Huaneng Power International, Inc. (ADR) (NYSE: HNP) HNP was $41.75, down to $38.40, P/CF 8.12

Reliance Steel & Aluminum (NYSE: RS) was $54.32, down to $49.79, P/CF 7.55

Loews Corp. (NYSE: LTR) at $49.35, down to $49.01, P/CF 6.91

Valero Energy Corp. (NYSE: VLO) VLO was $70.55, down to $59.87, P/CF 5.99

Anglo American plc (ADR) (NASDAQ: AAUK) was $30.79, down to $29.31, P/CF 3.90

Newcastle Investment Corp. (NYSE: NCT) was $13.08, down to $11.03, P/CF -6.52

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