September 4, 2009

Consolidated Edison (ED)

Consolidated Edison, Inc. (Con Edison) is the holding company of
Consolidated Edison Company of New York, Inc. (Con Edison of New York), and
Orange and Rockland Utilities, Inc. (O&R), both of which are regulated
utilities. Con Edison’s principal business segments are Con Edison of New
York’s regulated electric, gas and steam utility segments, O&R’s regulated
electric and gas utility segments and Con Edison’s competitive energy
businesses. Con Edison of New York provides electric service in all of New
York City (except part of Queens) and Westchester County, an approximately
660 square mile service area with a population of more than nine million.
O&R, along with its wholly owned utility subsidiaries, Rockland Electric
Company (RECO) and Pike County Light & Power Company (Pike), provide
electric service in southeastern New York and in adjacent areas of northern
New Jersey and eastern Pennsylvania, an approximately 1,350 square mile
service area.

More from Reuters »

Filter 1: Insider Trading

Insider trading we will defined as the buying or selling of corporate stock
by a corporate officer in one’s own company. By examining Insider trading we
can hope to gain insight into the future of a business as it is seen by
those most closest to operations. As savitt put it so eloquently people sell
stock for all sorts of reasons but only ever buy it for one. To read more
about why we value insider trading click here.

Filer's Name Relation Title Trans. Date Price Mkt Value
Muccilo Robert VP & Chief Accounting Officer 31/07/2009 $37.51 $1,900
Moore Elizabeth D General Counsel 31/07/2009 $37.51 $1,056
Rana Louis L

President & COO (CECONY)


Ryan Joann F

SVP, Business Shared Services




Del Giudice Michael J




Ranger Michael WDirector



Ranger Michael W





Del Giudice Michael J





Ranger Michael W





Del Giudice Michael J





Filter 2: Graham Analysis

Benjamin Graham is known as the father of value investing. Through his book
the intelligent investor he created a set of criteria that a company should
meet in order to merit his investment. To read more about this criteria and
why Graham considered each so significant click here. There is debate over
the utility of applying one set of rules to compare company’s in different
sectors and different markets, therefore we have provided comparisons
against, industry, sector and indice.


(Blue= CONED, Green=Industry, Yellow=Sector, Red=S&P 500






P/E is high I'd prefer to see this under 15 for an industry. Comparisons against industry and sector aren't very relevant as the majority of these companies don't pay a dividend.

Price to Book



S: 1.30

Ind: 3

A price to book ratio of 1.5 is desirable to assure we aren't overpaying. ConEd comes in at 1.03 which is a bit lite of where we want to be.

Current Ratio





A current ratio of 2 indicates that the company is in a good position to control its debt position should the tides change. A 1.10 current ratio is not that good.






A 5yr EPS is an important way of assuring we aren't buying a low quality company. In this case the EPS of 3.35 is low I wold like to see a much stronger number here.

Dividend Yield



S::0.11 Ind:1.55

A solid dividend is something I always like to see. Anything above 3.5% is a nice to see, 6% is very pleasant.

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April 4, 2009

We are moving to

After what has been a fairly successful start on blogger we are moving to a new hosting service at I hope you will all follow us there and enjoy the new services and features available!

March 15, 2009

A Better Canadian Stock Screener

As readers of my blog know I have been looking for some time for a good Canadian screener, specifically a screener that allows for Graham style analysis. After finding one earlier this year that ran as an application I set my sights on trying to find one that runs as a web application. Well little did I realize but there was one right under my nose.

Zacks has been around for a while and has recently released a new beta of there free stock screener.
I am pleased to report that Zacks has the ability to create screeners that you can point at TSX.

For info on the graham criteria have a look at my earlier post.
The screener can be found here, enjoy: Zacks Screener

The author of this article did not receive any payment for this recommendation.

March 11, 2009

Everything is amazing, nobody is happy

Every once in a while it is good to put things in perspective. Here is a bit of a laugh but there is a good point in there too.

February 20, 2009

The Truth about stock market returns

If you had $100 to invest in the DOW in 1928 you would have $3128.52 today- what a deal right? Wrong, let me tell you why.

I've been to several financial offices where they proudly display the graph of the DOW since 1928. The desired effect being that we are to think that the market always goes up, you just have to be patient. I, like many people, didn't appreciate just how patient one has to be though until I examined the returns in more detail.

Lets work through the numbers. If I had invested $100 in an DOW index fund in 1928 as the market was starting to fall apart (yes I know they didn't exist but it serves our purpose well and I think you understand the intent) and left it there I would have had $3128.52 Feb 2, 2009. But who can wait 80 years for a return- not me, that is more than a lifetime.

The mind naturally assumes though that if I waited half of that time I should have approximately (give or take 10%) half of that return so somewhere around $1562.76- that is a pretty good return for 40 years. So does that hold up?

Sadly no, you would have a paltry $339.26 40 years after the initial investment, nowhere near our goal. But, you might say, 300% return in 40 years is still a pretty good return, not as good as what we see at 80 but I still like it. In the big picture though a 300% return over 40 years is really not that great- that is a long time to wait for 300%. So we hack it down again, could I get 150% in 20 years, I am patient enough to wait 20 years for 150% so how about $300 in 1948? Well how would you feel about $69.31 instead?

The reality of it is compound interest can help you or really hurt you. 10% return one year and a 5% loss the next year is not the same as two 5% gains.

InvestmentY1 RORY1 NetY2 RORY2 Net(Compound)
Interestingly enough if instead of investing our money in the market in 1928 we had found a stable bank that could return us a paltry .31% on our investment compounded monthly, or 3.72% per year we would have a higher return on our investment from the bank account than the DOW almost every month until February 1987, some 59 years after the initial investment.

The point I am trying to make is simply this, the bad months can do incredible damage to your portfolio in the long run. Be wary of investment systems that advertise an average made up of huge gains, and substantial losses. Those losses may hurt you more than you might first think. Stability and consistency of returns wins the race in the long run.

Learning to invest money in the stock market is frightening. What is the best way to invest money: index funds in the new york stock exchange or world markets, stocks or bonds, penny stocks or large cap, safe investing or aggressive, get a financial plan or just get financial advice? There are a myriad of different ways to invest money.
Value investing is the principal of finding cheap high quality companies it was created by contrian investor Benjamin Graham and later further enhanced by Buffett, Greenblatt and Dreman. In this blog we will explore this investment theory by looking at the investment choices I make, why I make them and how they end up working out, this site is for the intermediate investor who wants to continue learning and finding the best places to invest money.