The Market for Perpetual Options -- Page 2
Current market conditions have stocks displaying their option characteristics.
There are a few characteristics that can be used to identify stocks with a great deal of optionality. Low multiples of price/sales, price/trailing earnings, and price/book are key signs. A number of high-optionality companies are listed below.
American Reprographics Company
Moat Rating: Narrow | Fair Value Uncertainty Rating: Medium | Morningstar Rating: 5 Stars
From the Analyst Report: " American Reprographics Company (ARP) has carved itself a niche by providing document-management services to the nonresidential construction industry. The firm manages production and delivery of large-format blueprints, which, in the construction business, is a common language for numerous constituencies, from architects to subcontractors. We like ARC's experienced management team and its ability to generate healthy cash flows even during an economic downturn."
Moat Rating: none | Fair Value Uncertainty Rating: Medium | Morningstar Rating: 5 Stars
From the Analyst Report: " Alumina, Ltd. (AWC) has a 40% interest in Alcoa World Alumina and Chemicals, the world's largest alumina producer. Alcoa (AA) owns the other 60%. AWAC is predominantly exposed to the first two stages in the aluminum production chain: bauxite mining and alumina refining."
Philip Guziec does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.