Read the story here. Advertise at Before It's News here.
Profile image
By The Daily Reckoning (Reporter)
Contributor profile | More stories
Story Views
Last Hour:
Last 24 Hours:

You Can Now Buy Blue-Chip Stocks at a 27% Discount!

% of readers think this story is Fact. Add your two cents.

This post You Can Now Buy Blue-Chip Stocks at a 27% Discount! appeared first on Daily Reckoning.

Today I’m going to show you how to get 27% off a basket of blue chip stocks.

There is no catch here.

You pay only 73 cents on the dollar. Everyone else pays the full buck.

It’s a deal that sounds too good to be true… I know.

But it isn’t.

This Opportunity is a No-Brainer Bargain

The basket of blue chip companies that I’m referring to consists of exactly ten stocks.

These are the companies that are currently owned by Pershing Square Holdings (PSHZF), a publicly traded investment company.

Pershing Square Holdings has no operations. It just owns stocks.

If you own Pershing Square Holdings, you own the stocks that it owns — nothing more, nothing less.

Today, you can buy Pershing Square Holdings in the stock market for around $16.34 per share. Meanwhile, the value of the ten stocks that Pershing Square owns equates to $22.40 per share.

You can see that net asset value right here.

That means today, you can buy $22.40 worth of publicly traded stocks for $16.34 per share. That is 27% off the price that this basket of stocks is trading for in the stock market right now.

It’s as simple as that.

The ten stocks that Pershing Square owns are fine companies, too. The financial highlights are captured below.

  • Pershing’s ten stocks are more profitable than the average S&P 500 company (22% EBIT1 margins vs. 15% for the S&P 500)
  • Pershing’s ten stocks are growing faster than the average S&P 500 company (14% EBIT growth per year vs. 8% EBIT growth for the S&P 500)
  • Pershing’s ten stocks are growing on a per share basis even faster (18% earnings per share growth per year vs. 8% earnings per share growth for the S&P 500)

So not only are you buying a basket of stocks at a 27% discount, you are also buying a basket of stocks that is comprised of very strong companies.

Tell Me The Names of the Stocks in this Basket Already!

These ten companies — which combined have fatter profit margins and are growing faster than the S&P 500 — are depicted below. You probably know most of these world class companies.

As a group, these ten stocks perfectly align with Pershing Square’s investment philosophy — to invest in conservatively financed, non-cyclical, and economically-resilient businesses that tend to outperform in volatile market environments.

This has generated a cumulative return of 606.6% for PSHZF shareholders since 2004 vs. just 236.5% for the S&P 500.

This is a portfolio of stocks that I would be happy to own at their current trading prices. But at a 27% discount to the market’s current trading prices, I believe this is a rare opportunity that combines the potential for significant reward with very little downside risk.

And If You Aren’t Convinced Yet…

There are also three cherries on top of this opportunity that make it even better:

Cherry on Top #1: Pershing Square Holdings has instituted a quarterly dividend of $0.10 per share, which means that the stock yields almost 2.5%. I believe this dividend is not only enjoyable by itself, but it will also start to attract income investors to the stock which will do good things for its trading price.

Cherry on Top #2: The Pershing Square investment team owns a significant percentage of Pershing Square Holdings shares, and are therefore fully aligned with shareholders. Never underestimate the power of having incentives aligned.

Cherry on Top #3: Pershing Square Holdings has been using excess cash to repurchase shares at this big discount to net asset value. Last year, $300 million of shares were repurchased at a discount which is very accretive on a per share basis for remaining shareholders.

You can look long and hard for stock market bargains. Here is one that is hiding in plain sight just waiting to become a part of your portfolio.

Here’s to looking through the windshield,

Jody Chudley
Financial Analyst, The Daily Edge
[email protected]

1 EBIT = Earnings before interest and taxes which is a proxy for operating cash flow less amortization

The post You Can Now Buy Blue-Chip Stocks at a 27% Discount! appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at

Order by Phone at 888-809-8385 or online at

Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.