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Go through your bills and Eliminate wasteful spending

The most obvious wasteful spending for me was a storage locker I was paying nearly $100 a month for. It made me so angry that I eventually began this journey and started writing this personal finance blog.

A Penny Saved is a Penny Earned and realize when you go through your bills that every dollar you can save is earned money.

Don’t dwell on the money that you’ve wasted in the past. Focus on your debt free future. I was paying for auto renew on memberships that I didn’t even remember. But Never again.

I began to explore our current consumer culture and why we buy what we buy. This helped me understand why I was spending so much money shopping. More on Consumer Culture here.

Negotiate Discounts:

For those services and memberships that you like but would like to pay less for, you need to contact the merchants and ask for a discount. Yes, you can do it. And yes they will give you discounts on your memberships: Cell phone carrier, cable company, Satellite radio etc… I’ve written a whole post about How to negotiate Discounts.

Improve your Money Mindset:

One of the best and most readable books on personal finance is the classic, Richest man in Babylon. It contains all the wisdom to help anyone become financially free. It is simple and straightforward, but not easy. I recommend it highly and is worth re-reading every few years.

“A part of all I earn is mine to keep.” – The Richest Man in Babylon (here)

Saving money doesn’t have to be a grim task. Make it fun. Make it a game. It’s your money.

You should get value from every dollar you spend.

Five Incredibly Undervalued Stocks You Dont Want To Miss

May 19, 2021 by Frugal Prof

“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
― Benjamin Graham,

Update: I have begun posting All of my Stock and Investing articles on a new platform called Substack and I hope you will subscribe to my newsletter there.

There will be free content but there will also be a paid newsletter for more serious investors who are in search of hidden gems (undervalued stocks). I’ve included Four of the Five stock ideas here. To get the last one, visit my Substack Page Here

About the Substack newsletter:

How much would you pay for an experienced portfolio manager to filter the market of thousands of stocks and find the hidden gems?

My aim is to deliver solid content that makes you money. I hope you’ll consider subscribing. The first 100 Paid Subscribers get a 25% discount.

This newsletter will be published four times a month and recommend four to five stocks in each newsletter. The goal would be to assemble a portfolio of undervalued stocks.

I suggest holding these stocks for a year. This allows time for the market to discover these undervalued gems.

The stocks that have appreciated should be held beyond a year, so they can be recorded as long term gains for tax purposes. The stocks showing a loss should be sold before one year and recorded as a short term loss. This is the most beneficial strategy to minimize taxes. (Not tax advice).

Value Investing

Legal Disclaimer: The FrugalProf is not a registered investment advisor.  
Investing involves risk.  
Financial information provided is believed to be accurate but we are not responsible 
for inaccuracies.  
I may own these securities for myself or in accounts that I manage. 
Past performance is no guarantee of future returns.

Brief Overview of Value Investing:

Value investing is about minimizing risk.

Ben Graham created value investing because of his painful experiences losing money in the Great Depression.

Graham’s losses in the 1929 crash led him to hone his investment techniques. These techniques sought to profit in stocks while minimizing downside risk.

Graham also stressed the importance of always having a margin of safety in one’s investments. This meant only buying into a stock at a price that is well below a conservative valuation of the business.

Overview of the Current Market:

This is an expensive market.

The stock market is at all time highs fueled by unprecedented stimulus from the Federal government of at least $3T. The following stocks are very undervalued in an overvalued market. However, they don’t meet Ben Graham’s strict definition of value.

Recent Examples:

Michael’s Stores: $MIK

I wrote about Michael’s as a great contrarian play when Big Short famed Investor, Michael Bury disclosed a stake. It was a $3 Stock back in May. Here’s what I wrote:

Michael’s is another contrarian play. Hard to resist since with nearly $2 in earnings and a $3 share price, its obviously undervalued. Full post here

The company is being bought out at $21 per share.

This is what we want – attractive companies that are undervalued and too cheap to ignore. A few big winners is all it takes. However, not all recommendations will turn out this good.

Current Recommendations:

WW International (Weight Watchers) $WW

Meredith Corp: $MDP

Quest Dianostic: $DGX

Vector Group: $VGR

Weight Watchers: Symbol: $WW

WW International Inc., formerly Weight Watchers International, Inc., is a global wellness company. The Company offers commercial weight management program. Its services and products include digital offerings provided through its websites, mobile sites and applications, workshops conducted by the Company and its franchisees, consumer products sold direct to consumers, licensed and endorsed products sold in retail channels, and publications.

Price as of 4/2: $31.80

EPS 2021: $1.82

EPS: 2022: $2.18

5 YEAR P/E Range (5-46)

Current P/E: 18

Cash Flow: $2.46

Comments: Excluding the Oprah jump, the stock is trading where it was in 2016. A below market multiple for a solid business and healthy cash flows.

The market seems to be ignoring that millions of people have put on weight during the pandemic. Too cheap to ignore.

Technical Overview: A move above $41 would very bullish and there is little resistance before the stock reaches $60

Meredith Corp $MDP

Meredith Corporation is a media and marketing services company. The Company operates two business segments: national media and local media. Its national media segment includes national consumer media brands delivered through multiple media platforms, including print magazines, digital and mobile media, brand licensing activities, database-related activities, affinity marketing, and business-to-business marketing products and services.

Price as of 4/2: $30.09

2021: $4.64

2022: $4.19

P/E: 7

Cash Flow $8.68

Return on Equity: 22%

Debt: 768%

Earnings: 5/14

Comments: Trading at the same level as a decade ago. Steady cash flows and high return on equity. Not thrilled with the debt level.

Technical Overview: The stock has had a nice run from the lows. Expect it to consolidate here before moving higher.

Quest Diagnostics: $DGX

Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs).

4/2 Price: $129.44

2021: $11.02

2022: $7.98

P/E Range (10-22)

P/E: 12

Return on Equity: 25%

Comments: The company trades at a discount to the p/e of the S&P 500 yet has a tremendous Return on Equity and stable cash flows. Which is why they announced a stock buyback of $1B.

Earnings: 4/22

Vector Group Ltd. is a holding company. The Company is engaged in the manufacture and sale of cigarettes in the United States through its Liggett Group LLC (Liggett) and Vector Tobacco Inc. (Vector Tobacco) subsidiaries, and the real estate business through its New Valley LLC subsidiary, which is seeking to acquire or invest in additional real estate properties or projects. The Company’s segments include Tobacco, E-Cigarettes and Real Estate.

4/2 Price: $14.12

2021: .89

2022: .87

P/E Range (9-42)

P/E: 15

Yield: 5.7%

Earnings: 5/8

Comments: The stock hasn’t done much since 2014, yet the business is healthy and cash flows are strong. Plus, you get a healthy 5.75% yield while you wait for the stock to appreciate.

Technical Overview: If the stock can trade above $15, there is little resistance until $17-$18

Again, All of my Stock and Investing articles are on a new platform called Substack and I hope you will subscribe to my newsletter there.

To get the last one, visit my Substack Page Here

Thank You

Teacher creates $16K Side Income from Side Hustle During Corona Pandemic

September 29, 2020 by Frugal Prof

Everyone deserves a great side hustle that can let you earn extra Money.

But teachers contribute so much to our communities that I love sharing this inspiring story about a teacher who discovered a side hustle and is now making serious money ($16K) ON THE SIDE!

Joshua had credit card bills and worried about how he would provide for his family. And so many people can relate to that. He had no real estate experience, but he had one important skill- he took Action.

Disclaimer; I believe in transparency and want to disclose this page has links to products that I may earn an affiliate commission for purchases you make. The reader pays nothing.

Watch Joshua’s story below …

Joshua Became a Certified Closing Agent.

One big advantage of becoming a Closing Agent is that you learn a new skill.
You Earn Extra Income, Set your Own Hours, and the Income is Excellent ($75-$200 per appointment).
You can get started with absolutely zero experience. You are hired simply based on your location in proximity to the loan signing.
Next, you can work from home and be your own boss. Owning your own business can allow you to take advantage its many benefits, such as tax write-offs.
• You have the ability to make money almost immediately.
It pays nearly 9X more than driving for Uber. However, it requires you to take a class and invest time and money.
If you can do that, then you can start making up to $200 per signing.

I have been impressed with the Loan Signing System due to success stories like this one.

Learn More about the Loan Signing System here

Relevant Articles:

One of the Better Side Hustle Ideas I see:

You learn a valuable skill.

You earn an excellent fee of $75- $200 per appointment.

The up front costs are pretty small compared to the actual compensation.

Learn More about the Loan Signing Course.

Part time loan signing agents generally do one to three signings per week, – about $300 to $500 dollars extra a week. while full time agents can do 3-8 signings in a day which is about $400 to over $1,000 dollars in a day.

• You can get started with absolutely zero experience. There’s no resume checking prior to a loan signing. You are hired simply based on your location in proximity to the loan signing.

• You can work from home and be your own boss.

• You have the ability to make money almost immediately.

It pays nearly 9X more than driving for Uber.

However, it requires you to take a class and invest time and money.

If you can do that, then you can start making up to $200 per signing.

You are not alone – Once you learn the course material, there is a Private Mentorship Facebook group that is there every step of the way in case you need help or advice.

Anyone can do it.

Ashley needed a way out because she had a daughter to support. She tried other side hustles but nothing had worked. She felt like she let her daughter down.

She wanted to be successful for herself and to support her family.

These are unique times due to the uncertainty of the Corona Virus. And once the health crisis ends, many people will be looking to add extra income or to replace lost income. So, legitimate side hustle ideas are critical right now.

I have been impressed with the Loan Signing System due to success stories like this one.

Ashley began this Side Hustle last month (right when the Corona Virus Pandemic began) and she is now making $6,000 per month and GROWING!

She’s buying a new car. She has less pressure. She has more money. In these uncertain times, HER INCOME went up! Imagine how great that would be. Ashley followed the course materials, took it seriously, and worked hard. So that is what she did and it resulted in $6,000 of extra income as a work from home Mom in one month.

Watch Ashley’s Story Below …

Learn More about the Loan Signing Course.

Relevant Articles:

Riots and Looting Fuel Stock Market Rally – Here’s Why

June 4, 2020 by Frugal Prof

Riots and Looting Fuel Stock Market Rally – Here’s Why

Stocks don’t exist in a vacuum

Institutions like pension funds and insurance companies constantly evaluate the risk of all assets.

Stocks, Bonds, Real Estate and others.

Riots have gotten so severe in the past 5 days, especially in New York that it has altered the risk premium for real estate.

I believe this will be permanent. I’m an optimist. But things have changed for cities. It doesn’t matter if we’re speaking about commercial buildings or residential properties. The costs, risks, and insurance have all gone up.

No one could have imagined the scenes we are witnessing in New York City. Businesses in areas like SoHo and Madison Avenue have been destroyed. They are less attractive now. To continue operating these stores, you will need serious enhanced security measures.

And even with that extra security, it is nearly impossible to combat what we have seen. A security guard cannot fight off 7 looters at one time. Have you seen the footage? And this behavior may not be going away. We have 40M unemployed.

Had you suggested this scenario to a real estate investor, they would have scoffed that the scenario might be plausible for one bad night or two. But no one would believe you that New York city would have 4 consecutive nights of pure riots.

Teens looting every single store in Manhattan non stop for days. It just happened.

The New Normal:

High End Luxury stores could move to appointment only shopping. Where you need an appointment to enter the store. Police have made it clear they will not protect property. So, you have to implement your own protections. And all of that costs money.

Instead of public access at street level, shoppers could be buzzed in by security or given an access code to enter. Street level stores – once premium real estate; is now less attractive.

Many will ask – do we even need a store at all?

Electronic Stores could move to a light imprint model: You can test a phone or laptop in the store. But they have little or no inventory. They send it to you. So a company like Best Buy would need stores at half the size they have now. Could a smaller chain of electronics stores move to this model? Probably not. Again, it is a win for the large companies that have access to capital and can pivot to a changing retail environment.

Looters were targeting drug stores. Because drugstores have pharmacies with Oxycontin and other drugs.

Its very likely pharmacies would move to an online format. You can speak with a pharmacist but they send you the pills.

Amazon recently acquired pillpack to enter this space.

Amazon benefits from these events. And they could deliver drugs within one day in most places. Drugs are a profit center. Many drug stores would close under this scenario. Amazon will be a fierce competitor in this space.

Who needs stores?

Companies will re-evaluate the cost benefit analysis of stores themselves. Do we really need them? How many do we need? How much theft (inventory shrinkage) can we afford? How high will the insurance costs be. Insurance doesn’t cover riots.

Virtual Reality

Although its not here yet, virtual reality is coming. And it is likely to alter the way we shop anyway.

The real reason the stock market is so strong.

Large businesses vs Small Businesses.

Small businesses have had the worst three months ever. Most have been closed due to Corona Virus. Many didn’t qualify or receive PPP funds. Then, the looting began. It has been horrific for small businesses.

It’s been bad for large businesses too but they are insulated due to size, scale, access to capital and geographic diversification.

Small businesses have been hit much harder by each of these waves.

And each time, large public companies gain.

Their small business competition is being destroyed. Literally and figuratively.

Small restaurants and bars are in serious trouble. I keep reading of closings. In Los Angeles, after three months of lockdown, bars and restaurants were allowed to open this past Saturday. Widespread looting occurred. Many stores on Melrose Avenue and in Santa Monica were destroyed. After a three month period with no revenues.

What small business can survive that hardship? Its heartbreaking and devastating.

Are we heading towards an America dominated by chains like Applebees and Chilis? There will be much less diversity of choices in bars and restaurants that’s for sure.

Again, public companies have access to capital. They can negotiate better lease terms. They have flexibility. And they win when the local bars and restaurants close.

Multiply this all over the economy and you see why Large companies listed on stock exchanges are doing well (and some hitting new highs) when the economy is in rough shape and there are 40M unemployed.

Stay safe.

If you enjoyed this article, please subscribe to my e-mail list.

5 Undervalued Stocks “Big Short” Investor Michael Burry is Buying

May 26, 2020 by Frugal Prof

Michael Burry – the famed investor portrayed by Christian Bale in “The Big Short” – added 5 new stocks to his hedge fund portfolio in the first quarter, according to a 13F filing from last week.
While Burry’s largest holding remains Gamestop, $GME he added new stakes in companies that were negatively impacted by the coronavirus pandemic, like Boeing.
Burry’s Scion Asset Management has $387 million in assets under management as of March 31.

*Legal Disclaimer: Information provided herein for educational purposes only.

Ticker: JACK

Sector: Consumer Discretionary

Position Market Value: $10.5 million

Percent of Scion’s Portfolio: 12.21%

Price: $66.49

P/E: 18

Source: SEC 13F filing

Comments; The stock is all the way back at $66, but its possible he bought it when it was in the 20’s.

With $7 per share in cash purchasing the shares in the 20’s would give him a purchase in the neighborhood of 3X cashflow, which is extremely reasonable.

Relevant Articles:

Facebook

Ticker: $FB

Price: $234.91

P/E: 32

Sector: Communications

Position Market Value: $10.0 million

Percent of Scion’s Portfolio: 11.62%

Source: SEC 13F filing

Comments: Doubtful that he bought the shares for the new Shop feature, since it was just announced and has been a Huge catalyst sending the shares higher.

However, it’s possible he saw the CoronaVirus adding new customers or building in new habits for existing customers.

Not an undervalued situation except as it is undervalued relative to growth.

3. Boeing

Ticker: $BA

Sector: Industrials

Position Market Value: $8.95 million

Percent of Scion’s Portfolio: 10.39%

Comments; Many investors had their eye on Boeing. There is the potential for the airline segment to recover and Boeing would be a big beneficiary. Definitely a contrarian play that requires intestinal fortitude due to the risk.

4. The Michael’s Companies

Ticker: $MIK

Sector: Consumer Discretionary

Position Market Value: $5.27 million

Percent of Scion’s Portfolio: 6.11%

Source: SEC 13F filing

Comments; Michael’s is another contrarian play. Hard to resist since with nearly $2 in earnings and a $3 share price, its obviously undervalued.

Relevant Articles:

5. umber The Discovery ChannelTicker: DISCA

Sector: Communications

Position Market Value: $6.8 million

Percent of Scion’s Portfolio: 7.90%

Source: SEC 13F filing

Comments; With a share price of $20 and nearly $3 in earnings, this leaves the shares with a miniscule p/e of only 6.

As with most media companies, the area of concern would be the debt. And discovery still has a lot.

Always a worthwhile exercise to review what exceptional investors are buying.

Massive Unemployment Leads to Massive Stock Market Gains

May 8, 2020 by Frugal Prof

Massive Unemployment Leads to Massive Stock Market Gains

I’ve been doing this a long time. And the last two years have been beyond anything I could ever have conceived. The President spends most of his time promoting trade deals and lower interest rates.

CEO’s loaded up on debt and used 105% of cashflow to buyback shares at all time highs. Stocks achieved excessive valuations. The Fed cut interest rates with the stock market at All Time Highs.

I mentioned a few times never to bet against the President. My view was that he had enough savvy people around him that knew how to inflate (or manipulate) the stock market. That to do so would be dangerous.

And Yet, Most of the mistakes I’ve made in the past two years were because I avoided my own intuition.

All bets are off.

This week has been the theater of the absurd.

Massive job losses of 30M with hardly a downtick all week. The Nasdaq is now a whisper below ALL TIME HIGHS. Investors are giddy. Risk has been defeated.

Relevant Articles:

That which isn’t good for the hive, isn’t good for the bee.

Marcus Aurelias, Meditations

Negative Interest Rate Policy: The Fed is flirting with Negative Interest Rate policy, a radical failed experiment everywhere it has been tried.

Japan’s stock market is flat for the last 30 years. Their economy is irrelevant. Their government owns their economy via ETF purchases. Most international mutual funds and indexes do not even include Japan. It is irrelevant.

Apple is up 39.22% for the month. The company has no guidance. Couldn’t provide earnings visibility on the recent earnings call. They issued bonds this week to buy back more stock. Buybacks are the cotton candy for today’s investors.

Warren Buffett in 1962 and Benjamin Graham in 1947

Warren Buffett: Oddly enough, we began this week with warnings from two very influential investors.

Warren Buffett announced he had sold his entire airline stake on the premise that he wasn’t sure if air travel would return in two or three years.

That’s the most bearish assessment anyone has heard from Mr. Buffett in quite some time. But, few investors or Algorithmic programs paid much attention to him these days.

Zell: Sam Zell mentioned this week that he was quite cautious about the future.

“Too many people are anticipating a kind of V-like recovery,” said in an interview with Bloomberg Television.

“We’re all going to be permanently scarred by having lived through this.”

Just as the depression left behind a generation that couldn’t shake the experience of mass unemployment, hunger and desperation, the burdens this crisis has forced on society may be similarly hard to forget.

Zell, 78, said it won’t be easy for people to live as they did before the “extraordinary shock” of the pandemic.

And so today the market continues its march towards new highs. Investors are cheered on by administration talking heads promising a V like recovery. It is an election year, so what would you expect them to say?

The money printing is unlimited as are the stock gains.

Buffett had this to say about the Fed Actions:

“We’re doing things that we really don’t know the ultimate outcome to,” the 89-year-old investing legend said at the virtual meeting. “I think in general they’re the right thing, but I don’t think they’re without consequences, and I think they could be of extreme consequences if pushed far enough. But there would be kind of extreme consequences if we didn’t do it as well.”

What about the 30 Million unemployed? They stay on the government statistics for 6 months and then they are removed. When 12 Million find some sort of new employment (probably less well paying), the talking heads on CNBC and the government economists will gleefully tell you that the job market is “strong”.

It never ends.

Be careful friends.

Relevant Articles:

Ashley’s Side Hustle Brings in $6,000 Cash in 30 Days Amazing Success Story

April 15, 2020 by Frugal Prof

Ashley’s Side Hustle Brings in $6,000 Cash in 30 Days Amazing Success Story

This story is so inspiring that I had to share it. Even if you’re not looking for a side hustle or extra income, this story is so inspiring for these challenging times.

Ashley needed a way out because she had a daughter to support. She tried other side hustles but nothing had worked. She felt like she let her daughter down.

She wanted to be successful for herself and to support her family.

I have been impressed with the Loan Signing System due to success stories like this one.

Ashley began this Side Hustle last month (right when the Corona Virus Pandemic began) and she is now making $6,000 per month and GROWING!

She’s buying a new car. She has less pressure. She has more money. In these uncertain times, HER INCOME went up! Imagine how great that would be. Ashley followed the course materials, took it seriously, and worked hard. So that is what she did and it resulted in $6,000 of extra income as a work from home Mom in one month.

Watch Ashley’s Story Below …

Disclaimer; I believe in transparency and want to disclose this page has links to products that I may earn an affiliate commission for purchases you make. The reader pays nothing.

Ashley Became a Certified Closing Agent.

One big advantage of becoming a Closing Agent is that you learn a new skill.
You Earn Extra Income, Set your Own Hours, and the Income is Excellent ($75-$200 per appointment).
You can get started with absolutely zero experience. You are hired simply based on your location in proximity to the loan signing.
Next, you can work from home and be your own boss. Owning your own business can allow you to take advantage its many benefits, such as tax write-offs.
• You have the ability to make money almost immediately.
It pays nearly 9X more than driving for Uber. However, it requires you to take a class and invest time and money.
If you can do that, then you can start making up to $200 per signing.

Learn More about the Loan Signing System here

Relevant Articles:

One of the Better Side Hustle Ideas I see:

You learn a valuable skill.

You earn an excellent fee of $75- $200 per appointment.

The up front costs are pretty small compared to the actual compensation.

Learn More about the Loan Signing Course.

• You can get started with absolutely zero experience. There’s no resume checking prior to a loan signing. You are hired simply based on your location in proximity to the loan signing.

• You can work from home and be your own boss.

• You have the ability to make money almost immediately.

It pays nearly 9X more than driving for Uber.

However, it requires you to take a class and invest time and money.

If you can do that, then you can start making up to $200 per signing.

You are not alone – Once you learn the course material, there is a Private Mentorship Facebook group that is there every step of the way in case you need help or advice.

Anyone can do it.

Stay safe friends

Relevant Articles:

Meth Dealers Deny Quality Control has Slipped Due To Corona Virus

March 22, 2020 by Frugal Prof

Its a world turned upside down for global supply chains. And international drug cartels are not immune to these issues. As rumors spread of meth being watered down by sugar packets, drug dealers hire expensive PR firms and take to social media to quell the rumors.

‘Its not true. Our stuff is still as good as ever.” said Drug Dealer Julio Marsalles

Of course, its hard to know when buying an illegal black market item such as Meth, so maybe stick to marijuana or alcohol.

This is one of the issues our leaders have ignored the past decade as the illegal drug trade has followed corporate America to cheaper, less expensive locales.

But what about the home grown drug ingredient manufacturers? Who’s looking out for them?

It’s a complicated issue and one you can bet we’ll be hearing more about in the aftermath of this tumultuous time.

Stay safe, friends

Relevant Articles: