Valuation wise is worried and has been exploring various avenues to protect what can be when one mad man will not entertain a discussion. That starts with dividend certainty.
We assume that a number of top-quality listed companies will operate at a profit, barring a nightmarish scenario.
Using AlphaValue’s company finder, it is a few clicks away to select stocks with top-notch business models, i.e. likely to generate decent FCFs come what may and to start the selection process with businesses with a net cash position or hardly any debt.
An ounce of common sense helps a final selection. The key point is to forget about yield.
We merely focused on the ability to pay even at the cost of a very low return.
None of the very large caps that emerge should surprise investors in quality stocks. It would take a geopolitical earthquake to disturb their payment over the next 2 or 3 years.
Stocks are ranked by declining market cap. Smaller firms are by definition a higher risk proposition. Still there are a few discoveries on the view that we apply the same filters in the most agnostic way.
Full list in XLS on request: research@alphavalue.eu
Full list in XLS on request: research@alphavalue.eu