Money Manager Bobby Edgerton of Capital Investment Companies seeks the world’s best companies when they are out of favor, and he thinks FedEx Corporation (NYSE:FDX) is one of them.
“I am a contrarian first and foremost, because when a stock goes down, that’s probably the biggest tip off of it getting cheap, which is what happened with FedEx at $65 a share two or three years ago. It was selling below what their assets were across the world,” Edgerton says.
Bobby Edgerton
Edgerton says the essence of the stock market is that each company at all times has two values: the value the market is placing on a company at a certain point, and the actual worth of a company.
“There are times like right now when FedEx was being valued at $44 billion. I just look at the land, building, property and equipment, and that’s $44 billion. So the stock market is saying that the entire FedEx Corporation is worth what they paid for their properties, trucks and planes owned. That is what triggers my buy: a stock that’s worth a lot more than the market’s valuing the company at.”
FedEx Corporation (FDX) on Track for Improved Return on Capital and Free Cash Flow
August 06, 2015
Wal-Mart Stores, Inc. (WMT) Undervalued at $180 Billion
November 18, 2015
Citigroup Inc (NYSE:C) Still Undervalued by the Market
June 02, 2017
More Governance Pressures – Teamsters Push for CEO/Chairman Split at FEDEX
August 31, 2009
