NYSE:BGC
$28.49
(3/19 4:00PM)
0.0%
| Open | $28.45 |
Mkt Cap | $1.5 Billion |
| High | $28.84 |
52Wk High | $42.73 |
| Low | $27.81 |
52Wk Low | $18.93 |
| Volume | 1.5 Million |
Avg Vol 10D | 1.1 Million |
A Word Of Caution
General Cable Corporation (BGC) has experienced a very significant loss in market value recently. Clearly this drop in price will have an impact on the valuation but the recent events that caused the drop may have not been fully factored into our analysis yet. When a stock loses value very quickly it could be a sign that there is a fear of bankruptcy.
Please take a look at the RazorWire feed on the right hand side of the page. If General Cable Cp has been mentioned on business television or influential blogs recently a portion of that story should be displayed. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect significant factors surrounding this company.
Therefore, (and as always), check additional sources and available information regarding BGC before making an investment decision.
BGC Revenue
As a value investing shop, we are interested in seeing how BGC's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.65x and the low end of the range at 0.23x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for BGC of 0.32x is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $26.70, BGC is 28% below where we would expect to see it. This will beneficially factor into our final analysis of BGC as it is not often that this stock sinks to these levels.
BGC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. BGC is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BGC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 17.96 and a 5.67 low over the same period.
Now that BGC’s current price is $26.70 and its Price to Cash Earnings ratio is 6.48, we are very positive on its outlook from the cash earnings perspective. In fact, BGC is now trading a full 46% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why BGC has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
BGC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
It's Been a Month or More Since Fox Business Discussed General Cable Corporation
After a month of relative quiet from BGC, they have appeared back in the news.
We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on BGC because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Cable Corporation has actually sunk a bit in comparison to the others.
“… But the challenge was to stick to your knitting and we doubled up on some stocks that we saw selling at unreasonably low values like GENERAL CABLE, a foster wheeler, mostly ... …”
Blue Chips and BGC on Squawk On The Street
As leading economic indicators, blue chip stocks often receive a lot of attention from the media. Recently, Squawk On The Street talked about BGC in their discussion of economic bellwethers.
The Motley Fool CAPS data suggests that investors believe General Cable Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BGC. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BGC has been less covered in the news compared to the rest of our universe of stocks.
“… GENERAL CABLE, foster wheeler, the more cyclical area are the obvious ones. > > are you still putting money in those and if not which names? …”
General Cable Corporation (BGC) Discussed on CNBC's Street Signs
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
That presented themselves with the drastic downturn, so some of our existing holdings that we had confidence in for the long term we doubled up at pretty low >> can you give some examples of where you doubled up and where you are right now? >> a company like GENERAL CABLE that was selling at two or three times what they thought they could earn. This is back in march. Foster wheeler was the same type of thing. So we still own them now because we still, you know, they're still leveraged to a global economic turnaround and they're still not cheap on earnings. >> looking -- you're up 38% this year and were down about the same in 2008. >> at your top five holdings, three of them are up significantly, two of them are down, but one of them really stands out and it was a name we had not heard of before. Bioscrip. Up 262%. Is that a really small cap or is that a story that you think is going to last and you'd recommend now? >> well, bioscript is a pharmaceutical company. They sell pharmaceuticals to individuals that have hepatitis c or hiv and their business has been doing very well. New management team that's come in. Operating margins have improved. It's a small cap. It's a microcap and a top five holding of ours. We have a long-term perspective so we continue to hold we like the long-term prospects. It is going to remain one of our larger holding going forward. >> do you believe that this rally that we've seen, and i'm
“… ike GENERAL CABLE that was selling at two or three times what they thought they could earn. This is back in march. Foster wheeler was the same type of thing. So we still own them now because we still, you know, they're still leveraged to a global economic turnaround and they're still not cheap on earnings. >> looking -- you're up 38% this year and were down about the same in 2008. >> at your top five holdings, three of them are up significantly, two of them are down, but one of them really stands out and it was a name we had not heard of before. Bioscrip. Up 262%. Is that a really small cap or is that a story that you think is going to last and you'd recommend now? >> well, bioscript is a pharmaceutical company. They sell pharmaceuticals to individuals that have hepatitis c or hiv and their business has been doing very well. New management team that's come in. Operating margins have improved. It's a small cap. It's a microcap and a top five holding of ours. We have a long-term perspective so we continue to hold we like the long-term prospects. It is going to remain one of our larger holding going forward. >> do you believe that this rally that we've seen, and i'm …”
General Cable Corporation (BGC) Discussed on Fox Business's The Opening Bell on Fox Business
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
States reporting second quarter profits that beat wall street estimates that it has been cutting costs with higher days higher monthly cable bills. Number three, led GENERAL CABLE. The stock is down by more than 6% it is the biggest maker of communications company. The profits mr. Wall street expectations and reactor by -- investors are reacting you know, this for the ticker symbol, the stock is down 12% it is the owner of chile's gross anbar this sales fell in fourth quarter and the company is saying they will continue
“… s company. The profits mr. Wall street expectations and reactor by -- investors are reacting you know, this for the ticker symbol, the stock is down 12% it is the owner of chile's gross anbar this sales fell in fourth quarter and the company is saying they will continue …”
General Cable Corporation (BGC) Discussed on Fox Business's The Opening Bell on Fox Business
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
Problems. Alexis: only about 15 seconds. What does it do for you? >> well, for us we have the electronics, so everything that geithner talked about we're ready for. So bgc partners it's a great-- could possibly be superb for us. Alexis: you're having quite a year. >> well,-- government bonds are a big thing and we do-- >> he's the only executive on
“… ite a year. >> well,-- government bonds are a big thing and we do-- >> he's the only executive on …”
General Cable Corporation (BGC) Discussed on Fox Business's Money For Breakfast
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
Bank of england keeping rates unchanged at 1/2%. Back to you. Alexis: thank you very much. I'm joined by david buik a partner at bgc partners and bill dale is also joining me. What kind of signal does it send that in essence we have kept rates to the lowest level we are going to keep them and
“… st level we are going to keep them and …”
General Cable Corporation (BGC) Discussed on Fox Business's Money For Breakfast
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
Watch the images -- watch the images on television. I'm joined by david buik of bgc partners and colin millville of home equity ownership services. And the impact also being felt down at wall street at the new york stock exchange that's where
“… Watch the images -- watch the images on television. I'm joined by david buik of bgc partners and colin millville of home equity ownership services. And the impact also being felt down at wall street at the new york stock exchange that's where …”
General Cable Corporation (BGC) Discussed on Fox Business's Money For Breakfast
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
About the international reaction to what happened yesterday on the hill and what's expected to happen on the hill today. Joining me, jeffrey hogan from bgc partners, charles payne in our studio, and also join canning us is matt mccall, president of penn financial. Charles, you had an opportunity to listen to the two members of congress about the kinds of questions they want answered
“… inancial. Charles, you had an opportunity to listen to the two members of congress about the kinds of questions they want answered …”
General Cable Corporation (BGC) Discussed on Fox Business's Money For Breakfast
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
But we're in control. There's no need to do anything immediately right now. Ashley: all right, jeffrey hogan, patience is the name of the game. Jeffrey hogan of bgc partners also bill dale president and ceo thank you very much. Let's get straight back to connell for more breaking news. Connell: out of wal-mart their sales figures are out.
“… connell for more breaking news. Connell: out of wal-mart their sales figures are out. …”
General Cable Corporation (BGC) Discussed on Fox Business's Money For Breakfast
General Cable Corporation is in the news. Find out how this impacts BGC trading on Ockham Research.
Down to 1% from 1 1/2%. What does this mean to investors? What does it mean to the markets? I'm joined by jeffrey hogan strategist for bgc partners. We also have president and ceo of curex currency. Gentlemen, thank you for being
“… Down to 1% from 1 1/2%. What does this mean to investors? What does it mean to the markets? I'm joined by jeffrey hogan strategist for bgc partners. We also have president and ceo of curex currency. Gentlemen, thank you for being …”