Ben Graham’s North American Large-Cap Value Stock Picks

Posted on 01/11/2010


Based on the Benjamin Graham large-cap value quantitative stock screen that we introduced in a previous post, here is a list of companies trading on U.S. and Canadian stock exchanges that meet our investment criteria:

Allegheny Energy Inc (AYE) is a diversified utility holding company. The Company is an integrated energy business that owns and operates electric generation facilities and delivers electric services to customers in Pennsylvania, West Virginia, Maryland and Virginia.
Archer Daniels Midland Co (ADM) is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. It is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities and is a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.
Atco Ltd (ACO.X) operates in four segments: Utilities, Energy, Structures and Logistics and Corporate and Other. The Utilities segment includes the regulated distribution of natural gas  and the regulated distribution and transmission of electric energy. The Energy segment includes the non-regulated supply of electricity and cogeneration steam. The Structures and Logistics segment includes the manufacture, sale and lease of transportable workforce housing and space rentals products. The Corporate and Other Segment includes the development, operation and support of information systems and technologies, and the provision of billing services, payment processing, credit, collection and call centre services.
Constellation Energy Group Inc (CEG) develops, owns, owns interests in, and operates electric generation facilities located in various regions of the United States. Its merchant energy business also focuses on serving the energy and capacity requirements (load-serving) of, and providing other energy products and risk management services for, various customers.
ENSCO plc (ESV) is an offshore contract drilling company. As of February 15, 2010, Ensco’s offshore rig fleet included 42 jackup rigs, four ultra-deepwater semisubmersible rigs and one barge rig. Additionally, it had four ultra-deepwater semisubmersible rigs under construction.
Entergy Corp (ETR) is an integrated energy company engaged primarily in electric power production and retail electric distribution operations. It owns and operates power plants with approximately 30,000 megawatt of aggregate electric generating capacity. The Company is also a nuclear power generator in the United States.
Inmet Mining Corp (TSE:IMN) is a Canadian-based global mining company that produces copper, zinc and gold. The Company has operations in Turkey, Spain, Finland, Canada, Papua New Guinea and a copper development project in Panama. Cayeli Bakir Isletmeleri A.S. is a wholly owned subsidiary of Inmet Mining Corporation. Its main asset is the Cayeli copper and zinc mine. The Cayeli mine is located in the province of Rize near the Black Sea coast of northeastern Turkey.
L-3 Communications Holdings Inc (LLL) is a prime system contractor in aircraft modernization and maintenance, command, control, communications, intelligence, surveillance and reconnaissance systems, and government services. L-3 is also a provider of technology products, subsystems and systems.
National Oilwell Varco Inc (NOV) is provider of equipment and components used in oil and gas drilling and production operations, oilfield services and supply chain integration services to the upstream oil and gas industry. The Company operates through three business segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services.
Teck Resources Limited (TCK) is engaged in mining and related activities, including exploration, development, processing, smelting and refining. Its major products are metallurgical coal, copper and zinc. The Company also produces precious metals, lead, molybdenum, electrical power, fertilizers and various specialty metals. Metal products are sold as refined metals or concentrates. It also owns an interest in certain oil sands leases, and has a partnership interest in an oil sands development project.
Tidewater Inc (TDW) provides offshore supply vessels and marine support services to the offshore energy industry through the operation of offshore marine service vessels. The Company provides services in support of all phases of offshore exploration, field development and production, including towing of (and anchor handling for) mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover and production activities, offshore construction and seismic support, and a variety of specialized services, such as pipe and cable laying.

As can be seen from the above, most of the companies suggested by the stock screen operate in one of three industries: utilities; oil services; and mining.  Therefore, the low valuations of these companies could imply that investors are particularly cautious about these sectors at present.  Invest at your own risk.