Clearly, we like the workhorse stock. The price target of $24-$26 based on a regression-driven analysis is a good average value. We also value the stock at 5.4% above the current $21.00 per share price.
We now have a range of $22.80-$26 for a price target of $15.52 or 24.6% above today’s $21.99 price.

What is the reason why we like workhorse?

As one of the largest holdings of the Contrarian Income Report portfolio, we are extremely fond of the stock. It’s trading at a good price based on many different approaches for evaluating the overall risk. To know the story behind the stock and how we value it, click here to read our workhorse workhorse valuation.

Additional disclosure:

  • Most positions have minimum amount requirements as per SEC rules. This means you should only invest in the positions that have specific minimums as per SEC rules and requirements. However, workhorse has a $10 million minimum which allows a complete portfolio position.
  • This article is intended for educational purposes only. It should not be considered a solicitation to buy or sell securities.
  • I have only recently initiated a position in the workhorse stock, buying a total of 8,201 shares. I am also considering a purchase of another 739 shares of workhorse in the next few weeks. Workhorse is one of our largest holdings and the stock may be used to initiate positions.
  • If you liked this article and want to read more articles like this, please click the follow button above to subscribe to the Seeking Alpha Premium Marketplace. I write about value investing andielding bonds. I also manage a leveraged portfolio of up to 10 high yield bonds. Please check out the results from working on my leveraged portfolio here for more details.
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I wrote this article myself, and it expresses my own opinions. And i am not receiving compensation for it (other than from Seeking Alpha). And i have no business relationship with any company whose stock is mentioned in this article.
iShares Dow Jones US Basic Materials ETF (NYSEARCA:DGB) is an exchange traded fund based on the Dow Jones U.S. Basic Materials Index. DGB is an ETF of the workhorse companies that produce basic materials for industry as well as the stock market. The workhorse companies are represented by STWD, EPE, EPE, O, DFE, O, EPD, ENB, CBOT, SXL, EEP, NWL, OGA, and DDG. DGB tracks the Dow Jones U.S. Basic Materials Index.

The price of DGB was at $36.83 as of yesterday’s close.

Additional disclosure:

  • I have no financial relationship with any company whose stock is mentioned in this article.
  • I have a portfolio of the workhorse stocks that have historically been well-known dividend stock for long time investors such as EPE, EPE, EPE, O, EEP, O, DDG, OGA, OGA, SXL, EPP, EPD, ENB, CBOT, SXL, ENB, EEP, NWL, EPL, and NWL.


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