Creative accounting is no match for Epic Advisors’ model Bottom Up Analysis. This portfolio takes away the unbridled optimism offered by creative accounting and looks deeper into the financial statements of each company to assess its value. Then, using a proprietary system, Bottom Up Analysis determines the best price at which to buy the company’s stock, waits for the market inefficiency and buys.
Merck & Co Inc (NYSE:MRK) Merck is known around the globe as a provider of healthcare solutions—from pharmaceuticals to consumer products. Their balance sheet shows increasing stockholder equity and the price to earnings ratio is relatively low although so are the forecasted earnings per share—though the EPS of some competitors is even lower. The stock hit a ten-year low in 2005 and a 14-year low in 2009. Since then it has been struggling to work its way back up to its year 2000 highs. Recently Merck was given the Presidential Green Chemistry Challenge Award, which is presented by the Environmental Protection Agency (EPA). While Merck’s position in the pharmaceutical seems consistently secure, the green award shows that the company is willing to find alternative solutions in order to account for consumer concerns.
Crocs Inc (NASDAQ:CROX) Love them or hate them, Crocs Inc. has created a popular and thriving line of footwear. With diverse style and color offerings, these vinyl shoes are the darlings of beachgoers, casual shoppers and gardeners everywhere. Recently, the company has expanded into more fashion-forward styles that could work wonders in furthering its reach. Their first quarter 2010 revenue showed a 23.7% increase, which may indicate that these shoes are not falling out of favor with consumers any time soon. Their earnings per share, which is very low, does seem to be increasing in step with the popularity of their brand.