No. of Recommendations: 12
This update is to Kenneth Lee’s Benchmark Investing picks based on the latest Monday’s data release. Currently, two Dow30 stocks is trading below 
their benchmark price target. The first is DWDP, DowDuPont, which is -11% below its downslide price target. And the other is WBA, Walgreens Boots,
which is -2% below its downside price target. If you are interested in following along with this methodology against a broader range of stocks 
outside of the Dow30, my picks are posted in the Fool CAPS on a regular basis.

Market Valuation (Dow 30): 
The market remains very overvalued currently, at least according to the BI method of valuation.
Downside: -44%
Upside:   -15%

Long Buy Rules: 
I am using the following TTD rules for Long position considerations:
1. Year-over-Year EPS growth must > 10%, which are the next 4Q / current quarter + previous 3 quarters earnings results
2. VL 3-5 Year price appreciation > average price appreciation of the market
3. When calculating ROE and BV figures, ignore years when are negative, but must have at least 7+ years of data to be 
   included in final consideration
4. Avoid erratic ROE ratios, that is where they are > 2std deviations = Curr ROE > (10 Year Avg + 2 * Std Dev)
5. ROE and BV current figures must be updated by VL to be considered.

Summary of Results

	VL	        Current	ROE/BV	Down	Up     %<10Y   %<10Y	EPS	Div    3-5Y L 3-5Y H VL 3-5Y   ROE	
Ticker	Date	        Price	Updated	Price	Price	Down	Down4Qs	Delta   Yield   VL $	VL $	% Chg	<2STD	Name
CAT	17-Aug-18	139	TRUE	120	199	15%	201%	18%	 2.5 	190	280	74%	FALSE	Caterpillar Inc.
JNJ	17-Aug-18	135	TRUE	94	121	44%	68%	43%	 2.8 	170	210	40%	FALSE	Johnson & Johnson
MCD	24-Aug-18	162	FALSE					8%	 2.6 	180	220	22%	TRUE	McDonald's Corp.
CVX	31-Aug-18	118	TRUE	66	91	79%	290%	58%	 3.8 	125	160	21%	FALSE	Chevron Corp.
XOM	31-Aug-18	80.17	TRUE	49	64	64%	113%	42%	 4.1 	100	125	39%	FALSE	Exxon Mobil Corp.
BA	7-Sep-18	343	FALSE					20%	 2.2 	390	475	24%	TRUE	Boeing
TRV	7-Sep-18	132	TRUE	83	109	58%	101%	50%	 2.3 	175	215	48%	FALSE	Travelers Cos.
UNH	7-Sep-18	268	TRUE	140	213	91%	170%	18%	 1.3 	265	325	9%	TRUE	UnitedHealth Group
VZ	15-Jun-18	54.37	TRUE	34	45	61%		10%	 4.3 	80	95	59%	FALSE	Verizon Communic.
CSCO	15-Jun-18	47.77	TRUE	27	39	80%	86%	10%	 2.8 	50	65	21%	TRUE	Cisco Systems
WBA	15-Jun-18	68.56	TRUE	85	126	-20%	-7%	9%	 2.6 	90	125	58%	TRUE	Walgreens Boots
HD	22-Jun-18	201	FALSE				165%	11%	 2.2 	215	260	19%	TRUE	Home Depot
PG	22-Jun-18	82.95	FALSE	67	87	23%	36%	7%	 3.5 	105	130	40%	TRUE	Procter & Gamble
INTC	29-Jun-18	48.43	TRUE	39	59	24%	60%	3%	 2.5 	80	95	81%	FALSE	Intel Corp.
AAPL	29-Jun-18	228	TRUE	95	204	140%	152%	14%	 1.3 	235	320	23%	FALSE	Apple Inc.
IBM	29-Jun-18	146	TRUE	114	154	29%	28%	-4%	 4.4 	170	205	28%	FALSE	Int'l Business Mach.
DWDP	6-Jul-18	70.13	TRUE	79	91	-11%		41%	 2.3 	75	105	28%	TRUE	DowDuPont Inc.
MRK	6-Jul-18	68.59	TRUE	42	59	65%	70%	3%	 2.8 	70	85	13%	FALSE	Merck & Co.
PFE	6-Jul-18	41.52	TRUE	35	47	18%	78%	14%	 3.3 	45	55	20%	TRUE	Pfizer Inc.
MMM	13-Jul-18	211	TRUE	148	207	43%	78%	15%	 2.6 	255	315	35%	FALSE	3M Company
UTX	13-Jul-18	132	TRUE	89	122	48%	63%	5%	 2.1 	150	180	24%	FALSE	United Technologies
GS	13-Jul-18	238	TRUE	185	307	29%	72%	2%	 1.3 	305	375	42%	FALSE	Goldman Sachs
KO	20-Jul-18	44.57	TRUE	35	44	26%	40%	12%	 3.6 	50	60	22%	TRUE	Coca-Cola
WMT	27-Jul-18	95.86	TRUE	60	80	60%	76%	4%	 2.2 	115	140	32%	FALSE	Walmart Inc.
NKE	27-Jul-18	82.2	TRUE	47	67	75%	70%	15%	 1.0 	85	105	16%	TRUE	NIKE Inc. 'B'
DIS	3-Aug-18	112	TRUE	97	135	15%	25%	3%	 1.5 	150	180	47%	FALSE	Disney (Walt)
JPM	10-Aug-18	115	TRUE	80	122	44%	88%	12%	 2.8 	105	140	6%	FALSE	JPMorgan Chase
AXP	10-Aug-18	106	TRUE	82	122	29%	58%	12%	 1.5 	115	140	20%	FALSE	Amer. Express
V	10-Aug-18	147	TRUE	96	139	53%	95%	24%	 0.7 	155	185	15%	FALSE	Visa Inc.
Dow30		        25,965	       14,472  21,155	                         2.5  29,936  37,395			Dow Jones Industrial Average
Appreciation Potential		  	 -44%	  -15%				         15%     44%     31%


AllTooFoolish's CAPS Portfolio: 
If you are interested in seeing this method applied to a broader universe of stocks, follow my actively managed Benchmark Investing portfolio 
using Fool CAPS. I have been using this methodology exclusively in Fool.com for many years with great success. In the Fool CAPS you will find 
my current portfolio and can see my most recent activities.

Notable activity in this quarter’s CAPS portfolio: 
HCP, July 6, sold all positions
RRC, Aug 3, sold all positions
COG, Aug 31, started new position, BI downside price -30%
KMI, Aug 31, added position
NUE, Sep 7, started new position, BII downside price -29%
AYI, Sep 17, sold all positions because not listed in pool any longer

My overall Fool CAPS Rating at the time of this post was 72
Score: 1,570 (76%)
Accuracy: 48% (51%)


Disclosures and Useful Terms
VL Date is the date of the last summary report update from Valueline as indicated in the post’s subject line.
All data sources from Valueline Dow30 reports made publicly available on the VL website. https://research.valueline.com/research#list=dow30&sec=l...

Current Price is the closing price of the stock as reported by VL, which is usually a few days behind the date 
of the time period mentioned in the posting subject line.

ROE/BV Updated is an indication if the stock’s BV and ROE have been updated through the end of the Benchmark evaluation time frame.

10Yr Down is the 10 year downside price. The company must have at least 7 years of non-negative ROE data to qualify.

10Yr Down4Qs is the 10 year downside price averaged over the previous 4 quarter’s valuation price.

10Yr Up is the 10 year upside price. The company must have at least 7 years of non-negative ROE data to qualify.

Both upside and downside are calculated using method outlined in TTD book.
Also a discussion of calculating the upside and downside can be found here:
http://boards.fool.com/Message.asp?mid=20916205&sort=who......

%<10Y Downside is the current price divided by the 10 Yr downside expressed as a percentage.

EPS Future Delta is the projected growth in EPS for the next 4 quarters versus the last four reported quarters.
I use the latest EPS data from the VL spreadsheet which are updated as soon as new earnings are reported.

Div Yield is the current % dividend payout ratio per share.

3-5 Y Low/Hi Price Est. is the downside/upside price estimate which is calculated using the projections of Book Value 
and ROE as discussed in TTD.

Min VL Price Appreciation is the expected change in price from current price to low end VL projected 3-5 year
appreciation price.

ROE >2STD is part of a margin of safety consideration, which is briefly discussed in TTD on pg 70-71. 

I compare the current year's ROE versus the last 10 years of ROE data. If the current ROE is greater than average (10 Yr
ROE) + (2 * stdev(10 Yr ROE)), 
than this column is TRUE, else it is FALSE. This tells me that the stock's ROE is much higher than its historic average and should therefore be avoided.
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