David J Hoare MSA

I spent 12 years as a Certified Public Accountant. I have over 25 years of practice in accounting and consulting. I've held positions as a controller in closely held operations, board member for non-profits and as the primary contact in governmental audits (IRS and state level). My education includes both a bachelors and masters degree in accounting. I've prepared over 1,000 business tax returns and hundreds of individual returns. I care about success for the people I work with in business.

Railroad Stocks – Analysis 02/15/2020

In addition, the price to book ratios are also higher than last quarter.  The key question for me and this fund is figuring out if there is value in any of the stocks.  To do this, I must fill out a table of various preferred ratios and then explain them in a write-up.  This way the reader will understand my reasoning as I write about it further

Railroad Fund – Status on 01/31/2020

During the last 30 days, the fund held 13.52375 shares (original investment of $2,500) and sold them on 01/17/2020 at 9:40 AM when the price in the market hit the target under the value investment principle at $207.17.  The value investing principle (simply stated) required the share price to hit the prior peak price which was $206.46.  However, on that morning, the share price instantly jumped past $206.46 to $207.17 triggering the sale of the stock.  The gain on the sale net of costs of $1.00 per share to buy and $1.00 per share to sell was $288.19.  The stock was purchased on 10/23/19 at $183.86.

Retainage in Construction – Purpose, Accounting and Law

A tool used by a developer, contractor or homeowner to keep the primary party committed to getting the project completed is called ‘retainage’. In effect, retainage means to withhold a small percentage of all payments made until all the work is done. The idea is prevent the contractor, subcontractor or vendor from earning their respective profit until they have completed their agreed upon service. 

Union Pacific – Buy/Sell Model

Union Pacific’s stock carries the highest price to book ratio among the six Class I Railways. It is about a 1.43 times factor over the next best price to book ratio of CSX at 4.73. Strong price to book ratio investments infrequently have deep or extended price depressions. Therefore, an investor must be patient and wait for opportunities to buy.

Canadian Pacific Railroad – Sold Stock at $241.47

Today is November 15, 2019 and Canadian Pacific Railroad recovered in accordance with my railroad fund investment model to $241.47 per share. The value investing model automatically sold at $241.47 and the price per share continued to climb to $241.86 when the market closed at 4 PM.  This sale generated a 9.31% return on the investment over 27 days. Annualized return is > 100%.

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