Today, November 30, 2021, the market saw a decline of 650 points with the DOW Jones Industrial Average. This pushed the price of Huntington Ingalls Industries lower by 2.32% below the predetermined intrinsic value of $185. At 1:15 PM, the price dipped to the buy point as set by this site's Value Investment Fund for this particular potential investment in the Military Contractors Pool of investments. The Fund purchased 112.9943 shares at $176 each (paid $177 including the $1 per share transaction fee). Total invested capital equals $20,000.
Currently, there are 39 potential investments among six pools. Every single one, with the exception of Huntington Ingalls Industries, is selling at or near their respective historical highs. Thus, opportunities to buy low are non-existent in this current market. Having an opportunity such as this is a welcomed relief. The sell point for this stock is preset for $251 per share netting $73 per share gain after fees (another $1 per share fee at the sale of the stock). It is expected that it will take approximately six quarters to recover to this preset market recovery price point.
The largest subsidiary of Huntington Ingalls Industries is their Newport News Shipbuilding division. They are the sole builder of the United States Navy's aircraft carriers. Newport News Shipbuilding has been in business for over 140 years. Huntington Ingalls Industries has three distinct segments of operations. In addition to Newport News Shipbuilding, Huntington Ingalls Industries has its Ingalls division which builds non-nuclear combatant vessels including Coast Guard Cutters. A third division is their Technical Solutions segment which provides intelligence services to the Navy. With 44,000 employees and a backlog of $50 Billion of work, Huntington Ingalls Industries is an excellent inclusion in any value investing portfolio. With this site's Value Investment Fund, this particular company is included in the Military Contractor's Pool of investments.
The current market price as of November 20, 2021 is around $185 share. With 40.6 Million shares in the market, its market value is around $7.5 Billion. Therefore, this company is considered a mid-cap investment. However, the company consistently generates increasing amounts of revenue and outstanding profits. For investors, it also pays excellent dividends that often exceed a 2.5% dividend yield. The risk associated with a deep decline with the stock's price is practically non-existent and more importantly, even if one occurred, the likelihood it will stay depressed for more than two years is remote. Even though this company falls within the mid-capitalization group of investments, it behaves like a large-cap. Simply stated, if a value investor can snap up shares at a good price, odds are, the investment will provide superior returns when the stock's price returns to a favorable market price. The questions are now: 'What is Huntington Ingalls Industries, Inc.'s intrinsic value, value investing buy price and the market recovery price for the purpose of value investing?'.
Today, the Value Investment Fund sold an options contract (PUTS) for 116.9591 shares of Huntington Ingalls Industries at $5.90 per share netting $4.90 per share. The strike price is $170 per share which is 4% lower than the buy price as set for this particular member of the Military Contractors Pool. The intrinsic value of Huntington Ingalls Industries is currently calculated at $185 per share. Current market price today, January 7, 2022, is $192 per share.
Today, 03/07/22, at 10:28 AM, the market price for Huntington Ingalls Industries reached my preset sales price of $226 per share netting the Value Investment Fund $225 per share after transaction fees. Initial investment on 11/30/2021 was $20,000 including transaction fees (Purchased HII). Total number of shares purchased and sold was 112.9943 shares. Capital gain from this transaction was $5,423.72. During this 98 day holding period, the Fund earned $133.33 in dividends. Total earnings over 98 days were $5,557.05 for an absolute return on the $20,000 investment of 27.785%. Annualized, this equals 103.48%.
Today is March 17, 2022. If you are value investor, you need to watch Huntington Ingalls Industries market price closely. Get ready to buy.
Back in November 2021, this site's Value Investment Fund purchased a $20,000 position in this company. On December 12th, the facilitator posted an article detailing the intrinsic value, buy price and market conditions. In February, the Fund updated the sell point due to the quality of financial performance during the fourth quarter of 2021. Last week, the Fund sold its position in Huntington Ingalls Industries when there was a sudden upward spike with the market price. It turned out as an excellent value investment; one that any value investor desires as a performance investment.