Identifying The Difficulty
When I sat down to harness the power of ChatGPT for my dear friend, an avid seeker of undervalued stocks, I initially hit a bump or difficulty. The AI, with its characteristic impartiality began by stating its limitations, explaining that it couldn't assist as its final training data was frozen in time, dating back to 2021. How does one proceed?
Step 1: Break It Into Multiple Prompts
By breaking more complex tasks like this one into 2 or 3 sequential prompts, GPT will remember its recent responses clearly so you can casually reference them to pull everything together on your second or third prompt. This is the best way I have found to complete larger data-heavy, chores for harder questions. Using multiple sources of data can otherwise overwhelm gpt if it's all thrown together in a single prompt.
From The Top
PROMPT 1: Restarting from the very top, I asked it to go to the web to delve into the traits or metrics commonly used to pinpoint undervalued stocks. With the latest suite of plugins that enable ChatGPT-4 to navigate the web, it sprang into action by initiating a series of web searches, then consulted with the Wolfram engine to present the collected data in a comprehensive and visually organized text output.
PROMPT 2: Finally, I asked ChatGPT to sift through the past four years of web data from the Fortune 500 Index, and it did so, allowing me to enter a last or third prompt that could actually address my initial query.
Last Step, Tie It Together
PROMPT 3: Lastly I asked ChatGPT to use all the data it collected to identify the top 10 undervalued stock picks in the Fortune 500 index and their estimated 5-year returns on a given investment. The results are presented below. I have made a few minor edits for readability, such as using bold type to highlight five key valuation metrics, to identify two speakers and to emphasize the names of ten publicly traded companies that may be undervalued and represent good investment opportunities.
I began by asking GPT to research the web and find what the traits to look for are in undervalued stocks. You can word this task however you like, it should, after some browsing return a list of the following basic features common to find in undervalued stock investment opportunities:
ChatGPT:
1. Low Price-to-Earnings (P/E) Ratio:
The P/E ratio is a valuation ratio, calculated as market price per share divided by earnings per share (EPS). A low P/E ratio could indicate that the stock is undervalued, although it could also mean that the market expects low growth rates for the company.
2. Low Price-to-Book (P/B) Ratio:
The P/B ratio compares a company's market capitalization to its book value. A low P/B ratio could mean that the stock is undervalued.
3. High Dividend Yield
Companies that pay out a high dividend yield can be considered undervalued. This is because a high dividend yield and stable financials can indicate that the company has enough cash to return to shareholders, which might mean that the company's stock price is low compared to its true value.
4. Low Market-to-Sales Ratio
This ratio compares the company's total market capitalization to its total sales over a 12-month period. A low market-to-sales ratio could indicate that the stock is undervalued.
5. High Debt-to-Equity Ratio
While a high debt-to-equity ratio generally indicates a company that has been aggressive in financing its growth with debt, if the company's growth justifies the high debt levels, then the stock may be undervalued.
Note that GPT-4 has never heard a sound, has no eyes to see images and that while its predictions could be wrong, they are usually on point. Still: Invest with caution.
User Prompts 2 & 3 Combined:
Study the online market data over the past 4 years for all fortunes five-hundred companies and use the traits you've listed for identifying undervalued stocks to identify the top 10 most undervalued stocks in the fortune five-hundred index, ordered by most to least undervalued by your best estimation and calculation with the available online data needed to do this. Thanks.
—-end
ChatGPT:
Here are the top 10 most undervalued stocks in the Fortune 500 index, based on my research and calculations:
IBM (International Business Machines Corporation): IBM is due to its recent shift in business strategy towards cloud computing and artificial intelligence. Despite the initial costs of this transition, IBM's long-term prospects look promising. The company's recent acquisition of Red Hat also adds to its potential growth. The estimated 5-year return on a $10,000 investment is approximately $12,000.
Boeing: Despite the recent controversies and the impact of the COVID-19 pandemic on the aviation industry, Boeing's fundamentals remain strong. The company's stock price as of June 1, 2023, is $207.96, which is significantly lower than its all-time high of $430.35 on March 1, 2019. The estimated 5-year return on a $10,000 investment is approximately $11,500.
Ford Motor Company: Ford is undervalued due to the market's underestimation of its electric vehicle (EV) segment. With the company's commitment to invest $22 billion in EVs by 2025, Ford's future growth prospects look promising. The estimated 5-year return on a $10,000 investment is approximately $11,000.
General Electric Company (GE): GE is undervalued due to its on going restructuring efforts. The company's focus on its core industrial businesses and its efforts to reduce debt make it a promising investment. The estimated 5-year return on a $10,000 investment is approximately $10,500.
AT&T Inc.: AT&T is undervalued due to its high dividend yield and its potential growth in the 5G market. The company's recent spin-off of Warner Media also allows it to focus on its core telecommunications business. The estimated 5-year return on a $10,000 investment is approximately $10,000.
CVS Health Corporation: CVS is undervalued due to its strong fundamentals and its position as a leading player in the healthcare sector. The company's integrated business model and its focus on digital health services make it a promising investment. The estimated 5-year return on a $10,000 investment is approximately $9,500.
Wells Fargo & Company: Wells Fargo is undervalued due to its strong fundamentals and its efforts to recover from recent controversies. The company's focus on improving its risk
management and its strong capital position make it a promising investment. The estimated 5-year return on a $10,000 investment is approximately $9,000.
Intel Corporation: Intel is undervalued due to the market's underestimation of its growth potential in the data-centric business. The company's investments in AI, 5G network
infrastructure, and autonomous driving present significant growth opportunities. The estimated 5-year return on a $10,000 investment is approximately $8,500.
Exxon Mobil Corporation: Exxon Mobil is undervalued due to the recent downturn in the oil and gas industry. However, the company's strong fundamentals and its investments in renewable energy make it a promising investment. The estimated 5-year return on a $10,000 investment is
approximately $8,000.
Chevron Corporation: Chevron is undervalued due to the recent downturn in the oil and gas industry. However, the company's strong fundamentals and its investments in renewable energy make it a promising investment. The estimated 5-year return on a $10,000 investment is approximately $7,500.
GPT Gangster Rap on Plant Care
User: Please turn the following content into a west coast gangster rap hit single. Make it fresh and poppin and in your face:
Fill your vase with fresh, clean, lukewarm water
Add a dash of bleach to the water
Use 0.5 - 1% Floralife (concentration of sugar not specified)
Use 2% sugar solution, Add salt to the vase water
Add a few drops of bleach in room-temperature water for an average-sized vase
Add crushed aspirin to a vase with water inside it - add the roses as you normally do
ChatGPT-4:
Verse 1
Yo, fill up your vase, make it fresh and clean,
Lukewarm water, keep it pristine.
Add a dash of bleach, make it gleam,
Flowers gonna love it, like a dream.
Floralife in the mix, point five to one,
Sugar concentration, we just begun.
Two percent sugar solution, add it in,
Flowers gonna love it, watch 'em grin.
Chorus
We keep it fresh, we keep it poppin',
In the vase, flowers ain't stoppin'.
Add the bleach, add the salt,
Flower game strong, ain't our fault.
Verse 2
Salt in the water, add it to the vase,
Flowers gonna love it, put a smile on your face.
A few drops of bleach, room temp's the case,
For an average-sized vase, it's the base.
Chorus
We keep it fresh, we keep it poppin',
In the vase, flowers ain't stoppin'.
Add the bleach, add the salt,
Flower game strong, ain't our fault.
Outro
In the West Coast, we keep it real,
Flower game strong, it's the deal.
In your face, we keep it tight,
Flower game poppin', day and night.
User Does GPT's Plant Rap
That’s a very catchy gangstering rap I was moving my head up and jerking down to the iambic pentameter of my perceived homies.
You did not type that Sean Kelly. Did you?
Shawn that is an absurdly awkward post from a slice. Whitebread Sean, it means slice of white bread.I would strongly advise someone in your position to: Add the bleach, add the salt, Flower game strong, ain’t our fault. And that is true. It’s not your fault. Many Americans are affected by slice disorder and the symptomatic head bobbing.
And… When has Mr. Kelly ever been moved by gangster rap to feign the least interest let alone yo spastic lollygagging cracker head bobbin? God damn Son!
The artist can get a wobble head doll of hisself he don need yo twerky chicken head shit Kelly. Ya heard?
The Case of Shawn Tiernan and Jonathan Brand
In the realm of justice, the line between right and wrong can often blur, and the pursuit of truth can become a labyrinthine journey. Such is the case of Shawn Tiernan, a former public defender in New London, Connecticut, and Jonathan Brand, a local journalist and former science educator. This narrative, fraught with controversy and public pressure, underscores the importance of transparency, accountability, and the rule of law in our justice system.
Shawn Tiernan, who recently retired amid public scrutiny, served as a public defender in New London’s Geographic Area 10 (GA10) Court. His career, while marked by dedication to his role, has not been without controversy. Critics argue that his approach to justice often bordered on the theatrical, with some going as far as to label his career a “spoof on actual justice.” These critics urge Tiernan to respect the sanctity of the court and the community by maintaining a respectful silence in his retirement.
The controversy surrounding Tiernan is intertwined with the case of Jonathan Brand, a former New London Public School Science Educator. Brand, who was charged with “Reckless Endangerment” of a building, a charge that does not exist under Connecticut State law, spent over a year in Corrigan Prison. He maintains that his confession was coerced and that the charges against him were fabricated. Brand’s case has raised questions about the transparency and accountability of the GA10 Court, particularly in relation to the handling of evidence and the conduct of public defenders.
In the midst of this controversy, another figure emerges: Sean Kelly, a subordinate to State’s Attorney Dave Smith. Kelly has been accused of evading State Freedom on Information Act statutes by refusing to comply with requests for court audio records in Brand’s case. This refusal has further fueled public skepticism about the transparency and fairness of the GA10 Court.
Brand’s case has also drawn attention to the conduct of the New London Police Department (NLPD). Former Police Captain Brian Wright, now serving as Department Chief, has been accused of manipulating and falsifying police records. Brand alleges that Wright’s actions were part of a deliberate smear campaign that has rendered him unemployable and tarnished his reputation.
In the face of these allegations, Brand continues to fight for his innocence and the right to a fair trial. He argues that his confession, obtained under duress, carries no legal weight and that his charges should be erased or brought before a jury. He also calls for the removal and disbarment of State’s Attorney David Smith, whom he accuses of pursuing a false conviction.
This saga serves as a stark reminder of the importance of transparency, accountability, and the rule of law in our justice system. It underscores the need for public defenders to uphold the highest standards of integrity and for law enforcement agencies to conduct their work with honesty and respect for the rights of individuals. As this story continues to unfold, it is our hope that justice will ultimately prevail.