Oops. My pick of USI collapsed a bit. First, Bill Nygren of Oakmark funds, who was a bullish force for the stock, apparently exited his position recently. And last night USI announced lowered earnings estimates and also eliminated the dividend. If I had bought the stock with the dividend in mind (which I sometimes do with dividend payers), I would've sold out my position at this point.
However, given that USI is a substantial and diverse manufacturing company, I'm willing to believe that when (if) its businesses recover, USI stock will too. USI has sold for better than book value many times in the past, and I will bet it will do so again within a couple of years. Given that the stock's about 6 with a book value of about 10, (and the company - so far - is expected to remain profitable), I've upped my small position today.
fwiw.
Paul Senior:
he who has been wrong many, many times before. |
