INTRO & VALUE PICKS...
Hey! I'm new to the thread. Lately I've become more and more interested in a value approach to investing as I watch tech stocks balloon and then some. Don't get me wrong...I've benefited from the whole thing (and still am from JDSU--although I keep telling myself I should sell).
Anyways, this thread looks like an interesting one; I hope I can contribute meaningfully now and then.
To start off, here are a couple of value picks that I throw out for your perusal...
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LII (NYSE) - Lennox International
Recent Price = $10 USD
lennoxinternational.com
EPS = $1.55
P.E. = 6.5
Warburg Dillon Read (12mo target) = $25 USD
Catalyst 1: Just added to S&P Smallcap 600 last week
news.stockmaster.com
Catalyst 2: Buying back 3.5M shares (I think there are only 8.5M out there...not sure though) They intend to buy back as many as 5M!!
CHART:
stockmaster.com
ARTICLE FROM MONEYSENSE MAGAZINE (Canadian):
moneysense.ca
<SNIPPED FROM ABOVE ARTICLE>
Lennox International (symbol LII on NYSE, $10.60 U.S.)
The U.S. heating and cooling giant from Richardson, Tex., went public in July, just as the market was falling off its record peak. It is now trading below its offering price but reported record earnings for the third quarter. Management believes the stock is undervalued and will be buying back up to five million shares. Meanwhile, the stock?s P/E ratio is a low six and it is trading below book value. Warburg Dillon Read, the New York brokerage, thinks it will hit $25 (U.S.) during the next 12 months
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ATI Technologies TSE:ATY (or NASDAQ:ATYT)
*numbers are based on TSE listing*
atitech.com
Recent Price = $18.15 (CAN$)
EPS = $0.80
P.E. = 22
Yorkton Securities 12mo target = $37 (CAN$)
*analyst targets range from $24 to $37*
Market leader, graphics cards, HDTV cards, set-top boxes, chips, etc. yet the P.E. is around 23 and they've got GREAT revenue and earnings history. They've got several "design wins" (CEO's words) that can't yet be announced until they have the customer's approval. There has been some speculation about these wins and it is generally thought that Microsoft will choose either ATI or Nvidia for it's new "Black-box" set top unit.
CHART:
stockmaster.com |
