Buying cement, steel, apparel stocks today.
I allege the following are value stocks:
Garan(GAN): Selling about 1.1x book value, no long term debt, ROE about 16%, 5.5x cash flow, 7.6% profit margin. "Excess"(?) profits paid out as extra dividend (not reflected in Yahoo) Negatives: apparel mfger with vast majority of sales to Wal Mart. Offset somewhat by possible consumer brand "garanimals" Other negatives: a small float with strong insider/owner control.
Steel Technologies (STTX) 11.3% annualized growth in sales over past 5 years, relatively low psr of .2, .6 price/bk, 2.8x cash flow. Negatives: small cap steel co. with d/e .9, insider sales. Adding this one to my steel positions -- X, AKS, and steel suppliers UCR, CLF. I see a double in a couple of years -- although I have to wear glasses over my contact lenses -g-.
Cemex (CX): 3rd largest cement producer. Primarily focused on third world. Everybody seems interested in the build-out of the internet/wireless/telephony for third world. I'll go with the idea there's a bunch of third worlders who'd like to upgrade their basics like having cement floors instead of dirt in their houses. CX in Mexico, from what I read, specializes in marketing cement - one bag at a time. P/e is 6 (all these cement/aggregate co's are at low p/e's), ROE 25%, p/bk 1.2.
GAN, STTX are selling near annual lows. CX is in a low part of what might be its trading range.
Paul Senior |
