Following you into Sensient Technologies. I can't really account for SXT's valuation outside of the dependence on the food processing industry. Did you come up with any cons?
I'm not excited about any stocks I talk about here... they are a lesser of 'evils' for me vis-a-vis cash, bonds.
I have put recently into the oil majors (BP, COP), more into Valero (VLO). I don't understand why the market expects oil to return to the low 20s in the face of the rosy economic prospects implicit in the equity markets' performance. I'm beginning to look at the oil service companies again but I'm not ready yet. I've been out since they bounced back from the 1998 plunge. Transocean is approaching those levels now (ticker: RIG).
I put some into the RBOCs (SBC Communications-$21, Verizon $32)... yields are approaching 5%, debt still rated A, earnings are flat/expected to go down.
I put some more money into United Healthcare (UNH) at $53. My last buy was in 1996 at $8, so it's hard to get excited about a next year PE of 15. The company, however, has put a string of 20+ percent gains in EPS over the last few years.
I put money into the lab testing companies (Quest Diagnostics, Laboratory Corp at $61 and $29 respectively). PEs on these two are 13-16 depending. They have grown strongly over the last few years and would seem to benefit from favorable demographics and oligopoly-like competitive positions. Senior debt is rated baa3. Growth has been dependent on acquisitions, however.
I added to Berkshire, Pepsi and CocaCola again for lack of alternatives.
I started a position in Merck (MRK). It's on the new lows list.
I followed others on the thread into Equifax ($23) and J&J ($50) based on reasonable valuations.
On the sales side, I have trimmed REITs where positions have gotten large.
Thanks for your posts, Paul.
Brendan
Stocks mentioned:
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