Update on Valero, State Street, Principal Financial. My first post (see
Message 16943186
) on Valero was in 1/2002 when I bought at $20 split-adjusted. Later I bought at $13 and I have been averaging up since then. I'm thinking about adding again but I'm conflicted because of the rate of stock price appreciation. Like the CEO (see the marketwatch story available in February in yahoo news), I still don't get the valuation.
In December, in disbelief at the disparity between the forward and current prices of oil, and not being willing to add to Valero, I added some mid-cap E&P companies (Devon, Pioneer, XTO, Burlington) based on the Barron's story saying the companies were being valued at an oil price in the mid teens.
I continue to add to State Street. It's a small loser for me. I trust this is patience and not stubbornness.
I added to Principal Financial at $39.50 this month. My take is that there a retirement business is undervalued based on the company's price-to-book. There's upside potential in improving the ROE. I haven't done a lot of research on this one and only have a small position (unfortunately).
I started Budweiser on a sleepy GAARP basis at $47.50.
I flipped the Bennett Environmental for a 25% one month gain in November. Now, I'm back in at $3.08 in March. I still think the multi-bagger opportunity offset the bankruptcy risk. Obviously, this is speculative, but they have very difficult to replace assets (like Valero) and significant earnings potential.
I averaged up on McGraw Hill on 2/28. It's done really well for me and is an okay GAARP stock I believe.
I sold my losing lots in EBAY after the disastrous quarterly report at $43.25, keeping my gaining lots. The cockroaches may really come out next quarter, but I hope to begin adding in the low 30s.
Stocks mentioned:
Valero
marketwatch.com
Others
finance.yahoo.com |
