re: "There just isn't much to say right now. I'm finding hardly anything to put money into despite growing a cash position (suggestions welcomed)"
I have a high cash level currently, but have been buying quite a bit in the energy sector over the past 2-3 months. I'm sure you're watching the sector, but if you feel like oil price recovers in due time you'll probably find some attractive values there. What I've added:
Energy: HP, NOV, OXY, MUR, OIS, HES
Refiners: VLO, WNR
Overall I'm approaching energy/oil from a standpoint of diversity, so I'm just spreading money across things that look attractive quantitatively as this is more of reversion to the mean investment than anything. I haven't added a major yet, but CVX has been tempting.
Also bought some small exposure to Europe with VGK. This is based purely on relatively high valuations in US, and w/ strong dollar I feel like I'm getting more for my money in the process also.
Pilgrim's Pride PPC also just seemed awfully cheap to me so I bought a small position. It's all about the price of chicken (aside from the bird flu issues).
(I saw CF mentioned in a post earlier. I haven't added to my position recently, but I'm a longer term holder, but it's a pretty simple story that I buy into: a low cost producer, with good location in US ag markets, with access to cheap inputs (natural gas), and is expanding to take share away from higher cost imports. At least that's the case currently. If NG prices rise then ... not good. Main concern seems to be if too much capacity comes online domestically it could crush margins for everybody, because prices are currently set by the higher cost importers that they're taking share from. Some concerns around farmer buying power also. Overall risk reward seems favorable given valuation.) |
