Disclaimer: I'm not necessarily saying these are stocks I would buy right now - I was trying to answer the question as posed. Graham stocks often have serious issues. That said..
TGA is interesting, but recent operating performance is scary. Do you know why? Are they turning it around?
Yes, they're burning through cash at an alarming rate. Incredibly, I still haven't managed to find a single attractive stock play on the oil sector right now, even though I feel reasonably bullish on oil prices. BNKJF supposedly has a better balance sheet (maybe they just haven't made write offs yet?) but the liquidity sucks.
GBX is highly cyclical. I wonder whether recent performance is sustainable.
Same is true of TRN and RAIL. I often wonder what isn't cyclical nowadays.. it seems like businesses with very stable FCF have been levered up to a point where they are effectively cyclical - look at pharma and consumer defensives. You can still make money on these sometimes, as we've seen since the first of the year.
RAIL has a very low FCF and highly volatile...
Yep. I prefer GBX over RAIL.
UTHR looks extremely interesting, but I don't understand the business and its sustainability (patents and so forth). Can you explain it me?
This is a play that is as you say is not simple, and I don't own it yet. Management is very cagey about industry-critical information, namely how big the hit from generics by Sandoz and Teva will be. I personally think they will be substantial, but OTOH UTHR is a SME in PAH and have some strategies for LCM that may mitigate the ability of generalists like these 2 to easily win credibility with physicians - UTHR hits the disease state at multiple failures in the course of disease. They have a nice cash position but about 25% of that will be blown in frivolous cash payouts to management and other large shareholders, probably at the worst possible time. The stock is in a bit a death slide right now and I think better prices may be seen, but they are also a company I don't expect to be freestanding forever given their cash, still decent franchise, and present interest rate environment.
TBNC seems to have interesting financials, but I think the upside of a bank trading at 1.1 PB is limited nowadays.
That's why I like regional banks that are growing their book at a significant pace.
IEHC has a very weak FCF and profitability... Do you understand the business model, profitability and growth prospects?
They are plowing a lot of their cash into inventories from what I can tell. That may actually weaken its candidacy as a Graham pick.
The Company is sought after by many of its customers to design and manufacture custom connectors.
Our customers consist of OEM’s (Original Equipment Manufacturers), companies manufacturing medical equipment, and distributors who resell our products to OEMs. We sell our products directly and through 16 independent sales representatives located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union (EU).
The customers we service are in the Government, Military, Aerospace, Medical, Automotive, Industrial, Test Equipment and Commercial Electronics markets. We appear on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic and military markets were 39% and 53%, respectively, of the Company’s net sales for the year ended March 25, 2016. Our offering of “QPL” items has recently been expanded to include additional products.
They have significant customer concentration which is probably the biggest risk factor. If you buy, be prepared to ride through a recession (Lazarus obviously is).
SYNT is a company in which I invested recently. It looks very interesting.
I agree, but I need to do more digging at the current valuation/ cash position.
PHO.V is interesting but it is not available in my broker.
Still trying to open an IB account, lol :/ |
