I'm buying and selling-- but what a lousy day today to be a buyer. Seems very difficult to get good prices. I am stepping up anyway.
I've bot WES or Wescorp, a small California-based bank with a subsidiary that does sub-prime financing (yes, I have not apparently learned my lesson with this business!) as well as refi's. President has increased his ownership of the company about at current price. Stock does seem reasonably priced relative to others - (although as I've stated before, investing in "relative" bargains is no bargain at all - really very dangerous.) However, there's a reasonable increasing div., okay pe, and prospects (IMO) for growth over next fews years. I'm diversifying my banking interests here - still own all regional bank stocks I've mentioned before. It was a toss up for me to add to my small position in NB or start here. Started initial position in WES last week before recent pop in its stock. I expect stock to settle back down, but just lost patience to wait. (Got sucked into excitement of rising market --that's an oops -g-)
Buying CCS which is the real estate operations of old Castle and Cook. Run by Dole's Murdock. This is basically a real estate play in two areas - although the Co is trying to diversify. Company is heavy into Hawaii land (not doing so well in selling their houses there though - market is down) and Bakersfield Calif (near to Tejon Ranch? -g-.) Stock is down in its trading range (very limited history with the stock though), mutual fund buying. Market cap below assets (I would like to believe).
Added to my position in ICOC (ref. my posts here 2098 and 2876)which I bot @ 5.7/8. I like it still and better at today's buy price (for me) of 4.7/8. Lots of cash (debt too). Below book value and okay business model. Nice dividend supports stock price (-g- that's what I thought at 5.7/8. Wonder if I'll be saying that too at 3.7/8 -g-)
Been selling off relatively large positions in TOY and SRM (Sensormatic). I've got to update my records, but it does seem like with my stocks, they 90% probably go UP after I sell them. Been waiting almost 3 years for SRM. Now that I've given up, it's going up. I hate that -g-. And I'm tired of riding TOY up and Down. My long time purchase of McFrugals was bought by Consolidated Stores which stock I'm still holding -- they own KB Toys. That's too many toys for me. So I've been reducing TOY holdings. Looks like I may be pitching out the wrong stock.
FWIW, I've added today to my position in Flextronics (FLEXF). It's a big holding by Ron Baron (his fund). Not really a value play IMO, but a speculative buy. Anybody who follows Electronic Contract Mfging thread can follow extremely well done (IMO) detailed analyses of this and other such stocks. (Paul Klemencic, who posts occasionally here, is the moderater and Guru (in my view). This stock and others like it are really almost paradigm shifts (sorry -g-) in the way some businesses will manufacture products. It's no longer necessary or perhaps even desirable (this can be debated) for companies to sustain their own manufacturing facilities.
I am reviewing my position in Exide (Ex) which I still hold. I wrote it up here about March of '97 when I bought at about 17. Now it's about 23. Starting now to see a number of mutual funds come in and take positions (but I can't figure why they're buying now). This might indicate a signal for individual investors to buy again (???). Lead pricing and plant consolidations in Europe hurt business last year. The lead pricing issues may be resolved (I'm not sure - don't follow spot/contract prices.) President's reputation also is somewhat tarnished in past dealings with analysts apparently. (That's Exide's president, not referring to OUR Pres. -g-) Also el nino has meant warm weather---not so good for battery sales. Any opinion anybody has on the battery biz or Exide, or especially, any analyses anybody has done or seen regarding buying stocks after value funds come into it -- I'd be interested in reading here or on Exide thread.
Paul Senior |
