Ray,
I think your favorite will probably depend on what type of investor you are (e.g. growth or value). For the most part, except for technology sector (my day job), I am more value-oriented.
I especially like financial spin-offs - ChoicePoint, Inc. (NYSE:CPS) and Waddell & Reed Financial, Inc. (NYSE:WDR). I'll be looking into CPS to see what price I can justify, and waiting to see what happens in the WDR in the spin-off. Both these look like they could show higher than average growth. If I was looking at these investments from a purely growth-investor standpoint, I'd definitely take a very close look at CPS, as it is, it may be too expensive for me. WDR has a very simply means to improve growth - offer their mutual funds at super markets or through discount brokers. Their fund's performance records are not so good, but some are OK. If it becomes cheap, I'll pick some up after the IPO, otherwise I'll wait and watch for the TMK spin-off.
Bolle, Inc. (Nasdaq:BEYE) looks interesting but depends on what price. They're going to end up with 7.5 million shares. But the market price could be placed just about anywhere from $5 to $10. If it gets below $5, I will look at it very carefully. Subject to dumping? Don't know, maybe - both parent and spin-off are reasonably small.
PriceSmart (Nasdaq:PSMT) - pretty cheap with cash to lower risk, but I don't know if the "international price club" concept will work or is working. Maybe someone else has some ideas. Subject to dumping? Looks like it so far. I'll wait for a cheaper price or more developments.
Unisource Worldwide, Inc. (NYSE:UWW) has a good yield and cash flow and seems very low risk at current prices. Is there a opportunity for cost reduction and margin improvement? Almost definitely! Is the current management/company going to do it? I don't know. If I was income oriented, I would definitely take a look from the cash-flow stability/yield prespective. Already heavily dumped.
Unova Inc. (NYSE:UNA) has reasonable growth in a below average sector, my buying price is between $10-$12 (I'm cheap). It's somewhat based on how hot the economy is - the industrial automation side anyway. Already heavily dumped.
In addition to those that I listed, I like these that have been mentioned before - AFS (yes!), NH. VL - very promising. WH/MDS/HSM waiting for better opportunities.
In the emerging from bankruptcy situations... No great companies here right now, but if you think these companies can turn around there's lots of opportunity for appreciation.
Advantica Restaurant Group, Inc. (Nasdaq:DINE, Nasdaq:DINEW) has shown progress paying off debt, has some good brands. The warrants are sufficiently long-term to be very interesting (if I recall correctly, the strike price is about $15 so they're out of the money). Still highly leveraged, but very much improved over the pre-chapter 11 company. Should be one of the first companies that will appear on the institutional investor's screen. Warrants are not very liquid. ~$400 Market Cap with ~$2.2 billion.
Smith Corona Corporation (Nasdaq:SCCO) - lots of cash - selling below book value and cash level - company seems to be making progress against goals. Stock is not very liquid. Very small market cap.
Sizzler International (NYSE:SZ) - 3 or 4 quarters of profitabilty coming out of chapter 11 is reasonably impressive. In my opinion, it was a reasonably good buy at $2 but not a good buy now at $2 3/4.
Stew |
