Ron, well, if we're in a bear market regarding value stocks--now might be the time to buy. That's often (not always) been a good move. That's how I think the world works (my weltanshauung= world view). I think it's time to do some buying, and this is what I've done:
Adding to my position: LTV. Selling at year low, but imports are coming 'they' say. Earnings are down. $5/sh in cash, selling for 7. 5/8. Good price to cash flow. Entering new business (perhaps a catalyst eventually to move the stock) Mentioned here before by somebody as an Al Frank favorite.
Adding to my position: Toys-R-Us (TOY). Stock hitting new lows. A Bill Miller (Legg Mason) recommendation. Etoys is getting the internet media attention, but TOY will be (is) there too. Earnings growth down from prior years, lots of competition (Kmart/Wal-Mart). I've owned and followed TOY since '95. Sold most earlier this year. Also still own CNS (Kaybee). Nice words by TOY customers-stockholders on SI - TOY thread. New management could be catalyst to propel stock (propel up I hope -g-).
Adding to my position: PFG @ 10+. I don't know what I am missing here, but possibly something-- I can't see it or figure it. Stock at 10+, insider buys at 30, Swiss and investment mgmt firm taking a position at bv (which I figure is maybe 18-20, somebody on Yahoo says 16), managers have committed to purchasing shares for themselves in open market. (Maybe the agreement -Swiss/managers/etc. is non binding. Investment is going to be 'up to' 75M. Maybe it will be actually only .75M.) Stock offers a market equivalent yield. Profitable co. Don't know what I don't know, so I keep buying: 13.3/4, 12+, 11+, and today 10+. It's going to be an outsize position in my portfolios-- I hate that -g-.
Adding to my position: WES. Bank specializing in mortgage servicing and sub-prime auto loans (ugh!) But selling under bv. Largest and controlling shareholder is CEO. Has cut faltering operations to improve profitablilty. At 11.1/2, I'm buying more. (Even though, as I've often stated, I've been mighty wrong before on these co's which deal in sub-prime auto loans.)
Adding to my position: HOT. Humongous hotel operator. Great record past four years. Looks like it's hit the wall now. 5% div. Bill Miller (Legg Mason) recommendation. Also recommended (strongly, IMO) by hotel/gaming analyst on Wall Street Week past Fri. (Oops sorry- that's useless info-- but just need to pump my confidence up a little -g-)
Starting new position: Cooper Tire and Rubber (CTB). A me-too player in some markets maybe, and the Asians will perhaps flood the tire market soon. Still, I like my relative dividend model-- it puts me in these large cap ($1b+) stocks when they are down, and gets me out too (well, sometimes...still holding JC Penney at a diminishing profit. (Idea is to sell when div. is low -relative to itself and market). CTB is a perfect model fit (Uh-oh. That could be a danger with such a mechanical way of investing). 2.5% yield for CTB has in past 15 years signaled a VERY good buy point. I'll bet history repeats. So starting a very small position.
Adding to new position: MMI as in June 29,1998 "MMI is One Cheap Stock" in SmartMoney. Article says Tweedy Browne is buying. Insider buying too. Good rev growth '93-'98, increasing divs., now selling slightly below bv. Medical Malpractice Insurance ---- competitive biz. But.. Crimini... is there a dinky insurance company below bv that I won't buy?
Adding to my position: Bristol-Myers Squibb(BMY). What can I say? The stock market is the only place I know where, when the price of something doubles, people think it's become a bargain. Sold some BMY at 44 (I thought it was fair valued there---oops,ouch -g-),some at 88, and some at 98. Now buying back some at 112. Yikes.
Adding to my 'ah screw it' stock. I like and use Earthlink. I like and use Yahoo. My friends like and use AOL. Too bad I didn't take a flyer on these stocks. Well, I like and use Silicon Investor. So 'ah screw it' -- I'm gonna take a small taste of GNET (Go2Net).
That's about it for today. I'll probably have a bunch of buy orders tomorrow for some other new positions (for example, maybe AMP??)as well as adds to current.
Good investing! Paul. |
