Paul,
I have plenty of 'value stocks' as far as my definition of value.
Some trade below book.
Some have P/E's of 7 or less.
Some have 10% yields that are rising.
Some are turnarounds in progress.
Some are actually breaking out to new highs, but have very low P/E's
Here's a few samplings.
BONT - turnaround. Nov had 17% same store sales, though this is skewed
by extra Chrismas shopping in November. Next year could earn .75 - 1.00
Also, BONT is trading at a fraction of book. Will have store closings soon.
BMLS - turnaround. trading below book. Last qtr had strong earnings
turnaround. Company earned .92 in 1994 and may do the same next year.
Big news is the automated machinery they took delivery of in 1995 and
ate up profits through 1st 1/2 this year fine tuning it. Now labor is
off by more than 50% on jobs using the machine and re-dyes are way down.
ELXS- Huge, Huge, Huge accumualtion recently. Normally trades 10,000 or
less shares per day. 167,000 and 105,000 or so in last 2 days. The
company has restaurants and experienced a tough winter due to New England
snows. Now is experiencing difficulties in maintaining sales in an
acquisition chain that forced them to speed up conversions to their
Bickfords. probably will earn .75 or more this year and .90 next year.
Consistent mangaement for 5 previous years raising earnings from .49 to
.59 to .69 to .79 to .89. They also bought back 1,000,000 shares out of
6 Million in 1994/1995. I wouldn't be surprised if they are the ones
buying the shares in the last 2 days. P/E is 8 or so.
SNSR- new company hovering near high. P/E is 9 times 9 month earnings.
MLWL - trading near 10 or 11 times earnings, just broke out to new highs.
Dogs that are probably way oversold that look strong technically -
Be careful about one last wave of year end tax selling.
ADEX
OLGC
MNPI
HRT
BCU - One of it's competitors MEOHF is breaking out of a few year
trough, yet BCU is at it's low and looks like earnings are slowly
coming back. Yield may be 10% or higher this year.
FRP - Fertilizer prices are down. This yields 11-12%. POT- another
fertilizer company has seen it's shares rebound recently.
REIT's paying 10% or more with rising FFO.
REA-10-1/2% yield. Low payout rate of 70% of FFO. Most REIT's are 80-85%
Raises the dividend 1/8 cent every quarter. owns apartements. 4 in Denver
This is my biggest position.
MAL-11% yield. Owns a lot of strips anchored by K-Marts. Just released
an empty anchor last month. Still has 2-4 empty anchors.
GLR- 8% yield. Up 50% this year. They are apparently the only company
helping make deals for not-for-profits buying Nursing Homes.
more undervalued that are growing.
MAX-Great management in a slow growth industry. P/E about 10. I think
they may grow earnings 15% or more this year.
MODA- Need to see another quarter, but potential is huge. Earned .15 in
last quarter after only .01 previous. trading near it's high
DSWLF- already discussed. Hong Kong risk. P/E is 6. Dividend is 5%.
INT- P/E of 13-15. On a strong run.
LUKN- low projected P/E near high
OJ- P/e around 8 in a cyclical industry. Pretty good management.
RHT- strong move made recently, wait for a pullback to 4-1/8 or so.
P/E around 9. President keeps buying more stock every 3 months or less.
I own a small position in most of these. ELXS, BMLS, REA are the ones
that I like the best and have the biggest positions. ADEX, MLWL, and
OLGC may move the fastest when they move.
regards,
Richard |
