Yes, value may be coming back into style, unheralded.
The news only quotes the Dow and talks about internet companies,
but something is swirling underneath the surface. I wish I had
bought New Holland as you suggested, or AG, but I didn't. I did buy
Deswell, and that has shot up quite a bit. You mentioned tobacco,
and BGL has gone up, but what about RN? That is just lying there,
and yet they should spin off the tobacco business next month. You
didn't mention the oil stocks, and I don't know if you would consider
them value plays, but they are way up, including Global Marine and
Maverick Tube, two of my favorites. You didn't mention Singer (SEW),
but it is way up (to 5.25), along with many companies with some kind
of Asian or third world connection. The sometimes-touted Elamex
(ELAMF) has not moved, though, still crouched below $4.00. It is so
thinly traded, I gave up on getting any. I have not heard anyone
mention how many companies currently pay a huge dividend, besides
utilities. For the enterprising dividend investor, this would seem
to be a gold mine:
Allied Capital--------(ALLC)--$17.50 Yld 9.1%
British Steel---------(BST)---$23.50 Yld 7.0%
Deswell Ind-----------(DSWL)--$12.75 Yld 6.4%
Foster-Wheeler--------(FWC)---$13.25 Yld 6.2%
Pennzoil-Quaker State-(PZL)---$13.25 Yld 5.4%
RJR Nabisco-----------(RN)----$26.50 Yld 7.9%
United Dominion-------(UDR)---$11.00 Yld 9.6%
These stocks are not without risk, but they are all in different
sectors with different sorts of risk exposure, and have decent
balance sheets and ongoing businesses. I would be interested
to know if others have found companies with similar
characteristics, and if there are any comments on
these companies. |
