Wade: Your picks BOOM and/or HIPC may work out. I'll pass on BOOM. Although increasing sales, company's stock at current book value price offers only a moderate ROE. Okay psr, some insider buying, but a small company with no outstanding qualities that I can screen for or see. PE of 12 seems reasonable to me. My opinion is that it is not valid and not such a great thing to compare co. to industry to sector to SP500. Better to compare co. to itself. After all, any value stock is likely to show better psr, bv numbers compared to the S&P500.
I don't find HIPC particularly attractive either - based on my screen. Discussion now on this thread about business strategy and competitive advantage. HIPC is interesting in that they make ethanol additive for gasoline-- Calif. (biggest market for etoh in gas) has dropped requirement I think, so for people here who think about business value, they might worry/wonder about HIPC viability. Might work out okay though based on historical price/book value (which is what I think you are saying). Bet is, I assume, that company will come back. It may. But unless someone has further info., I think there are better buys out there. JMO, and I've been wrong many,many times before. Paul Senior |
