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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (20096)	11/19/2004 10:56:47 PM
From: E_K_S	Read Replies (2) \| Respond to of 78523

Hi Paul - Have you used the new Google search site called "http://scholar.google.com ". This is a beta site that provides research only indexed items. I did a search for "value investing", "Graham" and "Buffet". Here is one of the 41 articles that came up; (http://ifecorp.com/Papers-PDFs/Carlson1099.pdf ). I found it quite interesting. Anyway, you might want to add this site to your tool box. I am still looking at the chicken producers and really like the No. 3 player GKIS (Gold Kist Inc)you recently discussed and may begin to accumulate shares in this one rather than SAFM (Sanderson Farms Inc). I think a small portion of the portfolio in this sector is a smart investment and provides a good "value" play. SFL and FRO announced their earnings and company forecasts last week. SFL raised their dividend from $0.35 to $0.45 and continue to participate in 20% of the profit sharing agreement with FRO. I think $20/share is an excellent entry point, so my strategy is to sell naked Puts to buy more shares and hedge a portion of my holding (bought between $17 & $21) with May $25 calls collecting another two dividend payments. Several of my natural gas company plays reported and I am extremely satisfied with UGI (UGI Corp) and management's conservative style. This stock is up 18% from when I mentioned it earlier this year. That does not include the 3% dividend either! They upped their earnings forecast based on (1) a better than expected valuation (from independent auditors) of their recent acquisition and (2) higher revenue cash flows from this operation than previously estimated. This signals to me that management went into the deal with very conservative expectations and as they gain operational experience with the "real" numbers, they will up the overall estimates higher. Finally TRP (TransCanada Corp) is another one I mentioned at the same time as UGI and is up 26% and that pays a 4% dividend not included in the gain. This company is set up to participate in the delivery of natural gas on both U.S. coasts. They just acquired the exclusive rights to the western distribution pipe line. They have excellent long term growth prospects. I would like to buy more shares of each company but it's hard to buy at higher prices. I guess from my years of investing, it is good to average up. I will be looking to buy more of each company on dips if possible. We also saw this week the shrewed (and crook IMO) investment hedge fund put together the Sears buyout. I believe the loosers were the common shareholders both for K-Mart and now Sears. Unfortunately, the common share holders had no advocate for them in the back room of the bankruptcy court when all the deals were put together. That's a shame. Keep your eye on ABS and JCP for some possible similar deal. It's possible that ABS is the best bet and would only happen once their $1.5 billion convertible preferred expires in June 2007. EKS