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

To: Paul Senior who wrote (20696)	2/20/2005 8:11:49 PM
From: E_K_S	Read Replies (2) \| Respond to of 78732

Hi Paul - Many of these oil stocks have had double digit returns over the past 24-36 months. It reminds me of how the home building stocks have moved (and still move higher) so my play has been to look at new investments that service the oil group. Specifically, I have put more money into the tanker stocks but am looking for other products or services that sell to this sector. Perhaps, they will benefit more (on the margin) from a continued run up in the oil sector. Any ideas? I have hedged a small portion of my XOM and MRO with long term Jan'06 options so I can keep the dividend stream and protect my large capital gains. =========================================================== I continue to like the banking sector and do feel that there continues to be special value plays in the regional banks. Both C and JPM may be safer as they are larger and diversified. Any suggestion on the best allocation of funds to regional Vs large bank organizations. Currently, I have 80% targeted in the regional sector and about 20% in the larger conglomerate banks. ============================================================= Two other stocks that look interesting to me are MMM and GP. GP is more of a value situation at current levels. I wonder if you or anybody else have analyzed this company for (1) hidden capital assets and (2) earnings growth potential given the boom in the housing market. MMM continues to rocket higher and they have increased their dividend again. This company is no real value based on their current and forward PE, but they do have a very profitable drug division that could be spun off at much higher levels. The company has stated that 2005-2006 will produce double digit growth and they continue to innovate new products. How should the value investor quantify some of these very profitable divisions that as separate companies would demand much higher PE's? They also generate a lot of patents which currently do not generate a steady income stream but have potential value (to the right company) which IMO is not factored into the current price. Maybe I will have to hold my nose and like you "take a very small position" and ease into the stock slowly. EKS