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

To: Paul Senior who wrote (32007)	9/16/2008 1:23:05 PM
From: E_K_S	Read Replies (3) \| Respond to of 78705

I am trying to be a patient buyer as I believe there will be plenty of time to accumulate some of these value plays. It's hard to hold off the trigger when 2-3% (or more) gets shaven off each day on many of the companies on my watch list. Did you see this news today on Seadrill. I believe you have shares in SeaDrill Ltd.. Tuesday September 16, 9:52 am ET Ship Finance International acquires 2 deepwater drilling rigs from Seadrill for $1.7 billion biz.yahoo.com I am very positive long term on the deep drilling rigs and the limited number of new rigs that will be available in the next 24-36 months. Many of these companies (and the support service companies) are 30% to 40% cheaper w/ the recent sell off. I am working the portfolio to bring my average costs down on several of my new core positions and "theme" plays. If I can accomplish this before any significant sustained rally, I should be well positioned for 2009-2010. I am also nibbling at new (hopefully deep discounted) value positions with new money. My focus is to key on companies with good balance sheets, strong cash flow and a history of increased dividend payments. I believe the Fed will be forced to keep interest rates low for some time and I want to generate more dividend income from the portfolio and as a bonus get in at a "value" price. Aracruz Celulose S.A. (ARA) is a candidate that is now at a two year low and yields 10% if they maintain their current payout (it will probably be reduced a bit next year). MDU Resources Group Inc. (MDU) is one I continue to watch and if it comes back to the $24-$25 range I might begin to nibble at a few shares. The dividend is small but they do have a history of steady increases. Penn West Energy Trust (PWE) has excellent NG reserves and is selling off as the price of oil falls. I do not think the 15% dividend payout will hold and it will probably be reduced next year to help pay down their long term debt. I exited my earlier position in late July with a good gain and may re-enter a starter position at these lower prices. PWE is rading near a 5 year low! I am sure there will be more opportunities as this sell off continues. I think a lot of this is forced selling (of earlier winners) to help free up liquidity needed to de-leverage "sour" positions held by hedge funds and investment banks. EKS