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

To: E_K_S who wrote (44798)	10/6/2011 10:01:55 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78667

re Tesco @18.4$- TSCDY.PK I decided to sell Tesco too today , based on valuation. I agree it's a good outfit but I don't see any outsize gains in this stock. BEKB.BR @28.5Euro - I decided to buy some Bekaert BEKB.BR overnight. Bekaert is a steel fabricator - (wires for tires, fencing and many other special and niche application). I have watched this company for a while and they are quite nimble but with world wide operation. They always remained profitable despite significant revenues losses in the financial crises and they pay a decent dividend (1.67 Euro). They buy back some shares if they consider them cheap. The company operates with moderate gearing (net debt ~ 1/3 of equity) which appears like their target value over the years. I believe a family owns 40% of the shares,which explains why they rationally allocate capital. bekaert.com A few years ago, I had some contact through my work with the company with the material division (recently sold to Saint Gobain). They were selling spray coated materials for architectural glass coating lines, but not only that, they sold a complete mechanical adapter kit to install their sputter targets in various machines. According out mechanical engineer, those kids were much better than the original ones supplied by the manufacturers and their upgrades. I felt that this was impressive. Not that it matters much, especially since they sold this division. However, if that is the way Bekaert operates in their other business lines, they may be able to keep ahead of their competition. This might well turn lower but I wanted a foot in the door. I did sell DVN at a loss today because I felt my portfolio became too oily (I was dead wrong assuming energy pricing would hold up in a downturn) and I wanted to keep my good dividend payers E and TOT (european oils that trade at even larger discounts to intrinsic value imo). I added some AHL and AXS (Jurgis favorite) on the recent downdraft. I feel like the insurance stocks have found a base at the current ridiculous discounts to tangible book.