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

To: The Ox who wrote (1830)	7/12/2012 3:26:38 PM
From: Sergio H	1 Recommendation Respond to of 4719

I agree with you that it would be best to look for the best opportunity to buy each stock, but don't forget that our aim is to beat the Buffett 10 which will be starting at the same point as our portfolio. I would like to suggest that we create a method for updating our portfolio as deemed necessary. Maybe to take profit or sell a losing position. Maybe every six months we can review our portfolio? But this is premature as we haven't started yet. Here's some suggestions: MSA - Mine Safety Appliances develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military. They are the world leader in what they do....the Coca Cola of their industry. Nice presentation on their website for those not familiar with this co. phx.corporate-ir.net SLM - Sallie Mae - Involved in all facets of college loan industry. They have a niche and what's even better is competitors are getting out. SLM has a boatload of cash and the multiples are cheap. Forward P.E. is in single digits. RGR - Sterm, Ruger and Co. - Firearms. Sells at high multiples, but it can't keep up with demand. RGR had to stop taking orders earlier this year so that they could catch up and has expanded their production to meet the demand. I would have a hard time arguing for this stock being a value play based on metrics, but there's no debt, 5/share in cash and they sell a product that is easy to understand that a lot of people want. SSRX - 3S BIO - A chinese biotech co. Like a lot of Chinese stocks, SSRX reports a lot of cash per share. What I like about this co. is that China has increased its spending on health care and SSRX provides a link into China's market for outsiders like DaVita, a Buffett stock, to get a foothold in China. If SSRX was good enough for DaVita to go into a joint venture with, I go along with the rest of their business currently valued at just over book value. UHS - United Health Services - Hospitals. Obamacare provides a catalyst for for-profit hospitals as it relieves them from unpaid hospital bills from the uninsured. UHS is undervalued applying Graham's Number metrics even after getting a slight bump from the law being upheld by the Supreme Court.