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

To: E_K_S who wrote (76870)	12/31/2024 10:01:40 PM
From: E_K_S	2 Recommendations Recommended By Lance Bredvold roguedolphin Read Replies (2) \| Respond to of 78778

Highlights for 2025 in my Portfolio: Buy Out at $31.35/share 12/11/2024 +46% gain in less than 6 months (better lucky than smart) (1) Patterson Companies (PDCO) 14.5x PE 3.37% div Patterson Companies Inc. is one of the leading distributors of dental and animal health products. It has 3 segments: Dental, Animal Health and Corporate. Dental segment distributes consumable products, basic & advanced technology dental equipment, practice management & clinical software, patient education systems, and office forms and stationery in the U.S. & Canada. Its customers include dentists, dental laboratories, institutions, and other healthcare professionals. This unit is also the exclusive distributor for Sirona Dental Systems, a leading dental technologies company. Animal Health unit is a leading distributor of veterinary supplies to companion-pet veterinary clinics, equine and large animal veterinary clinics, public and private institutions, and shelters across the U.S. It acquired Animal Health International. Corporate segment comprises general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities. 12/11/2024: Patterson Companies Announces Definitive Agreement to Be Acquired by Patient Square Capital for $31.35 Per Share in Cash Identified this as a Value Buy 7/2024 and scaled into this position at prices from $19.61/share to $25.45/share w/ last buy 11/14/2024. My avg cost was $21.50/share and the Buy out price was $31.25/share (announced 12/11/2024) a +46% gain I was led to this name from my Phibro Anl Htlh A (PAHC) position: 15x PE; 2.29% div Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, Phibro manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Currently, Phibro focuses on regions where the majority of livestock production is consolidated in large commercial farms such as the U.S., Brazil, China, Russia, Mexico, Australia, Turkey, Israel, Canada and Europe. My average cost on this is $10.13/share +107%; I have a total of 8 buys from 11/2023 to 1/2024 at prices from $9.43/share to $11.02/share. This has been a cyclical play w/ a similar run in 10/2020 to 7/2021 from $17- $29 +71% I saw that many of the stocks in the animal health care sector had low PE's and some paid dividends and others offered growth like Zoetis (a spin off from PFE). Then this news: Apr 29, 2024 Phibro Animal Health will acquire Zoetis' medicated feed additive (MFA) product portfolio, certain water soluble products and related assets for $350 million So I focused on other companies in this sector and PDCO came up on my list. --------------------------------------------------------------------------- Dentsply Sirona Inc (XRAY) is another company in the Dental sector selling at a 10x PE and pays a 3.43% dividend. I have started a tracking position(12/19/2024) and have not decided if I will scale into a much larger position. It seems like a value hold -------------------------------------------------------------------------------- Other top performers were the pipeline companies; Williams Companies (WMB) , Kinder Morgan (KMI) , Pembina Pipeline Cor (PBA) & Enbridge Inc (ENB) . WMB hit an all time high in 2024 and the other pipeline companies performed well too; WMB +74% YTD , KMI +67% YTD, ENB +25% YTD . WMB & KMI I have buys from 2020 & 2019 w/ an avg cost of $12.77 for WMB +322% and $12/share for KMI +100%. Other sectors that have performed well are health care REITs; Sabra REIT (SBRA) w/ 9 Buys 4/2023-5/2023 at an avg cost of $10.74/share +61% 12xPE and pays a 7% div; Healthcare Realty Trust Inc. (HR) 12 buys from 10/2023 - 4/2024 +22% 10.8x PE and pays a 7.46% div.. Been peeling off shares for both of these Other REITs; Cousins Properties Inc (CUZ) 10 buys from 3/2023 - 6/2023 avg cost $19.46 + 56% 11.4x PE pays a 4.25% div. Been peeling off shares .at $30/share or higher International Paper Company (IP) a good industrial buy; 9 buys 6/2023-7/2023 avg cost $31.13/share +73%; 34xPE 3.45% div so not cheap now but when I bought it was 17x PE (my upper range). Been peeling off shares. ----------------------------------------------------------------------------------------- With the $SPX having exceptional gains in 2023 +24% and in 2024 +25%, many of my holdings participated but also have several losers. I have learned to take losses like closed out INTC and sold high cost shares in BGS & LEG. I have doubled my position in LEG & BGS buying back shares after 31 days reducing my avg cost basis close to the current prices. New ideas for 2025/2026 is Cleveland-Cliffs Inc (CLF) as I have been scaling into this name as well as LEG. I did start two new tracking positions in 2024 Dogs Of The Dow: Dow Inc (DOW) 7.1% div yield & Johnson & Johnson (JNJ) 3.43% div yield. Will monitor these and scale into a position if/when that correction arrives. I did reduce my total positions to 90 down from 130. Also I keep most all of my gains inside the portfolio and periodically peel off shares from winners and cut losers more quickly now. I do expect a significant correction in 2025/2026 but also see Asset Inflation so stocks are the best hedge against that. My Oil & NG, gold, copper, basic materials and Ag land stocks all help w/ that and most pay dividends at/above the stated inflation rate. I did close out Anglo American Plc ADR (NGLOY) after holding 20 years. My annual ROI was around 9% just a bit less than what holding the $SPX would be. The dividend was not as attractive now and have been moving that money into more triple net Reits; W.P. Carey & Company Llc (WPC) 6.45% div yield & Saul Centers (BFS) with a 6.1% div yield. As an example I still hold a position in Freeport-Mcmoran Inc (FCX) I purchased during the 2009 crash at an avg cost of $9.74/share +290% over 15 years; that's only a 9.67% ROI/year about equivalent to the $SPX return per year. Finally my one best long term hold from 2010 is Armanino Foods (AMNF). This hit an All Time High earlier this week at $ 8.18/share; I have 14 buys from 1/2010-10/202 most of my shares were purchased at $0.67/share. That's a CAGR of 27.22%/year. I bought this because it always paid a dividend around 1% div yield and has had good revenue growth of around 9%/year over this 12 year period. AMNF is now my No. 2 portfolio position with Chevron Corp (CVX) my No 1. Still sitting on a lot of cash No 3 position in the brokerage account and 4x more sitting in a Treasury Money fund waiting to be deployed in a 2009 type market correction. ------------------------------------------------------------------------- Everybody has their own investment style, risk and objectives so no one methods is correct. I have found buying low PE companies that pay some type of dividend has worked for me. Look for reversion to the mean trades and/or cyclical plays if you can accumulate during the trough of the cycle. Have diversification and speculate on some out of the box potential value/growth stores and you may hit a AMNF. Have a Happy New Year & looking forward to some more opportunities in the market for 2025.