Blogvesting

Companies trading at below net cash on hand are favorite investigative targets of value investors. Back in the Depression era, and during the brief market bottom in 2009, such stocks were plentiful. These days, however, such net cash companies are typically trading below cash for very good reasons, most commonly, because they are losing money [...]

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John Paulson’s recent investment in casino stocks piqued my own interest in this sector, and I started looking for value in some of the smaller cap casino stocks. I believe that with the massive consumer retrenchment last year, 2009 should represent the generational low in casino earnings. Any casino companies that emerge from last year [...]

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An enduring principle in value investing is to buy at the point of maximum fear. When a company becomes embroiled in complicated and uncertain legal troubles, it becomes shunned by Wall Street, and its stock can often be bought at unbelievable bargains. Such stocks often rapidly regain their true value as soon as the legal [...]

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Over the weekend, I was inspired by several blogs (The bull case for Conn’s; How to Analyze Receivables & Inventory; Conn’s Inc.) to dig further into the annual reports of the company CONN. What I found was very interesting, and highlights the dangers of investing blindly solely on the basis of financial numbers, without peering [...]

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Share prices of companies that make industrial equipment tend to be very volatile. These companies are especially dependent on a healthy economy, and every time a new batch of economic statistics is released, the share prices of these companies gyrate wildly depending on the prevailing mood. However, to investors willing to take a longer-term perspective, [...]

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Harvest Natural Resources (HNR) is an oil producer whose major oil producing assets are located in Venezuela, where it is subject to confiscatory taxes or outright nationalization by Hugo Chavez. Its major attraction is it cash-rich and debt-free status. HNR has approximately $2.85 per share in cash free and clear. The rest of HNR’s value [...]

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Fresh Del Monte Produce Inc (FDP) is a vertically integrated producer of fresh and canned fruits and vegetables. While most fruits and vegetables require minimal processing and are typically shipped directly from local farmers to supermarkets over several hundred miles, some produce (notably bananas) are shipped over thousands of miles and/or require canning and extensive [...]

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Ball Corporation is a major manufacturer of metal and plastic packaging for food manufacturers, with a minor business in aerospace and defense. Almost 80% of revenues are derived from making aluminum cans for beverages, with the remaining 20% from plastic packaging and the aerospace business. A significant amount of revenue is derived from sale of [...]

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On 3/16 (Monday), I rebuilt a small position in GEOY at $18, in accordance with my previous estimate of GEOY’s intrinsic value at $18-$30. I sold the entire position the very next day at $19, thinking that manipulation by options traders will sink the stock price as we approached options expiration Friday. The very next [...]

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I have recently liquidated my entire position in GEOY for a 15% gain, shortly after the completion of the NGA certification process. While the certification provides $150 million in annual revenue to GEOY, ensuring that it will be able to cover expenses and removing the risk of bankruptcy, the risk of satellite failure as well [...]

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