CSCX : Value in legal troubles

March 3, 2010

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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CONN : Value trap in a hidden business

February 15, 2010

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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GTLS : Profiting from energy independence

February 7, 2010

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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HNR : A commodity/inflation play

July 25, 2009

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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BIIB : Value in a biotechniology company

July 14, 2009

Biogen Idec (BIIB) is a biotechnology company with two major products, Avonex (an interferon), which treats multiple sclerosis, and Rituxan (a monoclonal antibody), which treats non-Hodgkin’s lymphoma. Near-term growth is likely to come from the drug Tysabri, another monoclonal antibody meant for treatment of multiple sclerosis. Tysabri was withdrawn from the market after several clinical […]

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FDP : A cheap food company

July 14, 2009

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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RGC : Liquidation at small profit

July 1, 2009

Regal Entertainment group owns the largest theatre network in USA, mainly under the Regal Cinemas and United Artists brand. I initiated this position due to the reputation of movies being a robust industry in a depression, and also because I had a price target of $15, which is a PE of 20 over its previous […]

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Ball Corporation : Defensive stock in the beverage industry

June 23, 2009

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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My new strategy and recent outperformance

June 21, 2009

To the 5 people who are still reading this blog, I apologize for not writing any posts for the past 2-3 months. I was experimenting with several new strategies incorporating a technical analysis component in my stock analysis. I felt that, as an amateur investor, I could not compete with professional stock analysts, all of […]

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Macro : The Geithner plan throws money at good banks and good investors

March 24, 2009

The latest banking rescue has been widely panned by the punditry, with even Krugman voicing his dismay, yet was warmly received by the markets. The pundits are correct : this plan will not rescue the bad banks. Instead, the new plan will grease the flow of credit into the real economy, and lift all banks, […]

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