Anyone else willing to disclose their positions?
Yeah I'll disclose a few of my positions. While its fun to check the week to week price changes, I don't take them seriously at all. Most of my holdings satisfy two conditions - they possess a high return on invested capital, and have a high earnings yield. In the case of the former, I look at the Earnings before taxes, and divide it by working capital and fixed assets. The next is basically how cheap it is, and accounts for the debt of the corporation - thus I can compare highly indebted companies to those which are not...apples to apples.
Lastly, most companies I invested in are unpopular so wall street has hammered them down. For example, the for profit colleges are one of the dogs of wall street, and I own shares in Apollo Education group (APOL) which so far has netted me 25% since purchased in the end of 2013. One of my losers has been ITT tech (ESI), but has been hammered down due to these lawsuits. Once this passes, and I hold, the price will reflect its strong fundamentals. I also took a counter stance to Will Akman's view on Herbalife ( HLF), but so far am down due to a probe into the company. Once this has come to pass, it'll go back up. Another play I am taking a long approach on ( a higher P/E) is Express scripts - they will grow in the healthcare industry as they provide services. A few others I don't feel like discussing but I own : EBIX, and CHE, and taking a bet that menthol cigarettes don't tank with LO! All fundamentally good companies with long earnings histories and growth.
The one I am looking at is the spinoff of National Oilwell Varco. (NOV) A fundamentally strong company with trending earnings - it is spinning off its distribution business sometime in the first half of this year. I have performed a rough valuation of the company, and am still digesting 3 years of annual reports. Once the SEC paperwork is filed for the spinoff, I am going to read the details of the spinoff and buy the new company. Expectations at selling and a decrease in price initially as institutions and investors will dump the new company...think a reverse IPO where the price drops than over 2 years realizes its full entrepreneurial potential and is recognized. Joel Greenbaltt's "You can be a stock Market Genius" focuses on Special situation investing and spinoffs. In General what I will be looking for is a strong parent company, a spinoff that institutions will not want to own initially ( due to size, business etc), something insiders DO want ( so I'll look at stock compensation/ incentives). Lastly, there might be an asset play depending on the new spinoffs price. But since the 10B SEC filings aren't available, its still unknown to me. Oh yeah, Buffet has loaded up on NOV stock lately.
Other companies I am watching:
TFM - a wholefoods clone which, while priced highly, has a lot of room for growth.
TTWO - Take two entertainment which owns the Grand theft auto franchise. Their fundamentals are strong. Good return on invested capital, and price.
VALE - A brizilian mining company - cyclical thus unpredictable earnings. its priced based on poor 2013 earnings - but if priced to good years, it is trading at a MASSIVE discount to value. One good year of 1.03 EPS or even 3 $ per share, and you are looking at a stock that will double or triple in price.
Wishlist - a free subscription to valueline!
Yeah I'll disclose a few of my positions. While its fun to check the week to week price changes, I don't take them seriously at all. Most of my holdings satisfy two conditions - they possess a high return on invested capital, and have a high earnings yield. In the case of the former, I look at the Earnings before taxes, and divide it by working capital and fixed assets. The next is basically how cheap it is, and accounts for the debt of the corporation - thus I can compare highly indebted companies to those which are not...apples to apples.
Lastly, most companies I invested in are unpopular so wall street has hammered them down. For example, the for profit colleges are one of the dogs of wall street, and I own shares in Apollo Education group (APOL) which so far has netted me 25% since purchased in the end of 2013. One of my losers has been ITT tech (ESI), but has been hammered down due to these lawsuits. Once this passes, and I hold, the price will reflect its strong fundamentals. I also took a counter stance to Will Akman's view on Herbalife ( HLF), but so far am down due to a probe into the company. Once this has come to pass, it'll go back up. Another play I am taking a long approach on ( a higher P/E) is Express scripts - they will grow in the healthcare industry as they provide services. A few others I don't feel like discussing but I own : EBIX, and CHE, and taking a bet that menthol cigarettes don't tank with LO! All fundamentally good companies with long earnings histories and growth.
The one I am looking at is the spinoff of National Oilwell Varco. (NOV) A fundamentally strong company with trending earnings - it is spinning off its distribution business sometime in the first half of this year. I have performed a rough valuation of the company, and am still digesting 3 years of annual reports. Once the SEC paperwork is filed for the spinoff, I am going to read the details of the spinoff and buy the new company. Expectations at selling and a decrease in price initially as institutions and investors will dump the new company...think a reverse IPO where the price drops than over 2 years realizes its full entrepreneurial potential and is recognized. Joel Greenbaltt's "You can be a stock Market Genius" focuses on Special situation investing and spinoffs. In General what I will be looking for is a strong parent company, a spinoff that institutions will not want to own initially ( due to size, business etc), something insiders DO want ( so I'll look at stock compensation/ incentives). Lastly, there might be an asset play depending on the new spinoffs price. But since the 10B SEC filings aren't available, its still unknown to me. Oh yeah, Buffet has loaded up on NOV stock lately.
Other companies I am watching:
TFM - a wholefoods clone which, while priced highly, has a lot of room for growth.
TTWO - Take two entertainment which owns the Grand theft auto franchise. Their fundamentals are strong. Good return on invested capital, and price.
VALE - A brizilian mining company - cyclical thus unpredictable earnings. its priced based on poor 2013 earnings - but if priced to good years, it is trading at a MASSIVE discount to value. One good year of 1.03 EPS or even 3 $ per share, and you are looking at a stock that will double or triple in price.
Wishlist - a free subscription to valueline!
