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May, 2007: 6 13 20 28
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
5/6/07-Since the prior entry, there have been no open positions held for a year or more, so no sales are appropriate at this time.
However, effective 4/30/07, our Classic Value (CV) asset, Blair Corp. (BL), which had been added to the CV portfolio on 7/26/06 at a cost basis of $24.99 per share plus a commission, was bought out by Golden Gate Capital's Appleseed Topco subsidiary for $42.50 a share (with no buyout commission involved), for a 9(+) month gain of 69.39% (after subtracting for the initial commission and not counting any dividends). Accordingly, BL has been removed from the CV open positions portfolio and added to the record of closed CV positions.
My top-ten equities for mention today are: ASPV; AVTR; BRK/A (BRK/B); CET; CRWS; ELMG; PHG; ROCM; TRCI; and WDC.
The focus for the current entry is on a new Classic Value (CV) asset, EMS Technologies (ELMG) (recent price $19.11). ELMG's trailing price to earnings ratio is only 8.50. The asset's market-capitalization size is nano-cap: $293.19 million. EMS Technologies has no dividend. The price to sales ratio is 1.13. ELMG's price to book value is below average at 1.39. There is positive free cash flow. Return on equity is 9.67%. Debt to equity is 0.07. The current ratio is 3.83. The shareholder equity to total assets ratio is 0.73. The stock has low price to earnings and low debt in its favor. This asset meets Ben Graham bargain stock criteria.
EMS Technologies will be added to our CV tracking portfolio at its market price as of early tomorrow (Monday), 5/7/07.
5/13//07-Since the prior entry, our Classic Value (CV) pick, PORK, would have been held over a year and so, per our system, would be subject to sale and deletion from the open positions CV portfolio at this time. However, effective 5/8/07, Premium Standard Farms (PORK) was acquired by Smithfield Foods (SFD). The terms of the merger were favorable to holders of PORK shares. Including both cash buyout funds and shares of SFD provided to PORK shareholders as of 5/8/07, there had already been a 35.69% increase (after subtracting a commission but not counting any dividends) over our 5/11/06 PORK cost basis. Since, for simplicity as well as tax efficiency, it is our policy to sell CV and LL holdings after they have been in our portfolios for a year-and-a-day, we shall now sell the SFD shares acquired as of 5/8/07, in order to calculate the return on the original PORK purchase and because we obtained the SFD shares by other means than a careful analysis to determine that they were the best CV option then available. (There has been a slight change in the price of SFD shares since 5/8/07, but, as of the close of business on 5/11/07, they were up 35.99% over the PORK cost basis on 5/11/06.) Accordingly, all the SFD shares will be sold at the early market price Monday morning, removed from the CV open positions portfolio, and their closed position info recorded, based on the 5/11/06 to early 5/14/07 per share performance of our PORK and then SFD portfolio holdings.
My top-ten equities for mention today are: ABM; AGYS; EGR; FCPO; HNT; MHS; PCR; SYX; TESS; and VLGEA.
The focus for the current entry is on a new Leapin' Lizards (LL) selection, Factory Card & Party Outlet Corp. (FCPO) (recent price $11.96). FCPO's trailing price to earnings ratio is 17.90. The asset's market-capitalization size is nano-cap: $40.09 million. Factory Card & Party Outlet Corp. has no dividend. The price to sales ratio is just 0.16. FCPO's price to book value is below average at 1.23. There is positive free cash flow. Return on equity is 7.59%. Debt to equity is 0.27. The current ratio is 1.49. The stock price is up 66.11% in the past 52 weeks. The asset has low price to sales, low debt, and above average momentum in its favor.
Factory Card & Party Outlet Corp. will be added to our LL tracking portfolio at its market price as of early on Monday, 5/14/07.
5/20/07-Since the prior entry, no new assets have been held for a year. However, there was an oversight when I prepared the last entry. HDL, a Classic Value (CV) pick held since 5/8/06 was missed because, in transcribing the portfolio from one site to a more convenient one, the purchase date had been entered as 5/8/07 by mistake. I regret this, but do not think, now that the error has been caught, it has made a significant difference in the overall results. Since HDL has been held even longer than our usual hold period, it will be sold at the early market price Monday morning, removed from the CV open positions portfolio, and its closed position info recorded, based on the 5/8/06 to early 5/21/07 per share performance. Through the close of trading on 5/18/07, after subtracting a commission (while not counting any dividends), HDL has been down 16.92% in the past 12(+) months.
My top-ten equities for mention today are: IVAC; ASPV; ELMG; IDCC; INDM; IVAC; OMG; PRE; RAIL; and WDC.
The focus for the current entry is on a new CV selection, Intevac, Inc. (IVAC) (recent price $19.76). IVAC's trailing price to earnings ratio is low at 8.78. The asset's market-capitalization size is micro-cap: $422.75 million. Intevac, Inc., has no dividend. The PEG is 0.85. The price to sales ratio is 1.47. IVAC's price to book value is 2.67. There is positive free cash flow. Return on equity is 38.87%. Debt to equity is only 0.02. The current ratio is 3.28. The shareholder equity to total assets ratio is 0.74. This asset has low price to earnings, low P/E to growth, and low debt in its favor. It meets Ben Graham value plus safety bargain stock criteria.
Intevac, Inc., will be added to our CV tracking portfolio (and our actual nest-egg) at its market price as of early on Monday, 5/21/07.
5/28/07-Since the prior entry, our Leapin' Lizards (LL) pick, MRO, has been held for a year, and so it will be sold at the early market price Tuesday morning, removed from the LL open positions portfolio, and its closed position info recorded, based on the 5/22/06 to early 5/29/07 per share performance. Through the close of trading on 5/25/07, after subtracting a commission (while not counting any dividends), MRO has been up 64.57% in the past 12(+) months.
Also since the prior entry, our Leapin' Lizards (LL) pick, SFN, has been held for a year, and so it will be sold at the early market price Tuesday morning, removed from the LL open positions portfolio, and its closed position info recorded, based on the 5/22/06 to early 5/29/07 per share performance. Through the close of trading on 5/25/07, after subtracting a commission (while not counting any dividends), SFN has been up 20.52% in the past 12(+) months.
Since the last entry, our Classic Value (CV) pick, AWX, has been held over a year too, and so it will likewise be sold at the early market price Tuesday morning. It will be removed from the CV open positions portfolio, and its closed position info recorded, based on the 5/26/06 to early 5/29/07 per share performance. Through the close of trading on 5/25/07, after subtracting a commission (while not counting any dividends), AWX has been up 117.22% in the past 12(+) months.
My top-ten equities for mention today are: EME; FCPO; HHGP; MAN; NUHC; PCR; PMRY; RCMT; USTR; and VSEC.
The focus this time is on a new Leapin' Lizards (LL) selection, Hudson Highland Group, Inc. (HHGP) (recent price $21.00). HHGP's trailing price to earnings ratio is 17.60. The asset's market-capitalization size is micro-cap: $529.81 million. Hudson Highland Group, Inc., has no dividend. The price to sales ratio is only 0.38. HHGP's price to book value is 3.02. There is positive free cash flow. Return on equity is 6.92%. Debt to equity is 0.03. The current ratio is 1.75. HHGP's share price is up 84.86% in the past 52 weeks. The stock has low price to sales, low debt, and upward momentum in its favor.
Hudson Highland Group, Inc., will be added to our LL tracking portfolio (as well as to our personal nest egg) at its market price early on Tuesday, 5/29/07.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.