11/2/13-Oops! In my last entry, I erroneously indicated my top five Dividend Value stocks as: CAJ; UVV; GLNG; IAG; and UVV. UVV should not have been listed twice. The ticker after CAJ ought to have been CSPI.
Since that entry, there have been no sales or sell signals among the stocks followed here.
Alphabetically, though in no particular order of merit, my latest top-five low price to book value stocks are: FDP; FVE; HNR; MSN; and UMC.
My new featured Low Price to Book Value equity is Harvest Natural Resources, Inc. (HNR) (recent price $4.77). HNR meets Benjamin Graham's bargain stock value and safety criteria.
Harvest Natural Resources, Inc. will be added to our nest egg at its market price in early morning trading on Monday, 11/4/13.
Alphabetically, though in no particular order of merit, my current top-five dividend value stocks are: BRKS; CSPI; GLNG; RDS/A; and UVV.
My new featured Dividend Value equity is Brooks Automation, Inc. (BRKS) (recent price $9.44). BRKS meets Benjamin Graham's bargain stock value and safety criteria.
Brooks Automation, Inc. will also be added to our nest egg at its market price in early morning on Monday, 11/4/13.
11/5/13-Since the last entry, there have been no sales or sell signals among the stocks followed here.
I want to mention something that has been on my mind for several weeks. As the market has gotten higher, perhaps somewhat overbought, fewer stocks are available that meet the strict Low Price to Book Value portfolio criteria for purchases. In addition, with various political and other influences affecting equities more of late, volatility seems to be relatively high compared with a long-term average level of stock price fluctuations.
I have sought a way of adapting to both circumstances better than has been possible with the Low Price to Book Value portfolio maintained since May, 2009. There have been diverse experiments in my approaches to stock investing in the past, some successful, others not, and while the less advantageous ones have been quietly dropped the better ones have been incorporated into how I pick, hold, and sell stocks in both our Low Price to Book Value and Dividend Value portfolios.
I want to endorse another experimental method. It may be useful when not so many securities meet the strict guidelines of either of those methods and when the market at times is more subject to hiccups than usual. I call it Low Book Dividend Plus. In this strategy:
In my experience with low price to book value stocks, they are a little safer if there is also a dividend. Stocks meeting the guidelines per #s 2 and 5 above also meet Ben Graham bargain stock criteria.
As is evident from #6 above, this approach is likely to involve more short-term trading than has been the case for the other two portfolios I am monitoring here. They are thus most appropriate for tax-deferred accounts, when available. They also thus give greater flexibility during times of heightened volatility, yet have the protection of a projected doubling in not so many years, in case results are not so satisfactory in more modest timeframes.
I began experimenting with the purchase and sale of stocks using these guidelines on 7/18/13, and, though it is too early to draw significant conclusions, the returns have to date been competitive with those of the other portfolios followed in this journal.
A current idea for an asset meeting Low Book Dividend Plus standards is: Sony Corporation (SNE) (recent price $16.88).
Sony Corp. will be added to our nest egg at its market price in early trading today, 11/5/13.
11/15/13-Since the last entry, there have been no sales or sell signals among the stocks followed here.
I continue to seek low price to book value assets in which to invest over the balance of 2013, intending to thus assure our total book value target despite having sold off a number of shares last month, as our national politicians were involved in the latest of their debt-defying and clownish circus acts.
Here is a fresh batch of securities that fill the bill. All meet Ben Graham value and safety criteria, based on low price to book value plus reasonable debt to equity levels. They each also have dividends. They are appropriate for one and/or the other of our book value portfolios, Low Price to Book Value and Low Book Dividend Plus.
Alphabetically, then, and in no particular order of merit, my latest top-five low price to book value stocks are: ISH; PKX; PZE; SNE; and UMC.
My new featured equity meets the criteria of our Low Book Dividend Plus portfolio. It is \International Shipholding Corp. (ISH) (recent price $26.76).
International Shipholding Corp. will be added to our nest egg at its market price in early morning trading on Monday, 11/18/13.
If the values present today with these equities persist, I shall before the year runs out likely be adding shares (or more shares) of each to one or the other of our low price to book value portfolios.
11/17/13-My current top five Dividend Value portfolio stocks are: CAJ; CSPI; RDS/A; STO; and VIV.
Similar to what was noted in the last entry (about several low price to book assets), if the values of these stocks persist, I shall before the year runs out likely be adding shares (or more shares) of each to our Dividend Value portfolio.
Meanwhile, my new featured equity from among them is Statoil, ASA (STO) (recent price $23.20).
Statoil, ASA will also be added to our nest egg at its market price in early morning trading on Monday, 11/18/13.
11/23/13-Since the last entry, there have been no sales or sell signals among stocks and portfolios followed here.
My current top five Low Price to Book Value portfolio stocks are: AUQ; COGO; FU; GURE; and NTWK.
If the values of these stocks persist, I shall before the year runs out likely be adding shares (or more shares) of each of them to our Low Price to Book Value portfolio.
Currently, my featured equity from among them is AuRico Gold, Inc. (AUQ) (recent price $3.70). Besides being a Benjamin Graham bargain based on its low price to book value and low debt to equity, AUQ has reportedly had significant insider buying over the last several weeks.
AuRico Gold, Inc. will also be added to our nest egg at its market price in early morning trading on Monday, 11/25/13.
While the equities cited in this entry are more risky than ones we usually suggest, they also have lower average price to value. While most of my low price to book stock recommendations tend to be at the high end of the range for Ben Graham book value bargains, generally between P/Bk 0.67-0.80, today's five have an average price to book value of just 0.44.
If trying to acquire a certain level of total equity book value (as I am), there is thus more bang for one's buck among these securities. Also, with them the upside potential is greater, once their net assets become better recognized. Still, caution is also appropriate, and one ought to do his or her own research and be genuinely comfortable with owning a portion of any such companies before placing the buy orders.
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.