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December, 2006: 4 11 22
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. |
12/4/06-Since the prior entry, our Classic Value (CV) pick, LPX, has been held over a year, and so it will be sold at the early market price tomorrow morning, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/02/05 to early 12/05/06 per share performance. Through close of business today, after subtracting a commission (while not counting any dividends), LPX has been down 22.54% in the past 12(+) months.
Also since the prior entry, our Classic Value (CV) pick, MFCO, has been held over a year, and so it will be sold at the early market price tomorrow morning, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/02/05 to early 12/05/06 per share performance. Through close of business today, after subtracting a commission (while not counting any dividends), MFCO has been down 29.49% in the past 12(+) months.
Despite the above losses and including the LPX and MFCO record to date, a 50/50 investment in the Classic Value and Leapin' Lizards, with each asset held for at least 366 days (or till a cash buyout or merger and sale, whichever first) would have provided an overall annualized performance of about 21%, around a 22.5% total return, after commissions, if dividends were included. Through today, just 31% of one's combined holdings would have been losses.
My top-ten equities for mention today are: BRK/A (or BRK/B); EME; ESV; FRD; HD; MM; TESS; VOL; WPO and ZONS.
The focus for the current entry is on a new Leapin' Lizards (LL) asset, Zones, Inc. (ZONS) (recent price $8.17). ZONS's trailing price to earnings ratio is 13.94. The asset's market-capitalization size is nano-cap: $108.25 million. Zones, Inc., has no dividend. The price to sales ratio is only 0.19. ZONS' price to book value is 2.34. There is positive free cash flow. Return on equity is 19.96%. Debt to equity is just 0.31. The current ratio is 1.60. ZONS' share price is up 63.14% in the past 52 weeks (vs. 10.40% for the S&P 500 Index). The stock has below average price to earnings, low debt, a very low price to sales ratio, and upward momentum in its favor.
Zones, Inc., will be added to our LL tracking portfolio at its market price as of early trading on Tuesday, 12/05/06.
12/11/06-Since the prior entry, our Classic Value (CV) pick, BNSO, has been held over a year, and so it will be sold at the early market price tomorrow morning, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/08/05 to early 12/12/06 per share performance. Through the close of business today, after subtracting a commission (while not counting any dividends), BNSO has been down 3.07% in the past 12(+) months.
Also since the prior entry, our Classic Value (CV) pick, UTR, has been held over a year, and so it will be sold at the early market price tomorrow morning too, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/08/05 to early 12/11/06 per share performance. Through the close of business today, after subtracting a commission (while not counting any dividends), UTR has been up 8.95% in the past 12(+) months.
My top-ten equities for mention today are: AMSF; BJS; BRK/A (or BRK/B); CAV; ESCL; ESV; HD; HPQ; ICAB; and PTA.
The focus for the current entry is on a new Classic Value (CV) asset, Cavalier Homes (CAV) (recent price $4.19). CAV's trailing price to earnings ratio is 6.58. The asset's market-capitalization size is nano-cap: $76.86 million. Cavalier Homes has no dividend. The price to sales ratio is only 0.25. CAV's price to book value is below average at 1.22. There is positive free cash flow. Return on equity is 21.78%. Debt to equity is just 0.16. The current ratio is 1.65. The shareholder equity to total assets ratio is: 0.56. This stock has low P/E, low P/S, and low debt in its favor. It meets Ben Graham value and safety criteria as a bargain stock.
Cavalier Homes will be added to our CV tracking portfolio at its market price as of early trading on Tuesday, 12/12/06.
12/22/06-This will be the latest entry for 2006, as I'll be out of town and not able to update this site till early 2007, at which time I'll give the 2006 year-end summary as well as the new Classic Value (CV) vs. Leapin' Lizards (LL) info.
Since the prior entry, our Classic Value (CV) pick, IAL, has been held over a year, and so it will be sold at the early market price on Tuesday, 12/26/06, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/15/05 to early 12/26/06 per share performance. Through 10 AM (Central Time) today, after subtracting a commission (while not counting any dividends), IAL has been up 21.26% in the past 12(+) months.
Also since the prior entry, our Classic Value (CV) pick, AMPH, has been held over a year, and so it too will be sold at the early market price on Tuesday, 12/26/06, removed from the CV open positions portfolio, and its closed position info recorded based on the 12/22/05 to early 12/26/06 per share performance. Through 10 AM (Central Time) today, after subtracting a commission (while not counting any dividends), AMPH has been up 20.89% in the past 12(+) months.
My top-ten equities for mention today are: BRK/A (or BRK/B); CHMP; EME; ESV; HD; SHLD; TESS; VLGEA; VOL; and ZONS.
The focus for the current entry is on a new Leapin' Lizards (LL) asset, Village Super Market, Inc. (VLGEA) (recent price $80.02). VLGEA's trailing price to earnings ratio is 14.60. The asset's market-capitalization size is micro-cap: $258.94 million. Village Super Market, Inc. has a 1.5% dividend, with a dividend payout ratio of 0.20. The price to sales ratio is only 0.25. VLGEA's price to book value is below average at 1.68. There is positive free cash flow. Return on equity is 12.20%. Debt to equity is just 0.19. The current ratio is 1.20. The asset is up 31.71% relative to the S&P 500 Index in the last 52 weeks. The shareholder equity to total assets ratio is: 0.57. This stock has below average P/E, low P/S, momentum, and low debt in its favor.
Village Super Market, Inc. will be added to our LL tracking portfolio at its market price as of early trading on Tuesday, 12/26/06.
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.