Today the market went on sale. You can tell when you look at any stock and its red. One interesting stock is Maxim (MXIM), currently at $21. I've talked about it before. From what morningstar says the company just submitted its financials for review. When that goes through expect the stock to take a jump. I'm expecting the company to raise its dividend another 20% and announce a major buy back. The company has over a billion in cash and no debt.
Another stock that looks interesting is Bank of America (BAC), currently at $29. The dividend yield is over 8.5%! Sure banks have all sorts of problems with sub prime, but that will blow over at some point. The long term earnings potential of the company is STRONGER now before the crisis (with the country wide acquisition).
Banks are very hard to value, so there is risk. However, this is a case where the long term potential of the company is strong and you get paid an amazing dividend while you wait. Better yet buy and never look at the price again. Just sit back and enjoy the dividend.
Last on my plate is Ebay, currently at $27. The company's US operations are in trouble. They are losing market share. However, I think that should be expected. Amazon's model is just better. At amazon you spend time reading reviews of the products. At ebay you spend time reading reviews of the seller. That's a big problem. However, low cost auctions will have their place. Also, in the rest of the world which isn't as developed ebay is growing rapidly. On top of that its paypal division is impressive. The most shocking thing is that value mutual funds are jumping aboard. The top institutional holder is dodge & cox! Ebay has gone value. Doesn't make a lot of cents to me, but I'm sure there are a lot of cents to be made.
Wednesday, June 11, 2008
Sunday, May 4, 2008
Wednesday, April 9, 2008
The markets are all over the place ...
Looking at recent market activity it really hits home how valuable cash is right now. Investments made in the next few months will probably have pretty good returns 3-5 years out. Now having the foresight to have cash on hand prior to a downturn is either lucky or a good business model (ex. look at BRK. They use extra cash to be able to back larger insurance policies that others can't.).
For the rest of us another trend shows its strength. Stocks that more investment value than speculation value have held up well and some have appreciated. Look at stocks like:
KO
JNJ
MMM
WMT
PEP
...
The list goes on and on. Investments in strong companies like these when the ecomony is booming can be used as a form of cash when parts of the economy sputter. Personally I rarely sell, but I am tempted to use cash from stable investments to go buy some growth stocks that were always too pricey for me in the past.
Remember being greedy when others are fearful is easier in good times than done in bad times.
For the rest of us another trend shows its strength. Stocks that more investment value than speculation value have held up well and some have appreciated. Look at stocks like:
KO
JNJ
MMM
WMT
PEP
...
The list goes on and on. Investments in strong companies like these when the ecomony is booming can be used as a form of cash when parts of the economy sputter. Personally I rarely sell, but I am tempted to use cash from stable investments to go buy some growth stocks that were always too pricey for me in the past.
Remember being greedy when others are fearful is easier in good times than done in bad times.
Tuesday, February 19, 2008
Dodge & Cox to Launch New Fund - Morningstar Fund Times
Dodge & Cox launches a new global (emerging?) fund
Dodge & Cox to Launch New Fund - Morningstar Fund Times
This fund company launches a new fund once every two decades on average.
Dodge & Cox to Launch New Fund - Morningstar Fund Times
This fund company launches a new fund once every two decades on average.
Monday, February 4, 2008
MXIM: Maxim Integrated Products Stock Report | Quote & News
Maxim looks cheap. +3.8% yield, 13 P/E, revenue growth and yield growth. The stock looks down because of the financial restatement (which caused it to get delisted). Should be a short term problem.
MXIM: Maxim Integrated Products Stock Report | Quote & News
I'd guess the stock will stay undervalued until the restatement is done, which the company thinks will be done in the summer (but I wouldn't be surprised it takes them longer). Long term holders shouldn't care. The yield is solid and they have $1 Billion with a 'B' in cash on their balance sheet. For a campany with a market cap of less than $6 Billion that's a lot. Expect a massive buy back after the restatement is done.
MXIM: Maxim Integrated Products Stock Report | Quote & News
I'd guess the stock will stay undervalued until the restatement is done, which the company thinks will be done in the summer (but I wouldn't be surprised it takes them longer). Long term holders shouldn't care. The yield is solid and they have $1 Billion with a 'B' in cash on their balance sheet. For a campany with a market cap of less than $6 Billion that's a lot. Expect a massive buy back after the restatement is done.
Subscribe to:
Posts (Atom)