“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker – you’re seeing valuations that the market is not appreciating. But it’s critical [...]
From the monthly archives:
August 2009
Lockheed Martin (NYSE: LMT) is a “global security company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems and products.” LMT is in a sector that has been hard-hit twice in a short time span. As the markets were weighing the impact on defense stocks of a change in [...]
In my last post I talked about potential buying opportunities in the near future that you might want to be ready for. Part of being ready for a pullback in the market is to have your valuations and company knowledge on standby and ready for when you should take action. Not every company I value [...]
The markets have seen a run-up of over 40% since their lows in March. According to Bespoke Investment Group the S&P has reached its highest P/E since the end of 2004, due to a combination of market optimism without the earnings to support it. It may be getting very difficult to find value plays out [...]
Goodfellow Inc. (TSE: GDL) is a remanufacturer and wholesaler of lumber products and hardwood flooring. They have over 7000 customers, mainly in Eastern Canada and the United States. I found them by conducting a screen querying profitable companies trading below book value per share with a trailing P/E under 10. Running some quick numbers got [...]
“So if the entire country became securities analysts, memorized Benjamin Graham’s Intelligent Investor and regularly attended Warren Buffett’s annual shareholder meetings, most people would, nevertheless, find themselves irresistibly drawn to hot initial public offerings, momentum strategies and investment fads. People would still find it tempting to day-trade and perform technical analysis of stockcharts. A country [...]
Insiders Indicate Better Valuations Ahead
August 22, 2009 · 0 comments
Insider selling to buying is at a new high as public company insiders are locking in profits from the recent market rally. Insider selling is currently more than 33 times the value being bought. At the same time the S&P is up almost 50% from the March 9th lows and trades at a trailing P/E [...]
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