Category Archives: Stock Analysis

ITT: Three Good Companies, One Low Price

In February, I wrote a post on the conglomerate ITT (ITT)and its spinoff plan into three separate companies, Defense, Water, and Industrial Products.  The market loved the announcement, sending shares of the company from $51 to a high of $64. … Continue reading

Posted in Special Situations, Stock Analysis, Value Investing | Tagged , , , | Leave a comment

Printing Dollar Bills For 60 Cents at Lexmark

A few weeks ago I opened a position in Lexmark International (LXK).  At around $30 per share, I think the company is ridiculously cheap. Despite having a market cap of over $2B, there really aren’t many people writing about the … Continue reading

Posted in Stock Analysis | Tagged , , | Leave a comment

Merger of Rivals Gives CVS Caremark Advantage in Drug Wars

The recently announced merger of Express Scripts (ESRX) and Medco Health Services (MHS), two of the largest pharmacy benefit managers (PBMs) provides an excellent opportunity for CVS Caremark (CVS) and their investors. As I wrote previously, I think CVS is … Continue reading

Posted in Stock Analysis | Tagged | Leave a comment

CVS Caremark Feeling the Heat

Last summer, the Miami Heat won a fierce free agent battle to sign LeBron James, arguably the best basketball player on the planet. He was to be teamed with the Heat’s incumbent superstar, Dwyane Wade, one of the most dynamic … Continue reading

Posted in Stock Analysis | Tagged | Leave a comment

Mergers, Activist Widows, and Piles of Cash: An Update on 2 NCAV Stocks

Investing in companies selling at a discount to their assets requires a keen eye to monitor ongoing events. In March, I posted about 3 stocks selling below their NCAV.  Since then, two of the stocks have had significant developments. At … Continue reading

Posted in General, Stock Analysis, Value Investing | Tagged , | 2 Comments

ADDvantage Technologies Group: Bad Quarter, Good Price

ADDvantage Technologies Group (AEY), a distributor of cable equipment (think set top boxes, encoders, etc) to large and small cable companies, reported a nasty looking Q2 earnings report last week . Sales were down 16%, margins decreased, and every product … Continue reading

Posted in Stock Analysis | Tagged , | 6 Comments

Seeking Value in Barron’s Leveraged Buyout List- Part I

Last week, Barron’s published an article featuring 27 potential LBO candidates. Easier credit, low rates, and growing cash piles are increasing private equity activity and make these 27 companies attractive targets. Using historical financial statements, I evaluated each of the … Continue reading

Posted in Stock Analysis | Leave a comment

ITT Spinoffs Create Potential Opportunity for Patient Investors

Recently, industrial conglomerate ITT (ITT) announced they will split the company into three separate businesses:  Defense, Water, and Industrial Products (The “New” ITT). The stock immediately jumped 20% in anticipation of the spinoffs, which are expected to be completed by … Continue reading

Posted in Special Situations, Stock Analysis | Tagged , | 6 Comments

Stanley Furniture Part II: No Margin of Safety in This Armoire

As value investors, we are always seeking a Margin of Safety. The MoS can be found in several different areas, including normalized earnings power, discounted cash flow, or hidden real estate or land values. I wrote last week that based … Continue reading

Posted in Stock Analysis | Tagged , | 2 Comments

Stanley Furniture and the Perils of Standardized Financial Data

One of my favorite things about investing is looking at the financial statements of different companies to find really good businesses. To save time, I usually start by looking at the standardized financials on sites like Yahoo Finance, Morningstar, or … Continue reading

Posted in Stock Analysis | Tagged , | 1 Comment