- Page 1/3
- Next Page
Stock Screening? He uses Globe Investor Gold and, as a contrarian, he looks for stocks that are down about 33% in the past year. Also looks to see if they have been listed for 10 years, as he only buys stocks that have been out there for 10 years. He'll then look at financial ratios. With the Globe filter, he throws in a few things on the screen along with a certain amount of revenues, and this gives him a bunch of stocks to look at. MorningStar is also quite handy as they have information going back a number of years.
This came out in January at about $11.50. The valuation was about $300 million. To him that was absolutely insane. The company had revenues under $20 million, lots of hope, lots of hype. The people who sold this to clients should have said that the price is way too high. In terms of IPOs, about 90% are down in value about a year later. Often you get a pop at the beginning, and then comes way down. The changes they had were pretty dramatic.
Has been on his watch list for years. Greece is their big growth prospect. They were having all kinds of difficulty with the Greek government. Recently the government capitulated to some degree. The company was threatening to leave the country. They've spent well over $1 billion already. They employed a lot of workers who demonstrated against the government. It's a fascinating contrarian play. If you buy into a stock like this, you have to be very, very patient.
Bought this about 2 years ago at $3.81. Retail, for the most part, is in the dumpster. This one has done okay, and is up about 20% since he bought it. Pays a dividend of $.05 a quarter. Has zero debt and skilled management. Internet sales have been going up like crazy, but they don't announce the numbers. He is happy to Hold it. Just lowered his target on it down to $14.24, from $16.24. Even with that, it may be a bit pie in the sky-ish. However, as more companies fold, that opens up space for them to get sales.
A very well-run company. Doesn't fit his criteria, but it is a great company. The stock price is way too high for him, as he buys stocks are under $10. Debt is low and they pay a dividend. Revenues are stable. For people who invest in a different way than what he does, he can see how they might like to own this.
Paid $10.46 a few years ago when he thought it was going to be taken over. John Chen basically says "These are my goals." and has been hitting them. When management does that, it gives him more confidence. They’ve had to completely turn around this huge, huge boat, which takes time. Revenues are way down from where they where before, but seem to be stabilizing to some degree and thinks they are going to go up, and there is going to be a positive bottom line. Can see this going well over $20.
(A Top Pick Sept 22/16. Down 46%.) Has been horrible, but this has a tendency to pop about every 3 years. They do digitalization for e-books, etc. When you listen to conference calls, it always sounds like they are going to be doing really well. Unfortunately, on the last conference call, they seemed to lose their confidence to some degree. There is a reasonable chance it could come down further in the tax loss season. Remains on his watch list, and he continues to buy it. Wouldn't be buying this today or tomorrow, but would wait to see if there is more tax loss selling.
A leader in its field, and Constellation Brands has just bought into it. That gives more credibility to the field. There are 2 ways to play this field. One is to buy the leader, and the other is to buy a smattering of the very junior ones, hoping to get huge gains. There is no question that marijuana is here to stay. Be very, very wary of investing in this sector.
Just reported results yesterday and made a huge amount of money, almost $500 million. He likes Prem Watsa. Like everybody else, he is not perfect. Took his hedges off earlier this year. They are very diversified, not just in insurance, but are in India, Ireland, etc. Wouldn't say this was cheap by any metric. He owns the preferreds. Wouldn't be buying now.
This is the time of year when people should be looking at portfolios, and think about taking tax losses. He takes most of his tax losses in May. At $4 a share, this is way above where he would've bought in. Look at the financials and why you bought in. Think about what is going on with the company. Take a close look at their debt levels. There is a reasonable chance that before the end of the year, there could be tax loss selling.
Investing.We are not too far off from the tax loss selling season, and he is looking for bargains. It is crazy what is going on now, making the number of stocks he can buy severely diminished. There are still some he can cherry pick, and hopefully by some good ones before the end of the year. If the US lowers the tax rate from 35% to 20% for the major corporations, as they say, it makes them more competitive. However, the US debt is about $20 trillion. You can go to the US Debt Clock, throw it on your computer, it is absolutely crazy. The average US taxpayer owes $170,000, and estimates are that the deficit is going to go up over another trillion dollars. What they are doing is great for Donald Trump, his family and his colleagues.