FeedPosted Dec 31st 2009 4:30PM by Sheldon Liber (RSS feed)
Filed under: Forecasts, Competitive Strategy, General Electric (GE), Home Depot (HD), Berkshire Hathaway (BRK.A), Getting Started, Archer-Daniels-Midland (ADM), Options, Bargain Stocks, Chasing Value, Raytheon Company (RTN), E*TRADE (ETFC), EZCORP (EZPW), Williams Companies (WMB), Brasil Telecom (BTM) , Grubb and Ellis Co (GBE)
During my tenure at BloggingStocks I have expressed my opinion often about the contribution that dividends make to your overall return. Most shrewd investors, and especially "my pal Warren," know this and understand why I re-emphasize the point when I make my annual selections.
By now I hope you have had a chance to peruse my picks for 2010. If not the links below will give you another opportunity.
Continue reading Chasing Value: 2010 Dividends for Ten Stock Picks
Posted Dec 30th 2009 5:00PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Competitive Strategy, Archer-Daniels-Midland (ADM), Bargain Stocks, Chasing Value, Commodities, Agriculture, Stocks to Buy
How hungry are you? The world is becoming hungrier all the time and Archer-Daniels-Midland (ADM) seeks to fill that need.
It is one of the world's largest processors of oilseeds, corn, and wheat. It turns corn into syrups, sweeteners, citric and lactic acids, and ethanol to fill your tank too. ADM also produces wheat flour for bakeries and pasta makers; cocoa and chocolate products for confectioners; animal-feed ingredients for farmers, and malt for brewers. It operates one of the world's largest crop origination and transportation networks, through which it connects crops and their markets across the globe.
Continue reading Chasing Value: 2010 -- #7 Archer Daniels Midland
Posted Dec 30th 2009 3:30PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Products and Services, Management, Competitive Strategy, General Electric (GE), Market Matters, Bargain Stocks, Chasing Value, Stocks to Buy, Technology
Many retail investors have been shrieking as General Electric (GE) hovers around ten year lows and has gone nowhere all year while almost everything else has appreciated. GE is on hot lists and not lists for 2010.
It is one of my holdover picks from 2009 and if it does not improve in the next few days will be my only loser -- for the other, a winner, see: Chasing Value: 2010 -- #3 EZCORP.
Continue reading Chasing Value: 2010 -- #6 General Electric
Posted Dec 30th 2009 3:00PM by Sheldon Liber (RSS feed)
Filed under: Competitive Strategy, Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Berkshire Hathaway (BRK.A), Bargain Stocks, Chasing Value, Commodities, Williams Companies (WMB)
The first four picks were all from the contenders list, but here I reach back to earlier in the year, when in May, I wrote about why I thought Williams Companies Inc. (WMB) would outperform four other, more popular stocks.
I compared it to Apple Inc. (AAPL), Google Inc. (GOOG), Microsoft Corp. (MSFT) and Berkshire Hathaway Inc. (BRK.B).
During the past seven months this turned out to be true for half the period, but Apple came on strong and passed it by the second review.
Continue reading Chasing Value: 2010 -- #5 Williams Company
Posted Dec 30th 2009 1:00PM by Sheldon Liber (RSS feed)
Filed under: Management, Consumer Experience, Competitive Strategy, Home Depot (HD), Berkshire Hathaway (BRK.A), Lowe's Cos (LOW), Bargain Stocks, Chasing Value, Recession

This year's selections do not seem to offer the same dividend opportunities of years past and my first three choices have none at all. That changes with this pick. Home Depot (
HD) is distributing a 3.09% yield.
It's getting tiring to relate the demise of various companies to the residential market collapse, high unemployment and so forth, but certainly this company has been greatly affected. In addition, Home Depot was already struggling to recover from a "me first" CEO who happened to be forced out with the small stipend of $200 million, leaving behind shabby stores with questionable customer service while at the same time facing strong competition from Lowe's Cos (
LOW).
Continue reading Chasing Value: 2010 -- #4 Home Depot
Posted Dec 29th 2009 6:00PM by Sheldon Liber (RSS feed)
Filed under: Competitive Strategy, Starbucks (SBUX), Home Depot (HD), Next Big Thing, McDonald's (MCD), Bargain Stocks, Chasing Value, Stocks to Buy, EZCORP (EZPW)

One of the easiest stock picks for me to make this year is also one I made last year and for many of the same reasons. In a time of economic turmoil, high unemployment and tight liquidity, what could be more practical than pawn shops and cash advance outlets? EZCORP (
EZPW) made me money last year and I expect more
of the same as it continues to expand.
Most investors wish they could have gotten in on the ground floor of the hugely successful The Home Depot Corporation (
HD), McDonald's Corporation (
MCD), or Starbucks Corporation (
SBUX) franchises while they only had a few hundred outlets. In the case of EZCORP that is still possible.
Continue reading Chasing Value: 2010 -- #3 EZCORP
Posted Dec 29th 2009 4:40PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Forecasts, Competitive Strategy, General Electric (GE), Home Depot (HD), Berkshire Hathaway (BRK.A), Archer-Daniels-Midland (ADM), Options, Bargain Stocks, Chasing Value, Raytheon Company (RTN), E*TRADE (ETFC), EZCORP (EZPW), Williams Companies (WMB), Brasil Telecom (BTM) , Grubb and Ellis Co (GBE)

To arrive at this years ten picks I scoured business journals and editorials, online and off. I also ran through a series of stock screens repeatedly over the last few months filtering for five primary value metrics identifying stocks worthy of further consideration.
The 5 data points were price-to-sales (P/S), price-to-book (P/B), price-to-cash flow (P/CF), dividend yield and return-on-equity (ROE). I did look at other things but these were the subject of my initial focus.
Continue reading Chasing Value: 10 Stock Picks for 2010
Posted Dec 8th 2009 1:00PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Management, Competitive Strategy, General Electric (GE), Brazil, Deere and Co (DE), Bargain Stocks, Chasing Value
Only three weeks to go before the list of contenders are finalized into my ten picks for 2010. There were 14 before I added three more today and moved one of the stocks on the fence up, leaving another three still on the fence.
I continue to read everything I can get my hands on and recommend doing the same to anyone else seeking to do some stock picking. A lot of the recommendations I come across project possible appreciation of 10% to 15%, and that would be great, but I am seeking at least the potential to double that.
Continue reading Chasing Value: Ten stocks for 2010 -- Part 7
Posted Aug 6th 2009 5:00PM by Sheldon Liber (RSS feed)
Filed under: Ford Motor (F), Market Matters, Getting Started, Citigroup Inc. (C), Bargain Stocks, Stocks to Buy, MBIA Inc (MBI)

You can learn a lot from your elders and when it comes to investing, you best listen very attentively. I often refer to
'my pal Warren' in my posts and I credit Mr. Buffett's investment advice and parables over the years for much of my gains in 2009.
There is another mentor, though, one I have not referred to often but that I have gleaned some wisdom from in terms of value investing and courage, and that is
'my pal Sir John.' While Buffett has been very straight forward in his position that you should buy on fear and this was the year to do that, it was Templeton that preached buying far and wide and diversifying broadly into out-of-favor companies. As he did when he started out.
Continue reading Ford, Citi, MBIA, GBE and Sir John Templeton
Posted Jul 31st 2009 5:00PM by Sheldon Liber (RSS feed)
Filed under: Rants and Raves, Competitive Strategy, Microsoft (MSFT), Ford Motor (F), Market Matters, Money and Finance Today, Archer-Daniels-Midland (ADM), Chevron Corp (CVX), Nucor Corp (NUE), Options, BHP Billiton Ltd ADR (BHP), Wells Fargo (WFC), Bargain Stocks, Anglo American (AAUKY), S and P 500, DJIA, Intuitive Surgical Inc (ISRG), American Eagle Outfitters (AEO)

Where on earth can you buy things on sale for less than bargain prices?
Imagine that you were shopping for a nice shirt, or watch, or bicycle and you have been tracking the prices all year (or ten) and the thing finally goes on sale. You drive to the store and while you are in transit, unknown to you, the store manager puts a half price sticker on the item. You would be overjoyed with glee! To buy something at half the price you already thought was a bargain --
that would be amazing!The fact is that this year the stock market has provided that opportunity. This year for the first time in most of our lives, you were able to do that to a degree that we have not witnessed before and have only read about.
Continue reading Serious Money: The world's dumbest market
Posted Jun 29th 2009 12:00PM by Sheldon Liber (RSS feed)
Filed under: Microsoft (MSFT), Johnson and Johnson (JNJ), Chevron Corp (CVX), General Mills (GIS), Bargain Stocks, Serious Money, Stocks to Buy, Southern Company (SO)
Billions of investment dollars are sitting on the sidelines for fear of entering the market at the wrong time and losing more money after taking a bath last year. However, the market seems to have hit bottom last March and many investors missed the 40% gain from that point to now.
Market prognosticators are spewing out opinions faster than the public can grasp, or understand. I choose to stick with basic fundamental value propositions and ignore the noise.
I have been buying for the past eight months and riding the market waves, good and bad, to huge gains -- so far. Maybe I will be giving some back, maybe not, but I have also been encouraging readers to take something off the table, in several recent posts.
Continue reading Serious Money: Five high-yield, safe, diversified stocks
Posted Jun 22nd 2009 9:40AM by Sheldon Liber (RSS feed)
Filed under: International Markets, Competitive Strategy, Market Matters, BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP), Bargain Stocks, Serious Money, Commodities, Anglo American (AAUKY), Aluminum Corp of China ADS (ACH), Stocks to Buy, Best Stocks for 2009

It was reported on Sunday, June 21, that Anglo-Swiss mining company
Xstrata has proposed a merger of equals to the board of
Anglo American ADR (NASDAQ:
AAUK), hoping to create a new, more competitive mining giant. Rumors have been milling about for a while.
Together, Anglo American and Xstrata would have a market capitalization of approximately $68 billion, (AAUK's $35 billion + XTA.L's $33 billion) and be larger than
Rio Tinto plc ADS (NYSE:
RTP), which ended the trading day last Friday with a capitalization hovering over $42 billion.
Continue reading Serious Money: Anglo American - Xstrata merger?
Posted Jun 19th 2009 2:20PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Market Matters, Diageo plc (DEO), Bargain Stocks, Stocks to Buy

This should not shock anyone that has followed the market for any length of time or is simply a student of human nature, but
Diageo PLC (NYSE:
DEO) the largest distiller and distributor of alcoholic beverages in the world is moving up when the market is moving down.
The London Financial Times under the headline
Markets are giving the devil his due reports on two new independent US academic studies by Frank Fabozzi, a finance professor at Yale, and Harrison Hong, a Princeton professor, touting the benefits of investing in "sin stocks" associated with alcohol, tobacco and gaming. They surmise that many pension funds, and conservative investors "looking to maintain an aura of respectability." do not invest in these types of companies leaving them to others. These companies also tend to be more highly taxed and regulated, which limits competition somewhat.
Continue reading Sin stocks are blessed -- Diageo rewarding investors
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