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

Chasing Value: 2010 -- #5 Williams Company originally appeared on BloggingStocks on Wed, 30 Dec 2009 15:00:00 EST. Please see our terms for use of feeds.

"If you are looking for maximum rebound potential, you have to go lower down on the quality spectrum; it is typically the lower quality and lower priced stocks that will have the largest gains when the market rebounds," says turnaround expert George Putnam.

In his industry-leading service focused on distressed companies, The Turnround Letter, he looks at a package of 10 stocks recently trading below $5 per share while also offering "bundles of cash."

Here's his review:

Continue reading Ten cash-rich, low-priced turnaround stocks

Ten cash-rich, low-priced turnaround stocks originally appeared on BloggingStocks on Wed, 18 Feb 2009 14:00:00 EST. Please see our terms for use of feeds.

Since the stock market is down so much I have been buying something in the fourth quarter almost every week. I have been patient and have been expanding my watch list. The difficulty for me is that I feel like almost everything is on sale -- but is everything a bargain?

Maybe not; maybe I'm delusional. Perhaps that is because I am tuned into another time and place when I would have been dancing in the streets if I were able to acquire Anglo American ADR (NASDAQ: AAUK) or General Electric (NYSE: GE) for pennies on the dollar. Maybe that is all these stocks are worth? That is what Wall Street currently thinks. That is what Main Street currently thinks. There is a lot more bad news than good.

Then why is Warren Buffett buying, and Carl Icahn and Ken Heebner? After all, I'm just following in their shadows.

The reason is that most investors are simply focused on all the bad news. That is what has most folks' attention and that is making the market -- bankruptcies, billions of dollars in losses, government out of control, Wall Street out of control and more. There is also serious fear things will get worse. If you lost money in the stock market (all of us), or lost your job or your house or any combination of the above, then things look bleak and for now they are. However, we should not be investing for now; we should be investing for the future.

Consider the following elements that support a recovery in the next year. I do not mean a boom, just a recovery -- just a more positive investing environment.

1) By spring it is estimated the government will have poured $2 trillion dollars into an economy of $13 trillion over a 12-month period. Not only is this a market stimulus, but it may prove to be highly inflationary, and if so equities are a better place to be then cash.

Continue reading Serious Money: Can everything be a bargain?

Serious Money: Can everything be a bargain? originally appeared on BloggingStocks on Fri, 26 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

For 2009 I will be tracking a real portfolio created this quarter in scary times, when everyone is second guessing themselves, the market, and the economy. Last week I wrote Chasing Value: Annaly Capital Mgmt -- from watch list to buy noting that Annaly Capital Management (NYSE: NLY) was acquired, for among other things its 15% yield and basic stability. It trounced the market in 2008, but the yield by itself was very rewarding and I expect that to continue.

Yesterday General Electric (NYSE: GE) dropped over 8% from $17.39 to $15.96. This triggered a buy order I had in at $16.00, after a negative outlook by rating agency Standard & Poors suggested that there was the potential that GE could lose its prized AAA rating sometime in the next two years based on stress it was feeling on its balance sheet related to its financial services division, and GE's uncertainty in other businesses.

Continue reading Chasing Value: Add General Electric to the list

Chasing Value: Add General Electric to the list originally appeared on BloggingStocks on Fri, 19 Dec 2008 15:08:00 EST. Please see our terms for use of feeds.

If you do not own Valero Energy Corporation (NYSE: VLO) already, you were not listening last year when I was ranting and raving every month why this was a must-own stock. It was one of my favorites last year, remains one of my favorites now and looks to have an open road ahead of it in 2008.

Valero's profit margins were squeezed in the second half of 2007 by high crude prices rising while pump prices were stable, but that is likely to change, and I think the stock can continue to appreciate significantly. It may not change fast , as the economy is going through some rough spots. Also, VLO, which is reporting earnings on January 29, may still have some lingering margin issues.

Last year this was one of my top picks and jumped 36%. I rarely make specific predictions as analysts tend to do, but I feel comfortable stating VLO can beat all the major indices. Everything I liked about Valero last year is still in play now, so I'm letting this winner ride.

Continue reading Chasing Value: Valero Energy (VLO) is just so refined

Chasing Value: Valero Energy (VLO) is just so refined originally appeared on BloggingStocks on Fri, 04 Jan 2008 17:04:00 EST. Please see our terms for use of feeds.

Continue reading An 11th stock under $10: Skyworks Solutions

An 11th stock under $10: Skyworks Solutions originally appeared on BloggingStocks on Thu, 29 Nov 2007 17:35:00 EST. Please see our terms for use of feeds.

Continue reading 10 Stocks Under $10: Allos Therapeutics (ALTH)

10 Stocks Under $10: Allos Therapeutics (ALTH) originally appeared on BloggingStocks on Thu, 29 Nov 2007 15:58:00 EST. Please see our terms for use of feeds.

General Moly

Continue reading 10 Stocks Under $10: General Moly (GMO)

10 Stocks Under $10: General Moly (GMO) originally appeared on BloggingStocks on Thu, 29 Nov 2007 15:03:00 EST. Please see our terms for use of feeds.

Ampal-American Israel

Continue reading 10 Stocks Under $10: Ampal-American Israel (AMPL)

10 Stocks Under $10: Ampal-American Israel (AMPL) originally appeared on BloggingStocks on Thu, 29 Nov 2007 13:11:00 EST. Please see our terms for use of feeds.

Art Technology Group

Continue reading 10 Stocks Under $10: Art Technology Group (ARTG)

10 Stocks Under $10: Art Technology Group (ARTG) originally appeared on BloggingStocks on Thu, 29 Nov 2007 12:33:00 EST. Please see our terms for use of feeds.

Incyte Corp.

Continue reading 10 Stocks Under $10: Incyte (INCY)

10 Stocks Under $10: Incyte (INCY) originally appeared on BloggingStocks on Thu, 29 Nov 2007 11:57:00 EST. Please see our terms for use of feeds.

Continue reading 10 Stocks Under $10: Medical Staffing Network Holdings (MRN)

10 Stocks Under $10: Medical Staffing Network Holdings (MRN) originally appeared on BloggingStocks on Thu, 29 Nov 2007 11:11:00 EST. Please see our terms for use of feeds.

Brigham Exploration

Continue reading 10 stocks under $10: Brigham Exploration (BEXP)

10 stocks under $10: Brigham Exploration (BEXP) originally appeared on BloggingStocks on Thu, 29 Nov 2007 10:47:00 EST. Please see our terms for use of feeds.

Continue reading 10 stocks under $10: CBIZ Inc. (CBZ)

10 stocks under $10: CBIZ Inc. (CBZ) originally appeared on BloggingStocks on Thu, 29 Nov 2007 10:02:00 EST. Please see our terms for use of feeds.

As its name would imply, TriQuint Semiconductor (NASDAQ: TQNT) is in the chips business. The company maintains a niche in the competitive field by using materials other than silicon to manufacture circuits for use in cell phones, fiber-optic equipment, and other technology. Specifically, TQNT manufacturers its devices with gallium arsenide (GaAs), which can operate faster and more efficiently than its silicon rivals.

After a rough fall from the top along with the rest of the technology sector during the early part of the decade, TQNT has started to show some renewed strength. The equity's relative strength compared to the S&P 500 Index has been impressive of late, with the shares outperforming the broader market since early April.

Continue reading 10 stocks under $10: TriQuint Semiconductor (TQNT)

10 stocks under $10: TriQuint Semiconductor (TQNT) originally appeared on BloggingStocks on Thu, 29 Nov 2007 09:41:00 EST. Please see our terms for use of feeds.

Continue reading 10 stocks under $10: Bruker BioSciences (BRKR)

10 stocks under $10: Bruker BioSciences (BRKR) originally appeared on BloggingStocks on Thu, 29 Nov 2007 08:43:00 EST. Please see our terms for use of feeds.

This week's Barron's examined Harley-Davidson (NYSE: HOG) as a value play. Having written multiple posts enumerating many of the same points over the last couple of months, it seems that there is not much left to be said, except to simply lay out the Harley Bulls vs. Bears points.

The Bull story is that Harley-Davidson remains a world-class brand name, selling at a discount to its historic P/E and the average of the market. It has a high 40% return on equity, a clean balance sheet, excellent management, double-digit growth in foreign markets, and will maintain its profit margins through its carefully managed (now reduced) production cycles. It also has relatively predictable income from the sale of replacement parts, licensed products and its finance company.

The Bears think the Bulls are full of it, and that Harley's past its prime just like the Baby Boomers that continue to be the lifeblood of the company. The average buyer is a 46-year-old white male, and that market can not sustain Harley going forward. They also argue that, costing an average of $14,000, these bikes are the wrong product in a market where consumer discretionary spending is waning as talk of a possible recession lingers on.

Continue reading Chasing Value: Barron's likes Harley-Davidson too

Chasing Value: Barron's likes Harley-Davidson too originally appeared on BloggingStocks on Mon, 26 Nov 2007 15:50:00 EST. Please see our terms for use of feeds.

The last time I bought Harley-Davidson (NYSE: HOG) I paid $18 a share and it is one of our oldest holdings. Today, I finally bought some more. I probably share way too much personal information with readers of BloggingStocks but I just can't bring myself to suggest to people something I would not do myself, and in any case my readership is not large enough to move the market (nor is the few shares we acquired.) Too many advisers are promoting stocks they themselves would not touch with a ten foot pole.

Harley is near a 52-week low of $46.15, closing yesterday at $48.59. Management trimmed production levels recently to better balance with demand after years of very healthy increases. It was bound to overshoot demand at some point and it is wise to moderate production. HOG had reached its 52-week high of $75.87 last November (2006). I am not looking for miracles with this purchase. I am looking for a sound business with good management, at a value price and solid prospects, and Harley-Davidson is all of that, and then some. A patient investor need not expect anything more than a return to its high sometime over the next three years.

Continue reading Chasing Value: Harley-Davidson (HOG) looking on down the road

Chasing Value: Harley-Davidson (HOG) looking on down the road originally appeared on BloggingStocks on Thu, 20 Sep 2007 14:50:00 EST. Please see our terms for use of feeds.

This market is either a bargain hunter's paradise or a trap for the gullible.

As Bloomberg News notes, shares of software companies in the S&P 500 are trading 20.8 times their estimated profit, their lowest level since at least 1995 and industrial companies trade at 18.4 times earnings, lower than their average of 23.4 this decade. The S&P 500's price-to-earnings ratio of 16.8 for August was the lowest since November 1995, according to Bloomberg.

Echoing the sentiment of many bulls, AIM Investments' Fritz Meyer told Bloomberg that, "The market's probably seen the worst of it" and that the Fed will "ultimately ride to the rescue."

Really?

The housing market isn't improving any time soon. Retail sales are lackluster and consumer confidence remains shaky. And I'm not so sure that the Fed is too eager to ride to anyone's rescue. Chairman Ben Bernanke, as I've argued before, doesn't seem like he's eager to cut rates though the pundits say something will get done even if the Fed has to hold its nose.

Expectations are high which means that the potential for disappointment is huge. Today's bargains may stay cheap for quite some time. That doesn't mean people should avoid the market entirely. They just need to keep their expectations realistic.

Stocks are at their cheapest levels in 12 years originally appeared on BloggingStocks on Tue, 04 Sep 2007 16:45:00 EST. Please see our terms for use of feeds.

Talk about unloved, Headwaters Incorporated (NYSE: HW) is so far down you would think they were a homebuilding hedgefund that wrote their own sub-prime loans and kept them. In the spring of last year this once high flyer was trading at $40, but yesterday it closed at $15.67. That's a wild ride for anyone that held on until now. So here's the good news: now it's a value proposition. Now it's worth looking at. HW was called to my attention many times in recent history but I always felt it was a good company that was too expensive. Perhaps now it is a good company that is being unduly punished.

Before I get into the promising part of the story I want to share my greatest apprehension. Last week the company announced that Chief Financial Officer Scott Sorensen was resigning and it would bring his predecessor Steven Stewart back from retirement to be the new CFO. It is never a good sign when there is a shake up in the CFO's office. We do not know if Sorensen was pushed out to make room for Stewarts return and "stewart-ship" in turning the ship around or that Sorensen is abandoning a sinking ship and Stewart was brought back as the only way to keep the stock afloat. As an Enron loser I will always be watchful of management shuffling.

Continue reading Chasing Value: Headwaters Inc. (HW) an under water opportunity

Chasing Value: Headwaters Inc. (HW) an under water opportunity originally appeared on BloggingStocks on Wed, 22 Aug 2007 18:30:00 EST. Please see our terms for use of feeds.