OK, I'm going to kick off another thread on ASX value stocks, got some good discussions last time but unfortunately died out, unfortunate there's so few value investors here..
Since my last post 3 months ago I'm now 100% invested in my new portfolio:
FLT - possibly worst buy I ever made, bought as EV/MC discount play and rushed to buy before ex-dividend, after reworking my calculation to add negative working capital to EV, EV/MC shot up over 100% and I sold promptly, lost 15%. Never again will I buy a company that consistently generate revenue and widely covered by analysts.. I'm still disgusted at myself to be enticed by dividend..
MND - bought as a play on cyclical downturn and massive EV/MC discount, price since popped 30%, will keep holding
EPW - bought as a play on low price multiples and has since popped 20% and sold
AAC - build a significant position around book value $1.60 (their true asset value is higher than this because their effort to build a premium brand won't be reflected in the intangibles), their key shareholder has shrewdly increased his share quietly in the last 5 years, price hasn't moved
ELD - bought as blue-chip turnaround and initial dividend play (I'm not aware of any stocks that hasn't outperformed the market after declaring an initial dividend), price hasn't moved
NZX - bought as spin-off play
For NZX I bought that today, somewhat iliquid stock and some seller filled most of my buy order in the last 10 minutes pushing the price back to 53cents, somewhat risky stock with high level of debt but it is to be expected in a spin-off and their cashflow can manage it, I went through the last 15 spin-offs in ASX and they all popped several hundred per cent in next few years, with exception of Attrium due to the cyclical mining sector. Management has skin in the game and even if the merger with Fairfax doesn't go through, I still think it is undervalued trading at ridiculously low multiples.
Any thoughts on my selection ? I'm also looking to invest one more, anyone care to discuss anything they have in mind?
On another note I been starting to look at outdoor media companies like APN outdoor, Ooh!Media and APN news & media, I think long-term this industry have potential but now they're not priced cheap, Ardent Leisure could be interesting too if it keeps falling..
Since my last post 3 months ago I'm now 100% invested in my new portfolio:
FLT - possibly worst buy I ever made, bought as EV/MC discount play and rushed to buy before ex-dividend, after reworking my calculation to add negative working capital to EV, EV/MC shot up over 100% and I sold promptly, lost 15%. Never again will I buy a company that consistently generate revenue and widely covered by analysts.. I'm still disgusted at myself to be enticed by dividend..
MND - bought as a play on cyclical downturn and massive EV/MC discount, price since popped 30%, will keep holding
EPW - bought as a play on low price multiples and has since popped 20% and sold
AAC - build a significant position around book value $1.60 (their true asset value is higher than this because their effort to build a premium brand won't be reflected in the intangibles), their key shareholder has shrewdly increased his share quietly in the last 5 years, price hasn't moved
ELD - bought as blue-chip turnaround and initial dividend play (I'm not aware of any stocks that hasn't outperformed the market after declaring an initial dividend), price hasn't moved
NZX - bought as spin-off play
For NZX I bought that today, somewhat iliquid stock and some seller filled most of my buy order in the last 10 minutes pushing the price back to 53cents, somewhat risky stock with high level of debt but it is to be expected in a spin-off and their cashflow can manage it, I went through the last 15 spin-offs in ASX and they all popped several hundred per cent in next few years, with exception of Attrium due to the cyclical mining sector. Management has skin in the game and even if the merger with Fairfax doesn't go through, I still think it is undervalued trading at ridiculously low multiples.
Any thoughts on my selection ? I'm also looking to invest one more, anyone care to discuss anything they have in mind?
On another note I been starting to look at outdoor media companies like APN outdoor, Ooh!Media and APN news & media, I think long-term this industry have potential but now they're not priced cheap, Ardent Leisure could be interesting too if it keeps falling..
