Quick question for all the value investors

[Buffettology]

Hi ladies/gentlemen,

Just a couple quick questions, which are the main stocks you keep on your watchlists (including stocks you own)? I am looking to expand my watchlist, after culling a heap of companies lately off it lately.

Further, have any of you read "Trade like Warren Buffett" and thoughts? Its a more recent book I beleive, I just bought today. Interestingly, it apparently shows Buffett is not just a buy and hold investor. (which interests me, because I rarely buy and hold for the length of time most of his literature recommends).

Anyways, they are my only two questions.

Cheers

 

[barrett]

Thanks for the book tip, I saw that one at Borders but was wary.. I'll have to have a flick through.

One Buffett-style stock I can recommend watching is Austal (ASB), Mcap $432M. A market leading, very well-run company in the boatbuilding business. Recently they have been sold off, unfairly IMO, due to a) market selloff and b) temporary setback in one area of their defence contracting. These are the sort of circumstances I picked them up in three years ago (and still hold - one of my few "permanent" holdings). I truly believe this is an excellent company selling cheap.. may get cheaper in the short term depending on the market.. Also a Fat Prophets recommended stock from way back, and they still hold.

- Global market leader in manufacturing fast ferries. Based in WA with shipyard in USA and a smaller one in Tas.
- IP advantage due to proprietary trimaran hull design
- Large and expanding order book for civilian ferries
- Consistent track record of delivering on time and on budget - steady margins, growing order book = steadily expanding profits
- Expanding into defence market in USA, $200M Littoral Combat Ship in construction; $120M HSV troop/equipment transporter in design (prototype received rave reviews from US military);
- Top notch management (John Rothwell in Aus, Bob Browning in USA)
- Consistently win repeat business from all over the world. Ferries operating in 20 or more countries.
- After the selloff, PE now 8.9, dividend 5.4%

late last week 6.3% of Austal was bought at around current prices by Paradice, one of the best-performing Australian small cap investment funds with 35%pa return for the past 6 years since inception. For Buffett aficionados.. Paradice have a Phil Fisher style of investment so you can be sure the management side of things has been thoroughly checked out.

I'm not trying to ramp the company here, just sharing one of my favourites! Happy to provide more info if people are interested.

Can you also share one or more of your favourite Buffett stocks especially any that are nearing or around a good buying price at the moment?

 

[prana]

I havent read that book, but other books such as Buffetology, as well as his recent stake and offload of PetroChina does show that a lot of people have a 'belief' on what Warren Buffet is and isn't is not entirely based on facts.

Another example, I see people throwing around, 'would Warren buy this stock?' well no, in fact, he didnt buy many Australian stocks at all, so why are we investing in XAO listed stocks? Fact is, he did invest in mortgage stocks, investment banks etc. he saw them as 'highways' whilst many ran. At the end of the day, my take on what he owns and buys is also useless, because I am not he and will never be. So be it, but he definitely does not just rely on compounding all the time, every time, like everyone seems to claim he does.

 

[Buffettology]

Thanks Barrett, I will take a good look at it now.

As for my tips, I only hold 4 stocks at the moment, keeping a bit of cash spare.

I am holding JST, which I just topped up on yesterday. Latest retail figures I read were robust and the company is one of my favourites. Though, check out the thread on it, its a bit confusing how equity dropped so much last year.......the only thing that makes me a bit wary.

DEX is another I think is a good buy and has good fundamentals, but it has been on a mother of a downtrend for very little reason that I can spot!

I bought CCP in its recent decline near the one dollar mark, still think its good value for the long-run.

I only just bought WTF yesterday also, to me the fundamentals look good (but its very reliant on continuation of HUGE growth rates which are a bit scary at this time), I also thought (same as JST), that it looked good technically, until I recently discoverd what a double top reversal is! But Im still not sure!

So as you can see, I am not POSITIVE regarding my positions at the moment, but who can be in this market environment and global economic environment! I also beleive EQN is a good purchase if it falls below $5 based on current earnings projections and the future value of its Uranium stocks, however, Copper price is meant to fall due to overcapacity and falling demand in the US and Europe from what I read, and when this company comes into production, it will only exacerbate the problem.

BKL is my all-time favourite, but a little overvalued still.

Prana, Warren probably doesnt invest in Australia also because he is not completely aware of our market, though he should have based on our dollar appreciation! As far as I am aware, he rarely invested outside the US, until he recently aquired that firm from Israel? If Im not mistaken.

 

[barrett]

Thanks for the tips Buffetts, will take a look at those

 

[chilliaa]

Thanks for the book tip, I saw that one at Borders but was wary.. I'll have to have a flick through.

One Buffett-style stock I can recommend watching is Austal (ASB), Mcap $432M. A market leading, very well-run company in the boatbuilding business. Recently they have been sold off, unfairly IMO, due to a) market selloff and b) temporary setback in one area of their defence contracting. These are the sort of circumstances I picked them up in three years ago (and still hold - one of my few "permanent" holdings). I truly believe this is an excellent company selling cheap.. may get cheaper in the short term depending on the market.. Also a Fat Prophets recommended stock from way back, and they still hold.

- Global market leader in manufacturing fast ferries. Based in WA with shipyard in USA and a smaller one in Tas.
- IP advantage due to proprietary trimaran hull design
- Large and expanding order book for civilian ferries
- Consistent track record of delivering on time and on budget - steady margins, growing order book = steadily expanding profits
- Expanding into defence market in USA, $200M Littoral Combat Ship in construction; $120M HSV troop/equipment transporter in design (prototype received rave reviews from US military);
- Top notch management (John Rothwell in Aus, Bob Browning in USA)
- Consistently win repeat business from all over the world. Ferries operating in 20 or more countries.
- After the selloff, PE now 8.9, dividend 5.4%

late last week 6.3% of Austal was bought at around current prices by Paradice, one of the best-performing Australian small cap investment funds with 35%pa return for the past 6 years since inception. For Buffett aficionados.. Paradice have a Phil Fisher style of investment so you can be sure the management side of things has been thoroughly checked out.

I'm not trying to ramp the company here, just sharing one of my favourites! Happy to provide more info if people are interested.

Can you also share one or more of your favourite Buffett stocks especially any that are nearing or around a good buying price at the moment?

Sorry buddy but i disagree with you. Just looked at ASB 10 year EPS, they are all over the place. To justify as a buffet type stock you need to see consistent EPS increases over time (with maybe the odd slip up every now and then). How else can you try to give a future EPS value if the company doesnt have consistent EPS.