Stockmarket bounce is insignificant
In practice:
The market is cheap I tell you
Despite the recent bounce in the UK stock market, it’s still cheap.
The 200-point rise in the FTSE All-Share from 1,800 in early March to over 2,000 is trivial relative to its descent from 3,400 since 2006, so investors are still unenthusiastic about shares.
By comparing the price of shares [...]
Fag end investing
In practice:
Molins and Porvair, wheezing and puffing
Whichever way you look at it, Molins’ (MLIN) price earnings ratio is very low. The shares cost just one times last year’s earnings, or nearly 1.5 times the average of its last ten years of earnings. The share price is just one fifth of its book value, the accounting [...]
Carnival: Ready for recession
In practice:
Ripe for a lame pun and, perhaps, long-term investment
One of the laziest, most cringe-worthy indulgences a financial writer can lapse into is the lame pun about a company’s business. This is why Gold funds glisten, and cruise lines, well, I’ll avoid the temptation…
Carnival (CCL), which calls itself “the world’s most profitable vacation company,” is [...]
Another oppo in electronics
In practice:
Another day, another electronics company
Falling profitability at electronics companies is becoming a familiar theme. I mentioned Wolfson Microelectronics on Wednesday and Holders Technology on Thursday. Now it’s Friday I’m looking at Laird (LRD) where return on assets fell from 18% in 2007 to 4% in the year to 31 December 2008.
Because these companies supply [...]
Holding on for the cycle to turn
In practice:
Holders Technology in classic Ben Graham territory
Tiny Holders Technology (HDT ) looks like a financially sound company going very cheaply.
It supplies the electronics industry with laminates and materials to make the printed circuit boards used in mobile phones, transmitters, cars, medical devices and the aerospace industry.
The most recent annual report (for the year to [...]
Semiconductors and sustenance for value investors
In practice:
Wolfson ‘Interesting’ Microelectronics
‘Interesting’ can be a euphemism for beguiling, and Wolfson Microelectronics (WLF) is certainly an interesting company.
Profits fell sharply in the year to December 28 2008 as demand for its audio chips collapsed. In its recent annual report, chairman Michael Ruettgers doesn’t know how bad things are going to get so he’s preparing [...]
