The cheapest six stocks on the market
In practice:
160% in six months ain’t bad
For the first time since February 2007, I’m starting our quarterly exercise in bottom fishing, ‘the cheapest six stocks on the market’, with good, even spectacular, news.
Each quarter Dr Keith Anderson, of the University of York, calculates the cheapest six stocks on the market using the Naked PE [...]
Cataclysm postponed, temporarily
In practice:
How inflation, population, and developing countries could take us back to the ‘70’s
You have to watch this two part video interview with Russell Napier on the FT site earlier this month:
Bear market bottoms
Cataclysmic bear market
If you do, come back, because I rang Mr Napier last week asking him to clarify his prophecy of doom. [...]
Delta galvanises value instinct
In practice:
A company with tangible problems and a commitment to fixing them
I’m grateful to Delta (DLTA ), a British engineer that operates mostly in Australia, for helping me get a step closer to deciding when it’s a good time to invest in a company with a gargantuan pension fund.
The answer may well be when it’s [...]
Investing against the tide
In practice:
Huveaux (again)
Rupert Levy, Huveaux’s financial director, returned my call this morning. I rang him yesterday primarily to ask about some of the notes in the accounts.
A quick recap: Yesterday I said this publishing and events company was cheap, but I was doubtful about its financial strength…
Note 15 confirms the company believes the “value in [...]
Huveaux, heaving itself back from the precipice
In practice:
How good is good?
Most studies I’ve seen demonstrate that the best returns come from the cheapest companies, and those with the strongest finances. Putting the two together, buying good companies at cheap prices, is common sense.
In practice it can be difficult to do because there is a trade-off between price and quality. It’s not [...]
The dash to trash
In practice:
Speculation is in the air
What a great Spring. The sun is out, the skies are blue, and unless you’ve been locked away in a bunker somewhere, investors and speculators have produced a remarkable turnaround in the stock market.
Here’s my plot:
The chart shows how we’re prepared to pay for UK shares (main market and [...]
OPD (again)
In practice:
Signs of overconfidence warn me off
Sorry about the absence of a post yesterday. OPD (OPD) waylaid me. It’s funny how it’s the shares you decide against that take the longest to appraise.
I wrote about the recruiter last week. It fits my pattern. The shares are dirt cheap. The 10 year price earnings ratio is [...]
Investing like Anthony Bolton
In practice:
Anthony Bolton, step-by-step
I remember being impressed by a chapter in a book by Jonathan Davis called Investing with Anthony Bolton, first published five years ago.
Anthony Bolton is an investment great, particularly in the UK, and a rarity. A fund manager who beat the average over decades, not years.
Davis provided a clear description of his [...]
OPD: A classic boom and bust share
In practice:
Another cheap recruitment company
The fortunes of recruitment companies depend on the fortunes of the economy, but OPD (OPD) looks like a boom and bust share par excellence. Founded by its current chairman and biggest shareholder, Peter Hearn, in the teeth of recession in the early 1990’s, its share price chart booms and crashes with the [...]
