11/04/2009

Attributes that warrant a closer look

First I wanted to find well run stocks posting great ROIC for the past 5 years not just the prior 12 months.Then I wanted to find companies selling at a discount to normalized earnings.

ICOC: ICO Inc manufactures specialty resins and concentrates, and provides specialized polymer processing services.

- 2.74% held by famed value investor Michael Price.

- Shares outstanding reduced year or year. -5,556,000 paid to purchase shares over the prior 12 months.

- Pre tax ROIC 12.82% 2008, 16.97% 2007, 13.66% 2006

- OI/EV % currently selling at a discount to prior 5 and 3 years earnings run rate. The stock based on the high ROIC in past years may be selling at a substantial discount to normalized earnings to be realized in future periods.

- EV/Price = 1.59, CFFO/EV = 27.26%, EBITDA/EV = 7.72%

- 73% off 5 year high, 3 month return = 18.10%, 52 week change – 14.09%

- Price to book, sales and CF are all trading at a discount to the prior 3 years

- Real estate owned nationally and internationally

- EV = 168 million


Negatives

Declining GP margins
YOY revenue down 39%

Also looking into GPX and ASGR. Sorry for the rushed post.

I don’t own shares of ICOC and need to finish the above data. Going to sleep now but will search for and introduce other high ROIC stocks (well run companies) over the past few years selling at a discount to normalized earnings.

LINK

http://www.shadowstock.com/ss_portfolio.html

3 comments:

Jae Jun said...

May be rushed but still good. I'll start doing some light reading on it as well.

ShadowStock said...

Thanks for comments,

I STRONGLY recommend all serious students of value investing to visit, study and use the material on your site

Old School Value

http://www.oldschoolvalue.com/

John

Inelegant Investor said...

Really impressive is the degree to which debt has been reduced over the last several quarters. Balance sheet is strong and company is well-positioned to benefit from an economic recovery