11/24/2009

Share repurchases at depressed prices

The list was further refined with the following

No dilution:
1)Stocks with an average 3 year shares outstanding / trailing 12 months >.97

Strong Balance sheet:
2)Enterprise value (market cap - cash + total debt)/ market capitalization < .90

Only stocks reporting a negative return over the prior 12 months
3)52WkChng<0

The results are as follows

5 comments:

Tony F. said...

You might be interested to read about
FNET: http://classicvalueinvestors.blogspot.com/2009/10/due-diligence-is-your-job.html

For what it worth, i don't have an opinion of it.

ShadowStock said...

Thanks for the link. Also the author, Mariusz Skonienczny has written a solid investing book worth reading , “Why Are We So Clueless about the Stock Market?. I will soon provide a review and summary on “Why Are We So Clueless about the Stock Market?

But back to FNET

I first mentioned FNET on seeking alpha as a cash bargain February 12, 2009 for .41 cents. See link below.

http://seekingalpha.com/article/120904-four-net-cash-bargains

The recent list was to help indentify company’s buying a large amount of shares relative to their float. I need to review the 52 week change.

John

Carrigaline said...

I left a comment here, it looks like it didn't go through.

I have been following UAHC and have an investment thesis written up on my blog http://carrigaline.blogspot.com/

Any thoughts would be very welcome.

ShadowStock said...

Hi Carrigaline

Thanks for the useful link on UAHC. The liquidation value for UAHC is clearly greater than the current price.

I guess buying a basket of these ideas would work best. I will look more closely. Thanks again.

How did you find the idea?

Good luck
John

Carrigaline said...

I use a process similar to yourself. On my brokerage account, there's an excellent advanced search function that lets me filter stocks based on almost every criteria. I usually do "Net-Net", stocks reaching new lows and insider buying searches to give me some ideas.

Everytime I come across a stock that interests me, I go to the SEC site, get the RSS update link and add it to my RSS reader. That means when a new filing is made, it gets sent to me directly. This is really useful since it means you don't have to manually check for updates on every stock you're interested in.

With so many ideas, the trick is as Warren Buffett says is knowing when to bat!