I recently examined Revlon (REV), a makeup company which has had a spotty and debt-laden history but which has turned the situation around in the last four years, assisted by substantial overseas growth. Although the firm is still dealing with the debt that Ron Perelman saddled it with during its LBO, it offers a free […]
It was announced yesterday that Smart Modular Technologies (SMOD) would be taken over by a private equity firm for $645 million, or $9.25 per share. When I recommended it here on January 3, the price was $5.94. Not bad for a few months’ wait, I think.
I have often found compelling values in rural telephone companies, such as Windstream and Qwest (now acquired by CenturyLink, as they throw off large amounts of free cash flows and are kind enough to produce dividends. My latest discovery in this area is Consolidated Communications (CNSL), which pays 8.4% and which has a free cash […]
Since my last foray into the paper industry with Boise Inc., I thought it would be appropriate to review the rest of the sector. After some searching, I have settled on Domtar (UFS). Domtar is the largest producer of uncoated freesheet paper in North America, and also a producer of wood pulp, with operations in […]
Dell, although not a company that fires the imagination, has a market cap of 28 billion, of which 12.5 billion consists of cash and investments that the company does not seem to particularly need. Dell’s free cash flow, not counting investment income, came to 2.86 billion last year, representing a yield of 18.5%. Dell will […]
Several of my readers have written me requesting my opinion on the recent downgrade of the River Rock Entertainment Authority casino bonds that fall due November of this year. The effect of this downgrade has pushed the price of the bonds from the 94 range to the 88 range based on recent prices. I found […]
As I generally adopt a bottom-up investing policy, and go into investing without any preconceived notion of what sector my stocks are going to be in. As a result, I am often surprised at the odd niches where attractive stocks hide. However, Mac-Gray Inc. (TUC) is one of the more unusual ones. They operate laundry […]
I have discussed United Online several times on this site, and noted that it has apparently attractive dividends and free cash flows, but that the loss of a post-transaction marketing program has affected their free cash flows in such a way that a prudent investor should wait and see how they regain their traction. As […]
It is only natural that the stock market, having doubled since the March 2009 low, would seem to be running a little short on bargains. And I have a sense, based on purely anecdotal observations, that optimism in the market has reached a local peak in that companies have been punished by the market for […]
One of the great debates among fundamental investors, whether they are value investors or whether they should be value investors, is the question of bottom-up or top-down. The top-down approach involves examining the economic outlook, the state of the financial markets, and the trends among the sectors, in order to determine the best stocks in […]