Best Buy (BBY) – Too cheap to ignore

June 15, 2011
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They do say that value opportunities are usually found in small, out of the way places. I have found this to be true, but sometimes even large companies we’ve all heard of can hold significant value. Best Buy has a free cash flow yield of roughly 15.8% as of this writing, once its excess cash […]


AMCON (DIT) – An attractive convenience store supplier

June 8, 2011

AMCON Distributing Co. is a wholesale distributor of consumer products, which constitutes the bulk of its business, and also runs fourteen health food stores. The wholesale segment is the 9th largest in the country and provides mainly tobacco products, but also candy, beverages, paper products, health & beauty, frozen foods, and institutional food services. It […]


Revlon (REV): High debt, but positive developments

April 29, 2011
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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 […]


Supervalu: Speculating in a grocery store with indigestion

December 22, 2010

I find very often that I seem to be the one who is interested in the investments I’m interested in. Certainly that is true of the River Rock and Mohegan casino bonds, where I seem to be the only person on the Internet who has even considered their investing attributes. So, when I find people […]


American Greetings’ Recent Decline is an Overreaction

October 2, 2010

I have previously expressed an optimistic view on American Greetings (AM), based on its attractive price/free cash flow. Last Wednesday, American Greetings announced earnings that were substantially down from one year ago, and the stock was punished by nearly 10%, although it has recovered somewhat since then. Now, Ben Graham reminds us not to place […]


Say Hello to American Greetings

June 14, 2010
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I am frequently surprised by the places where I find promising looking stocks, but really I shouldn’t be. Value can theoretically be found in any sector, although the newer and developing sectors are unlikely to hold much in the way of reliably underpriced stocks, since there is so much unpredictability in the future course of […]


Care about what other people don’t, and you’ll earn what other people don’t (Conn’s)

March 12, 2010

I was discussing value investing on a forum I frequent, and an objection someone raised to value investing is that everything that is knowable about a company is rapidly processed and analyzed by people who are smarter than you and have larger resources and bigger staffs. In other words, that markets are efficient, although he […]


Ross Stores: A Cheap Seller of Cheap Goods

December 23, 2009
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A great deal of value investing is the process of elimination. Warren Buffett, when asked how he finds undervalued stocks, simply replied “Start with the A’s.” But in most markets only a small fraction of securities count as underpriced on an absolute basis, so value investing requires wading through an endless sea of crap in […]


Quiksilver has Heavy Debt-al Poisoning

December 3, 2009

Since I last proposed Callon Petroleum bonds, and following my success with the Bon-Ton junk bonds, I’ve been considering focusing more attention on this part of the market. Junk bonds, of course, offer massive yields, higher than nearly all dividend-paying stocks and certainly higher than normal bonds; however, defaults are a constant worry and the […]


Copper pennies and arbitrage (Retail Ventures and DSW).

August 8, 2009

My good friend Mike (here and here) recently left a comment about copper mines, which got me thinking about copper pennies. In 1982, the US Mint stopped making pennies out of 95% copper, and started making them out of copper-plated zinc. Even now that the price of copper dropped back down, copper pennies presently contain […]