Thursday, April 22, 2010

Adding to 2 Positions

I've taken advantage of this mornings sell off (I hope at least), and added shares of two portfolio holdings.

I added Etrade (ETFC) at $1.73. They reported solid earnings yesterday after the bell, and are well on their way back.  Unless a buyout comes, this is going to take some time, but I am confident that there is money to be made here.

I also added pretty heavily to Loews Corp (L) in the 37.70's and .80's.  You can buy Loews stock for basically the value of only their publicly traded assets, and they own so much more.  The market is determined not to fairly value this company, and I'm willing to wait.  It may take a big move by management for Wall Street to appreciate the value, and they have the resources to pull it off.  They are true value investors, and are waiting for the right thing.  I feel like I'm buy dollars for .70 here.  Their annual report is a good read if you have the time.  Also, take a look at this commentary from the Lonely Value Investor blog.  I really like reading this site, and its worth your time. 

There aren't many new names I'm looking at, but I have a lot of stocks I really like and currently own.  I'd rather buy more shares of current names, and will continue to do so if the opportunity presents itself.

Disclosure: Long ETFC, L

2 comments:

Anonymous said...

What are your feelings towards Leucadia National Corp?

Michael said...

LUK is a great company. In the same "group" as Loews and even Berkshire. Great management that understands how to allocate capital. Its all a matter of 1) if you agree with their investing style (value), 2)what assets they own, and 3)how the market is valuing the parent. I haven't taken a detailed look at LUK, but I know right off the bat they have number 1 and likely 2. Its just a matter of valuing them. The market usually discounts the value of the parent, and its up to management to unlock that value by putting more cash to work or returning it to shareholders. I'm personally just more familiar with Loews and am comfortable with what they own and feel its a good buy. When I get some time, I'll take a deeper look at LUK, and maybe it is something worth adding to the portfolio. Please feel free to add to the discussion if you're more familiar with it than I am. Thanks for commenting.