Friday, July 2, 2010

Adding to Current Positions

Lots of panic out there this week.  As value investors, we welcome this type of action.  All the talk of double-dip recession, another depression, etc.  I'm sure you've heard all of it.  With my time horizon, and hopefully yours, I'm quite confident the stocks I hold will be much, much higher by the time I'm ready to sell them.  The problem is we're becoming more and more programmed for instant gratification, and thus time horizons have become shorter and shorter.  This all plays into Wall Street's hands by the way.  More trading = more commissions.  The key as always, is spotting value in companies and taking advantage of a market that is full of fear and is ignoring these stocks.  But you do, however, have to know what to look for.

I added General Growth Properties (GGP) Wednesday in the mid 13's.

Late today I added Tii Network Technologies (TIII) at 1.48, and Pfizer (PFE) at 14.15.

Tii completed what appears to be a good acquisition that will immediately add to earnings.  The stock is still trading at less that half of book value.  Lightly traded stock, so you have to deal with that.  I'll continue to buy if it stays under 1.50.

Pfizer hit a fresh 52 week low today, and I bought it near that low.  I see plenty of value here.  Trading at 6.2x forward earnings?  Even if those estimates are a bit optimistic, this thing is cheap.  I know they have some drugs patents expiring in the next few years, but this stock is cheap.  Throw in a 5% dividend, I'm happy to park some money here while we wait for the market to recover.

I'll do my best to post more to the blog.  I always post when I make a transaction, but I would like to pass along more info about the specific names I own or am looking at, and will make more of an effort to do so.

Happy Independence Day!

Disclosure: Long GGP, TIII, PFE

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