gugaplex

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Bought NADX 2 weeks ago for $18.80, still has room to move to $23-24 easy.

Bought TOA on 10/5 for $10.11, has room to grow to $14-15. Stock trades at 0.55 x's book value, has a PEG ratio of 0.25, and is extremely over-sold.

Let me know what you think, and what your favorites are....


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BackdoorJesus

I'd like you to tell me if my DGX stock is going to recover any time soon from the 18% hit it took a week and a half ago.

It has historically performed really well for me. At this point I'd just as soon hold as sell only because I feel this last big hit is an anomaly; ultimately I want to roll it over into some real estate (southern Cal) and am thinking the stock still has some upward potential, if not full recovery, before I move on that.

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gugaplex

Well, DGX looks like it can rebound quite nicely from this sell-off. Are you planning to use the proceeds from future sale for real estate investment, or for a personal home purchase?

If it is the former, I suggest investing in other assets. I can't say what assets at this moment because I can't make a call until the day comes in which you sell DGX.

gugaplex

I purchased Powerwave Technologies (PWAV) today @ $5.89 because it is a great value/growth investment. The company provides technologies for wireless communications networks like Cingular and Nokia. PWAV will benefit from the coming boom in wireless broad-band speed phones (3G) that the majority of consumers will upgrade to as prices decline. Consumers will increasingly rely on their cell phones and lap-tops for more functionality such as video, internet, etc.

Another great reason for investing in PWAV is the low valuations. The stock is trading at a mere 1.06 x’s Book Value, and has a forward P/E ratio of only 14. PWAV may have lower to go over the short-term, but I would not be surprised if it hit $20 over the next 3-4 years. This makes the stock a low risk/high reward investment.

gugaplex

Today I bought Triad Hospitals (TRI) at $39.06 for several important reasons. The first is because the stock has attractive valuations. TRI trades at 1.09 x's Book Value, has a PEG ratio of 1.06, and forward P/E ratio of 11.96.

Triad will benefit nicely from the massive demand from Baby-Boomers that will start to play itself out in the next few years. Once this demand starts picking up, it will last for decades. The older they get, the more they will be dependent on hospitals like Triad. TRI has nice exposure to the southern states, which will be a hot spot for Baby-Boomers as many relocate after retirement.

Another hospital chain similar to Triad is HCA. Private equity groups have teamed up for a leveraged buyout of HCA recently, sending the shares up 25% from the date of the announcement. With HCA trading at 4.27 x's Book Value and Triad a mere 1.09, it seems like the private equity groups have another nice value in TRI.

The company recently reported that they will have a shortfall in earnings for the quarter because of unpaid debts from certain "customers". I think this news is by far already factored in to the price.

gugaplex

Yesterday I purchased shares of Impac Mortgage Holdings (IMH) @ $9.62 because the stock is incredibly cheap.



Here are the numbers for IMH:
Price to Book = 0.61
PEG Ratio = 0.68
P/E Ratio = 7
Dividend Yield = 10.3% (but may lower dividend)
Profit Margin = 64%
Return on Equity = 23%

I think the real estate market will rebound from the doom and gloom scenario that is sweeping the markets. Even if things do not improve significantly, IMH is being treated by Wall Street as if they are going out of business (due to the extremely low Price/Book Ratio).

gugaplex

I bought Chromcraft Revington (CRC)@ $9.64 today because of several reasons:

1) The stock trades at 0.80 x’s Book Value.

2) CRC sports a nifty PEG Ratio of only 0.96.

3) The 5-year chart shows extreme pessimism in the stock (which USUALLY suggests a turnaround).

4) The financial statements are pretty clean. Take a look at their Balance-Sheet, you will see that they have no “Intangible Assets” or “Good-Will”. Taking a gander at the Income Statement and Statement of Cash Flows gives the investor a clear picture of the company’s financial status. Unfortunately, it is difficult to say this for most publicly-traded companies.

CRC is profitable, and will likely increase margins as commodity prices decline. The bursting of the commodity bubble will help CRC on both the top-line and the bottom. Consumers will have more disposable income, and the fixed and variable costs will decrease for the company.

gugaplex

After selling Corning (GLW) a few weeks ago for $25.46, I decided that the stock once again looks attractive. I mentioned then and I will reiterate today, Corning has a bright future due to expected growth from LCD TV's and broad-band technology. Because we are entering the historically positve period for the markets (November-April), I decided to increase the risk in my portfolio a tad. Roughly 20% of the "risk" has come out of GLW since I sold a couple weeks ago.

The markets may sputter a bit from here, but I expect the dips to be bought for the remainder of the year and into next. GLW may continue to struggle a bit as well, but I am not going to try and time the near-term bottom.

Good Luck

gugaplex

Today I bought back National Dentex (NADX) at $19.03. A couple months ago I bought the stock for $18.80 and sold a few weeks later at $21.97. The stock has a strong chance to reach the mid $20's within a few months. NADX has a price/book ratio of 1.29 and a PEG ratio of about 1.00. The stock is thinly traded with only around 7k per day. I suggest buying an amount that makes up less than 10% of your holdings.

Good Luck...

http://rationalinvesting.%%%%%%%%%%%%%/