On the surface, chicken stocks like Sanderson Farms(Nasdaq: SAFM), Gold Kist(Nasdaq: GKIS), and Pilgrim’s Pride(NYSE: PPC) are a value manager’s dream. Most of them are not very leveraged, they generate a decent return on capital, and best of all, they trade at single-digit P/E based on last year’s earnings. So, are chicken stocks the value manager’s dream, or are they a value trap in the making? I think the answer is a little bit of both, depending on an investor’s time horizon.
March 30, 2006 | Posted in Stock Analysis | Read More »
Lloyds TSB (NYSE: LYG) is up more than 5% at Wednesday’s open, on the speculation that it will be bought out by Spanish bank BBVA. It’s hard to tell whether this speculation has any substance, since rumors of a Lloyds takeover surface every couple months or so. However, Lloyds is a prime candidate for acquisition for several reasons:
March 24, 2006 | Posted in Stock Analysis | Read More »
February 23rd, 2006 – The Motley Fool By Vitaliy Katsenelson, CFA After reading Jeremy Siegel’s book Stocks for the Long Run, one gets a strong sense of security about investing in the stock market. Over long periods, the market overcame catastrophes like a global influenza pandemic, the Great Depression, the Cold War, two Gulf wars, two [...]
March 8, 2006 | Posted in Book Review | Read More »
March 1st, 2006 – The Motley Fool By Vitaliy Katsenelson, CFA “Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning [...]
March 8, 2006 | Posted in Stock Analysis | Read More »
