Steve's Value Picks

Value Investor

Rating: 2.00 not yet rated(1 votes)    Vote:

You are logged in as | Logout

I look for stocks that I believe are a good value in relationship to the price per share. Specifically I look for stocks with a good ratio of stock price to revenue per share and book value. I look for stocks which pay a good dividend. I look for stocks with a low debt ratio. I look for stocks which are selling toward the low end of their 52 week trading range. I also consider the business that they are in and whether that business has the potential to do well in the current economic environment. I try to avoid troubled industries. Banks and the home construction industry would fit this category in today's environment. That is my investing stategy in a nutshell. We only have a limited amount of money to invest and I want to invest mine in what I consider the best values available on the market. The popular stocks are generally inflated in value and open to great losses in troubled times. The stocks that I try to pick have a low down-side risk and a high upside potential. My bet on gold and silver is a bet against the dollar. As long as our goverment and individual spending is out of control as it is today, the dollar will be headed south over the long term.

My favorite stock right now is Imperial Sugar (IPSU). They deal in a commodity that will be in demand even in a recession. Sugar also has a possible future in the creation of biofuel. This company has a high cash position and almost no debt. Their dividend does not look like much at the surface, but they have paid a special dividend of $2.50 or $3.00 per share at the end of each year to distribute their excess cash. This added to the stated dividend amounts to a 14.4% total dividend. There is no guarantee that they will continue this, but then again there are no guarantees in life. This is not a growth company but one the has produced solid results year after year.

Comments: 0