Weekend stock pick: Special Opportunities Fund

With stock markets reaching all time highs it is natural for investors to feel a bit uneasy about putting more money into shares. Special Opportunities Fund (NYSE:SPE) is a closed ended fund which can protect investors from a downturn whilst still having upside, unlike cash.

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Why I hate banks

A quick scan of the markets nowadays shows that many banks are selling for below their net tangible assets. For a value investor such as me, this is usually a great sign that an investment is undervalued. If a company has net assets above its market value then it can simply liquidate and return cash to shareholders, giving an instant return. However banks are different.

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Weekend stock pick: Kentz

Kentz is a specialist construction company for the oil and gas industry. It earns returns on equity of 25%, has net cash equal to a quarter of their market cap ($181m) and trades at a PE ratio of 9, the lowest it has been since 2009. This is a fantastic long term investment with a large margin of safety at today’s prices.

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