Danieli is trading below its net cash position and on a forward P/E ratio of only 7.9. The management is honest and competent and the company has been profitable for over 10 years. So why don’t I think this is a good investment?
In one of my previous posts I analysed Sino Grandness and said it presented an attractive risk reward opportunity. I fear I misunderestimated the risk and wanted to share what I have been reading since posting the article.
I do a lot of reading and over the last couple of weeks I have read a number of interesting articles with some great investment opportunities and musings which I wanted to share.
Sino Grandness grew profits by 100% last year, a long running trend, yet trades at a P/E ratio of just 6.7. There is of course a catch, but in my opinion the upside here far outweighs the downside. This is a chance to buy a wonderful company at a bargain price.
Outdoor Channel has now gone private and I made over 12% in just a couple of months. This was a great example of an investment with protected downside.
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.
A couple of years ago I read up on Halfords business and was on the fence about whether to invest. I decided to pass in the end and a recent news release has made me reflect on the thoughts I had at the time. Many of those are still relevant to Halfords today.
Cranswick announces growth in revenues and profits with a strong outlook for the future. But with the shares at a PE ratio of 14, are they now fully valued and should I sell them from my portfolio?
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.
What is a good investment to make in a recession? Most companies do badly but there are some that flourish in difficult economic times. EZ Corp is one of those businesses that has done well, but how will it do if the economy improves?