Despite his crappy birthname, I like John Dorfman and his picks. I’ve bought a few stocks on his say.
He is thinking dividends,
and commodities (metals) because
[quote]I am sweet on Commercial Metals Co. (CMC), an Irving, Texas, company that manufactures, trades and recycles steel and other metals. Commercial Metals has been profitable for at least 19 fiscal years in a row. The shares trade for eight times earnings and 0.33 times revenue.
Steel and Chickens
I am also fond of Schnitzer Steel (SCHN), based in Portland, Oregon. Schnitzer deals in scrap steel, makes steel, and operates auto junkyards. It has reported a profit every year since it went public in 1993. At six times earnings it looks very cheap.
I will probably finally buy this one…been oggling it for years… jdsuspectshewill
Sanderson Farms makes the list for a third-straight year. After a 65 percent gain in 2004, Sanderson shares declined 27 percent this year through Dec. 23, due mostly to flat chicken prices and worries about avian influenza. I see those as temporary problems. [/quote]
Sanderson made a chickenshit load of scratch for MOtely Fools a few years back. Looks good to me too.
Schnitzer has a really good run about two years back when steel was hot. They did some buying/expanding with the extra cash and laid, I hope, some good groundwork. All the while, the p/e has stayed between 6/7. It’s already up about 30% since June and hopefully continue on the up through the new year. If you like steel and metals, keep an eye on US Steel (X) and Phelps Dodge (PD). I’ve had good luck with both, but the steel industry is pretty cyclical; set yourself a sell point and be happy with a nice return.
Just what I’ve had a bit of luck in doing in the past.
I’m thinking that 2006 might see a lot of companies go on buying sprees, which would give a push to the banking sector. I’ve held a chunk of Citibank for quite a while and have enjoyed tidy little 4-5% dividends, but am hoping this will be the year its share price makes a move.
I’m looking at Dell. Sure, I wish I bought it in 1995 and multiplied my money times 50 in a few years. But at less than $30 today it still looks cheap to me. It’s a strong, innovative company, right? Surely it’ll hit 40 within the next year or two, for a gain of 33%.
Well, for a company of Dell’s size to still be posting 9-10% growth for the year definitely says something; I’d say it’s a good, safe bet for the long haul.
Since there are no official casino’s in Taiwan, the stock value of Altek is a nice alternative. Altek is a Taiwanese company making mostly digital camera’s and listed here under number 3059. Every day big up’s and down’s, lately mostly up though.
Just what I’ve had a bit of luck in doing in the past.