First, I read a blog post by someone else today that I
thought was outstanding:
Second, I was mentally congratulating myself just this week
on the fact that I have a portfolio that is pretty stable and doesn’t need
touching for a few months at least. Then
good old Google Alerts sent me a notification on MS International. Normally Google sends me alerts on some
beauty contest (seriously! http://www.missinternational.org/en/), so I was a
little surprised when this one was actually about the company that I own. And I was excited to see that they’ve bought
back more shares. This time in the open
market and it makes nearly 10% of the share count in the last couple of months.
They’ve got no reason to stop, either,
and it’s not inconceivable that they could end up buying back 20% at depressed priced,
just before earnings turnaround. I had
to buy some more, and so the question is what to sell? And it’s good old B&C Speakers that I’ve
gone for. Reasons? Well, it’s was only
5% of the portfolio, which is pretty meaningless for me. And while I think I’d rather own B&C than
most stocks out there, I’m not sure I would buy it outright today. It’s 13-14 times forward earnings, with
expanded margins, and an exposure to emerging markets, where the ongoing
shudders could get worse. While I don’t
predict the macro, you have to be aware of it.
I also don’t have a handle on how big the addressable market is. I’m sure it could yet go up 20-30% on momentum
and quality, but MS International probably has less short term downside and
more medium term upside. I just hope my
order gets filled on Monday!
In other news, I saw that Pennant International was tipped
in Investors Chronicle this week. Part
of the explanation was that Pennant has a history of performing well before
results. I didn’t really know what to
make of this, but apparently it resonated with lots of viewers. Stock up 10% today!
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