We haven't been posting too much about the club lately so here's a quick update:
-We bought GE a few weeks ago when it was at $12.50 (little did we know it would lose 44% of its value in such record times). The club is still confident that this will rebound and make a profit in the long term, but the recent plunge may have delayed that time frame from being a 1 year turnaround to a 2 year turnaround. The financial track record with GE is too long and too strong to get weak in the knees now and give up, the club feels.
-We've been working slowly on bylaws regarding club accounting practices, and look to start writing bylaws on voting and stock evaluation in the next month. After that we need to write additional bylaws about meetings, attendance, adding new members, and more. After all the bylaws are written, we will consider opening the club up to new members.
-We have another salvo of investing cash and are considering where to invest next. Several options are out there, but we're still researching new stocks and opportunities as well. MTW is the leader in the clubhouse, but we're not in a rush to put money into the market right now. This isn't to say that we're afraid or are trying to time the bottom, we just don't feel urgently.
I'll try and make these posts a weekly edition on Tuesdays to give you readers an insight into the car-azy world of our investment club.
Are there any interesting stocks out there that you would like to recommend? Any interesting stories about developing your own club's bylaws?
Showing posts with label MTW. Show all posts
Showing posts with label MTW. Show all posts
Tuesday, March 3, 2009
Friday, January 2, 2009
Paul Woodcreek's Personal Portfolio...
With this post I'm opening the books and giving you some insight into what I currently own, my thoughts about these particular stocks, and some insight into the performance to date. So, without further ado, and in no particular order, here we go...
1. Wal-Mart (NYSE: WMT) - Wal-Mart is a good stock in a sector that currently terrible. Retail stocks have been a bust over the last year, but Wal-Mart was one of the few that actually fared well. Aside from McDonald's (NYSE: MCD up nearly 6% in '08) Wal-Mart was the only Dow gainer for '08 (http://online.wsj.com/article/SB123085827075747869.html?mod=googlenews_wsj) with an 18% gain for the year. I see Wal-Mart continuing to flourish in '09 due to a continuing deterioration of the economy. Consumers will continue to seek low priced goods and Wal-Mart fits the bill better than just about any other retailer. Since purchase in early Dec. '08 I've a 6.64% gain on WMT before fees.
2. Caterpillar (NYSE: CAT) - See my Caterpillar post for insights on this stock. Since purchase in early Dec. '08 I've seen a 22% gain on CAT before fees. Not too shabby!
3. Chesapeake Energy (NYSE: CHK) - This stock was one that came recommended to me as a speculative value play and I didn't do much homework on it prior to purchase. Consequently, I bought it at $16.90/share right before some bad news came out and Cramer bagged the stock on his show and my supposed great value plummeted nearly 70%! Not to fear though, CHK is back on the upswing and recently got some good news with changes in how the SEC counts unproven natural gas reserves (http://uk.reuters.com/article/rbssEnergyNews/idUKN3028354420081230). This stock continues to have a huge upside, but it isn't for the faint of heart. Since I bought this one in early Dec. '08, I've seen it down around $9/share and up near $18/share. Currently it is at $17.20/share giving me a 6.9% gain before fees.
4. General Electric (NYSE: GE) - See my General Electric post for insight on this stock. Since purchase in early Dec. '08, I've seen a 6.92% gain on GE before fees.
5. Coca-Cola (NYSE: KO) - Coca-Cola seemed like a good stock to buy during these rough economic times since it offers a fairly recession proof product. No matter how bad things get, people can always find a buck for a soda. So far, that logic has served me alright. Since purchase in early Dec. '08, I've seen a 3.75% gain on KO before fees. Not a huge hitter yet, but still nothing to sneeze at.
6. Skyworks Solutions (NASDAQ: SWKS) - Purely a speculative play based on Cramer suggesting it as such on Mad Money. The stock was beaten down despite being the chip provider for Apple's (NYSE: AAPL) successful iPhone. After doing a little homework on the company I decided to roll the dice and shoot for a nice rebound. Since purchase in mid Dec. '08, I've seen an 18.43% gain on SWKS before fees. I still have this one pegged for at least a two bagger and maybe as much as a two and a half bagger depending on the rebound. I'm planning to sell this one as soon as I get what I want out of it.
7. Manitowoc Co. (NYSE: MTW) - See my Manitowoc Co. post for insight on this stock. Since purchase in early Dec. '08, I've seen a whopping 33.52% gain on MTW before fees!
Total portfolio: All purchase made early Dec. '08 or later. Total return to date is 12.74% before fees.
1. Wal-Mart (NYSE: WMT) - Wal-Mart is a good stock in a sector that currently terrible. Retail stocks have been a bust over the last year, but Wal-Mart was one of the few that actually fared well. Aside from McDonald's (NYSE: MCD up nearly 6% in '08) Wal-Mart was the only Dow gainer for '08 (http://online.wsj.com/article/SB123085827075747869.html?mod=googlenews_wsj) with an 18% gain for the year. I see Wal-Mart continuing to flourish in '09 due to a continuing deterioration of the economy. Consumers will continue to seek low priced goods and Wal-Mart fits the bill better than just about any other retailer. Since purchase in early Dec. '08 I've a 6.64% gain on WMT before fees.
2. Caterpillar (NYSE: CAT) - See my Caterpillar post for insights on this stock. Since purchase in early Dec. '08 I've seen a 22% gain on CAT before fees. Not too shabby!
3. Chesapeake Energy (NYSE: CHK) - This stock was one that came recommended to me as a speculative value play and I didn't do much homework on it prior to purchase. Consequently, I bought it at $16.90/share right before some bad news came out and Cramer bagged the stock on his show and my supposed great value plummeted nearly 70%! Not to fear though, CHK is back on the upswing and recently got some good news with changes in how the SEC counts unproven natural gas reserves (http://uk.reuters.com/article/rbssEnergyNews/idUKN3028354420081230). This stock continues to have a huge upside, but it isn't for the faint of heart. Since I bought this one in early Dec. '08, I've seen it down around $9/share and up near $18/share. Currently it is at $17.20/share giving me a 6.9% gain before fees.
4. General Electric (NYSE: GE) - See my General Electric post for insight on this stock. Since purchase in early Dec. '08, I've seen a 6.92% gain on GE before fees.
5. Coca-Cola (NYSE: KO) - Coca-Cola seemed like a good stock to buy during these rough economic times since it offers a fairly recession proof product. No matter how bad things get, people can always find a buck for a soda. So far, that logic has served me alright. Since purchase in early Dec. '08, I've seen a 3.75% gain on KO before fees. Not a huge hitter yet, but still nothing to sneeze at.
6. Skyworks Solutions (NASDAQ: SWKS) - Purely a speculative play based on Cramer suggesting it as such on Mad Money. The stock was beaten down despite being the chip provider for Apple's (NYSE: AAPL) successful iPhone. After doing a little homework on the company I decided to roll the dice and shoot for a nice rebound. Since purchase in mid Dec. '08, I've seen an 18.43% gain on SWKS before fees. I still have this one pegged for at least a two bagger and maybe as much as a two and a half bagger depending on the rebound. I'm planning to sell this one as soon as I get what I want out of it.
7. Manitowoc Co. (NYSE: MTW) - See my Manitowoc Co. post for insight on this stock. Since purchase in early Dec. '08, I've seen a whopping 33.52% gain on MTW before fees!
Total portfolio: All purchase made early Dec. '08 or later. Total return to date is 12.74% before fees.
Sunday, December 21, 2008
Manitowoc Co.
When you read the name 'Manitowoc' it probably looks like nonsense, but after this post I'm hoping it looks a bit more like '$$$$$$$$$' next time you see it.
Manitowoc Company (NYSE: MTW) is an industrial manufacturer that makes cranes, ships and food service equipment. The cranes are made under the names of Manitowoc, Grove, Potain, National and Crane CARE brands. Next time you are driving by a construction site having a crane on site, it is almost a sure bet that it was made by Manitowoc.
Why is this stock worthy of your attention? Easy, Obama's infrastructure plan concerning the replacement and repair of highways and bridges. Manitowoc makes the cranes needed to lift the heavy steel beams and concrete barriers needed in road and bridge construction.
Management: This is an area that I couldn't find too much info on beyond the company's numbers. Based on the company's history I'd say it is pretty well run based on posting a profit in 9 of the last 10yrs, and it is a growing company having acquired Shirke Construction Equipments Pvt. Ltd in July '07 and Enodis PLC in October '08. That said, news came down on Friday that the Chairman, Terry Growcock (yes, that's his real name), is retiring. Who is taking over and what this means for the future is still a bit of a question mark as of this posting.
Financials: As previously mentioned, Manitowoc has been profitable in 9 of the last 10yrs and has a low P/E ratio of 4.19. The stock has a 52-week high of $51.49/share and a 52-week low of $4.56/share. After crunching some numbers, I currently show a relative value of $98.58/share, an initial rate of return of 29.94% and an annual growth rate of 0.59%. My feeling on this stock is there is a ton of upside and built in value considering the price is currently at $8.75/share.
Outside Factors: Obama's infracstructure plan and low interest rates. As I already mentioned, Manitowoc builds the stuff that builds our roads and bridges. What I didn't mention though was the fact that interest rates are amazingly low right now. Despite the rough economy, this might be a good time for companies to take out loans for large capital purchases with the thinking that the economy will eventually turn around. Also, these interest rates might spur the start of some large scale private building projects which would also benefit MTW.
Performance to Date: I bought in to MTW at $7.19/share. As of this post, the stock was at $8.75/share to net a 21.7% gain in roughly 3-weeks of holding. The stock has seen prices as high as $9.88/share during the time I've owned it (37.41% gain over purchase price). I'm confident that MTW will rebound to a point closer to it's 52-week high at some point in the next 1-2yrs based on some of the factors discussed in this post. Even at $8.75/share a return to the 52-week high of $51.49/share is enough for a near six bagger! At my purchase price of $7.19/share, I'd net a seven bagger. This is a stock that I plan to invest further in over the next few months.
Manitowoc Company (NYSE: MTW) is an industrial manufacturer that makes cranes, ships and food service equipment. The cranes are made under the names of Manitowoc, Grove, Potain, National and Crane CARE brands. Next time you are driving by a construction site having a crane on site, it is almost a sure bet that it was made by Manitowoc.
Why is this stock worthy of your attention? Easy, Obama's infrastructure plan concerning the replacement and repair of highways and bridges. Manitowoc makes the cranes needed to lift the heavy steel beams and concrete barriers needed in road and bridge construction.
Management: This is an area that I couldn't find too much info on beyond the company's numbers. Based on the company's history I'd say it is pretty well run based on posting a profit in 9 of the last 10yrs, and it is a growing company having acquired Shirke Construction Equipments Pvt. Ltd in July '07 and Enodis PLC in October '08. That said, news came down on Friday that the Chairman, Terry Growcock (yes, that's his real name), is retiring. Who is taking over and what this means for the future is still a bit of a question mark as of this posting.
Financials: As previously mentioned, Manitowoc has been profitable in 9 of the last 10yrs and has a low P/E ratio of 4.19. The stock has a 52-week high of $51.49/share and a 52-week low of $4.56/share. After crunching some numbers, I currently show a relative value of $98.58/share, an initial rate of return of 29.94% and an annual growth rate of 0.59%. My feeling on this stock is there is a ton of upside and built in value considering the price is currently at $8.75/share.
Outside Factors: Obama's infracstructure plan and low interest rates. As I already mentioned, Manitowoc builds the stuff that builds our roads and bridges. What I didn't mention though was the fact that interest rates are amazingly low right now. Despite the rough economy, this might be a good time for companies to take out loans for large capital purchases with the thinking that the economy will eventually turn around. Also, these interest rates might spur the start of some large scale private building projects which would also benefit MTW.
Performance to Date: I bought in to MTW at $7.19/share. As of this post, the stock was at $8.75/share to net a 21.7% gain in roughly 3-weeks of holding. The stock has seen prices as high as $9.88/share during the time I've owned it (37.41% gain over purchase price). I'm confident that MTW will rebound to a point closer to it's 52-week high at some point in the next 1-2yrs based on some of the factors discussed in this post. Even at $8.75/share a return to the 52-week high of $51.49/share is enough for a near six bagger! At my purchase price of $7.19/share, I'd net a seven bagger. This is a stock that I plan to invest further in over the next few months.
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