Here are the top stories this week at Value Investing News:
- Image Entertainment (DISK) Valuation Despite Merger Failure
A reader provided a detailed analysis of DISK and why it is cheap even now without the merger. A high LBO target.
- For Value Investors, Smaller Is Better
Value investors are always looking for inefficiently priced stocks. Such stocks are often found among smaller cap issues, since these securities are not worth the time and the effort of analysts and institutions catering to billion dollar funds. Empirical evidence also supports the fact that small caps have the potential for greater returns…
- Procter & Gamble (PG) – a reliable dividend aristocrat
One company, which, despite the current financial meltdown, continues business as usual, is Procter & Gamble. Other companies which show their confidence in their ability to grow earnings and generate enough cash in the future include Enterprise Products Partners L.P. (EPD), H.B. Fuller Company (FUL), People’s United Financial (PBCT) and Anworth Mortgage Asset Corporation (ANH).
- Hopping Happenings at eBay
eBay’s management looks to be stirring the pot. Skype’s founders want to buy their creation back, though eBay denies that they’re close to a deal. StumbleUpon’s founders disclosed that they had brought their baby back home, which they had sold to eBay for $75 million two years ago. And lastly, eBay appears close to purchasing a 34% stake in Korean online auction operator Gmarket.
- Buffett’s Berkshire Letter for 1981
Buffett compares buying controlled v. non-controlled businesses, and the relative attractiveness of American stocks v. bonds, after accounting for taxes.
- Pricing Power and Economic Moats
For many goods and services, tight economic times trigger the tightening of budgets. However, even during such times, the most desired goods and services will still command a premium and increasing price. For the investor, these are the wide moat businesses that should find a home in one’s portfolio, at an attractive price.
- Stock Analysis: McDonald’s Corp. (MCD)
McDonald’s Corporation is the largest fast-food restaurant company in the world. Its restaurants serve a varied, yet limited, value-priced menu in more than 110 countries around the world. Linked here is a detailed analysis and commentary.
- When to Sell Stock
Read any investment book, blog, or magazines and you will see a multitude of recommendations related to buying stocks. Unfortunately, little is written about selling the stocks that you already own.
- Companies Faking It
In order to determine whether a company is worthy of an investment, it is important to understand exactly how it makes money. This post looks at the strange business activity at Daxor Corporation to make its point.
- Abbott Labs (ABT) Dividend Stock Analysis
Abbott Laboratories manufactures and sells health care products worldwide.
The companyis a component of the S&P 500 and is a dividend aristocrat, which has been consistently increasing its dividends for 37 consecutive years. Most recently Abbott raised its quarterly dividend payment by 11% to $0.40/share.
I hope the weather is as nice as it is here. If it is, be sure to go outside an enjoy the weather this weekend.