kevinwinter (96.01)

A year end look at what I own...

December 26, 2008 – Comments (0) | RELATED TICKERS: NM , DRH , PAC

It's the day after Christmas, and I'm using this time to reresearch the companies I own in my Roth. A warning: this is not the bulk of my holdings. The majority of what I own is in my 401k, which is of course down horribly for the year. This account is much smaller, and I am actively picking stocks myself. I buy micro- and small-cap stocks mostly, after due research of course. I have an extremly high risk tolerance. I am also dead even this year, actually up 0.5%. Including transaction costs, which are no small percent on small accounts.

I'm currently holding NGA, FEED, DRH, PAC, NM, IJS, & BKF.

First the stinkers: my two exchange traded funds - a US Smallcap Value fund (IJS)and a BRIC (Brazil, Russia, India, China) fund (BKF).  I've decided to sell them at a loss. Not because I think they won't come back (although I will admit I bought BRIC at the worst possible time), but I simply see better opportunities. I do believe the smallcaps will recover much faster than the large cap companies. I also think the US and Europe have a better outlook than the emerging markets over the next 12 months

As for individual stock holdings, in no particular order:

North American Galvanizing (NGA) has it's ducks in a row. They just announced another buyback, no debt, good growth, well positioned if they decide to bail out the roads and bridges. It's still cheap, but I don't believe for long. It looks like I will be able to hold this one for years.

AgFeed Industries (FEED) is a Chinese Pig Farm. I had some concerns about possible shenanagins (stock is waaay off it's highs), but at the high it was trading for 64p/e. Under all this volitility, there is a real business there somewhere. Management knows the business, and it's currently priced cheap if they have zero growth. I'll be buying a little, and will hold until management starts taking on debt.

Diamondrock Hospitality (DRH) is a REIT that owns 20 really good hotels. Look at their properties. Their debt is structured right. But they've decided to forgo dividends until next Christmas, but promise to pay out 100% of after tax profits. I think it's a fairly good move to accumulate cash, and I'm in it for long term growth and not the dividends. I don't think I'll increase my holdings, and it will be interesting what mgmnt does with the moolah- I'm sure there are very good "distressed" properties soon for sale. It's quality over quantity.

Pacific Airport Group (PAC) owns all the stuff at the airports at 11 locations in Mexico. Sure, travel numbers will go up and down, but these guys are a monopoly. With little debt, fat margins, and no competition, you don't need to be a rocket surgeon to make money  Will be adding shares until the p/e climbs back up.

Navios Maritime (NM) is a Greek drybulk commodity shipping company. Shippers may have a tough go in general, but this company has controlled debt, reacted to the slowdown quickly to free up cash, has contracts for all ships locked in for '09 and most for '10. And most important, the CEO owns a lot of stock and knows her shipping business. NM will grow well under her leadership.

See something that I don't in these stocks? Let me know the error of my ways. Stay tuned and I'll discuss new investments I am considering adding to my portfolio.

Happy Holidays!