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Best Values Now?

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April 05, 2013 – Comments (1) | RELATED TICKERS: NOV , XOM , INTC

Board: Value Hounds

Author: khrushchv

There is no doubt that the market has risen. But that doesn't mean we Value Hounds can't sniff out a bargain or two. So I'm wondering, what has piqued your attention recently? What looks like a good value?

My top prospects these days tend to occupy the oil patch and the tech sector...

1) National Oilwell Varco (NOV). It's hard to think that these guys don't have a moat when they're colloquially referred to as "No Other Vendor." At a P/E of 11.5 it's not a bad price....yada yada great business, good price...yada yada good business, great price...

2) Exxon Mobil (XOM). Exxon isn't the only super major trading with a P/E in the single digits. But it's Exxon...it's like buying shares in PG, JNJ, MO, PM, BUD, DEO, or whatever in the single digits...you're unlikely to go broke which, in the investing game, is often times more important than trying to knock it out of the park.

3) Intel (INTC). While not as cheap as it once was, I think INTC has been sold down the river when it comes to expectations about mobile. Mobile is Intel's new PC business...they'll use their hottest fabs to out-price and out-perform competitors' SOCs and then make really good money off of server processors.

4) Seagate (STX). This is partly a read from mungofitch's analysis but it's a compelling case...one of the two duopolists in the hard drive space (Western Digital is the other). They allocate capital incredibly well and trade at a P/E of 5. Don't have to think too hard at that price which is just the way I like it.

What are you looking at these days? 

1 Comments – Post Your Own

#1) On April 05, 2013 at 5:13 PM, awallejr (85.46) wrote:

For my core holdings I am sticking with MLPs, BDCs and Reits for the most part.  Started picking up AAPL and GOOG and will add monthly to stay price averaged with them.  I have T, GE, WEN, XRX.  I am pretty much sticking to a "yield" theme.

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