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Tue, 04 Jan 2005

Metal Management Inc. (MTLM), based in Chicago, is a scrap metal recycler selling for 7 times earnings. Clearly its fate is tied to the strength of the economy. I figure the economy will slow some in 2005, but it starts from a robust point. Sixth-cheapest is LandAmerica Financial Group Inc. (LFG), a Richmond, Virginia, title insurer that has been in the Robot Portfolio each of the past two years. It returned 51 percent in 2003 and 4.3 percent last year. Again, fear of the Fed is the main reason the stock is so cheap (7 times earnings). If rising rates hurt housing sales, there will be less need for title insurance. In the seventh spot is General Maritime Inc. (GMR), a New York firm that operates a fleet of oil tankers. I own it for some clients and consider it a good three- to- five-year investment at 7 times earnings
Posted 10:44

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