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