Saut: 3 Long Ideas to Buy on Weakness

Includes: CCG, RVT, WMB
by: Jeffrey Saut

Excerpt from Raymond James strategist Jeffrey Saut's latest essay (published Monday, March 7th):

...I can still find decent risk-adjusted investments that should be scale-bought, especially on weakness. In previous reports I have discussed names like Williams Company (WMB/$30.84/Outperform), as well as the closed-end fund Royce Value Trust (RVT/$15.19), both of which are special situations.

This morning I offer another, namely Campus Crest Communities (CCG/$11.79/Strong Buy), which “missed” its quarterly earnings estimate last week with an attendant 18% decline in its share price, bringing the dividend yield to 5.4%. I like the strategy of buying fundamentally sound companies when one-off accidents happen because I think it takes much of the price risk out of the investment equation. For further details please reference our fundamental analysts’ recent research note on CCG.