- Value is where you find it. Why would you overpay for a stock? You wouldn’t overpay for a car, would you?
- Value requires picking over many blemishes before finding a gem. Kind of reminds me of the sale rack at Macy’s after a holiday weekend.
- Look out for trends in the economy - tech, defense, global events, etc.
This is my fourth blog. DVD, TROW and UTL were my previous favorite picks; they have all worked out well over the years. I will seek to address a few of my favorite value picks here. Finding them requires looking under a few rocks, which I try to do each and every evening.
Liberty Defense Holdings, Ltd: LDDFF
Liberty’s main product is its Hexwave technology product, which uses active 3D imaging technology and machine learning to scan crowds for weapons in high traffic areas with multiple entry points without the need for dedicated security checkpoints. Think schools, hotels, public transit, and sports venues. LDDFF closed most recently at $0.44.
John Hancock Financial Opportunities Fund: BTO
This sleepy little ETF holds only 604MM in assets, but pays a strikingly great dividend of 6.80 percent. Its diversified holding base is made up of some very large and recognizable names, sprinkled with a healthy dose of regional banks and thrifts. This equity is sitting near the bottom end of its trading range and is a great choice for yield-hungry investors also seeking capital appreciation.
Artesian Resources Corporation: ARTNA
By now, I guess you’ve noticed this global warming trend? Future conflicts will likely be fought, not over oil, but instead, over scarce freshwater resources. Luckily for us, there are quite a few publicly listed water companies in this space. Instead of focusing on well-publicized water companies such as MSEX, YORW or SJW, let’s take a peek at a tiny corporation with a market cap of 344MM. Located on the Mid-Atlantic seaboard, nothing about Artesian screams buy: its stock price is choppy, its P.E. is a little on the high side (24 P.E.), its dividend is a little low (2.69%), and it’s sitting at the low end of its trading range. In other words, a perfectly overlooked stock for a value hunter!
So there you have it, three more picks for the last quarter and beyond...
Analyst's Disclosure: I am/we are long BTO, LDDFF, ARTNA, MSEX, yorw.
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