Here are some investment ideas from blogs I have been reading.
While Seeking Alpha has a number of articles about investment ideas discussed at the Value Investing Conference 2007.
- Lowe’s Companies (LOW): long idea from Mark Sellers, Sellers Capital.
- Valued at close to worst case scenario.
- LOW is taking market share from Home Depot and still has growth opportunities.
- Downside is $20 according to Sellers.
- Kelly Formula suggests investing 500-600% of capital into LOW based on Sellers inputs.
- Sellers has made LOW 25% of his portfolio.
- EMC stub: long idea, created by shorting VM Ware (VMW) and buying EMC (EMC) from T2 Partners’ Whitney Tilson and Glenn Tongue.
- EMC trades at a very cheap relative value against its peers.
- T2 believes EMC will eventually sell off entire VMW stake as the vast majority of parent companies that engage in spin-offs do.
When the maker of these personal digital assistants went public on March 2, 2000, parent company 3Com owned 532 million shares, or 95 percent of the venture, a stash of stock worth $50.6 billion at the day’s closing price of $95.06. At the same time, 3Com had 351 million of its own shares outstanding, making its multibillion-dollar stake in Palm worth $144.08 per 3Com share. Yet 3Com closed the day at only $81.81. The stock market’s verdict was loud and clear. The way investors saw things that day, the rest of 3Com was worth negative $62.27 per share.