Idea Time
The market action has been generally positive the past few weeks, helping our account positions in energy and the financials, as well as selected small caps. We are still waiting for rotation into health care, including drug makers and hospitals (HCA). Tech and speculative internet companies continue to move upward, but we continue to believe there are other ways to play continued market strength with more downside protection. For newer accounts, we continue to hold plenty of cash for the time being, looking for more favorable entry points in our favorite companies such as WFC, RD, ING, AHR and others. Finally, we continue to search high and low for intriguing new ideas in the small and mid-cap space that will generate good returns and not be as susceptible to a potential market downturn in the weeks ahead.
- posted by Jay @ 6:09 PM

 
New Quarter
A good beginning to the fourth quarter for the markets and most account positions. This, in part, makes up for a disappointing few days in late September that saw some positions, particularly TUP, take a hit. TUP has now stabilized, backed by its gaudy dividend and generous cash flow. It may take a while, but a turnaround of a still great brand name is still a possibility. As with all our positions, however, we continue to monitor it everyday for signs of deeper weakness.

Otherwise, the watchword continues to be opportunistic, value investing. Dividends above 3% continue to intrigue us, and that has caused us to focus on energy, financial, and some foreign stocks. Special opportunities continue to be found in a hoped for Japanese turnaround, which has us playing the EWJ ishares for some accounts. Small caps are also of interest, but finding the real gems is an always difficult process. Stay tuned.
- posted by Jay @ 5:58 PM