A Value Investing Analysis of OMNOVA Solutions ($OMN)

Specialty chemicals manufacturer OMNOVA (OMN) has had its share of ups and downs since hitting a 52-week high in October.  Disappointing 3Q 2012 sales and 4Q 2012 earnings estimates that missed big time – analysts expected $0.13 per share and results were $0.07 per share – have sent the share price on a roller coaster.  OMNOVA is sensitive to global demand and the domestic U.S. economy; global sales are what tanked sales in 2012.  However, CEO Kevin McMullen said that a “recovering U.S. housing market, growth in oil and gas...

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Is Valero ($VLO) Undervalued?

Valero Energy (VLO) is an independent petroleum refining and marketing company based in San Antonio, TX.  Trading sharply higher this week, Valero has been able to capitalize on increased mid-continent domestic production.  Margins have increased as Valero has proved perfectly capable of handling the Canadian heavy crude coming from North Dakota and Saskatchewan; the same cannot be said of the east and west coast refineries stuck processing imported and expensive offshore product.  Hess Corporation’s (HES) decision to close its Port...

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My Favorite Sectors for Value Investing

My favorite companies to hold are ones that produce tangible products.  Easy-to-understand products and asset-intensive companies both provide confidence in my value calculations, as opposed to the complicated financial instruments and paper assets of banks.  Two sectors have produced my best returns over the past six years:  Basic Materials and Industrial Goods.  Here is a snapshot of my success in these types of companies:   Ticker Sector Industry Return Year PD* Basic Materials Copper 53% 2006 GGB Basic...

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3 Undervalued Companies That Meet Joel Greenblatt’s Criteria

If you don’t know who Joel Greenblatt is, then brush up on your famous value investors by reviewing my previous post You Should Know Joel Greenblatt.  This post discussed his successful formula and presented his formula’s criteria. His formula is not a valuation formula, but more of a stock screener. This screener ranks stocks from 1 to 50 with 1 being the most attractive stock and can be accessed for free on a website supported by Greenblatt. At ValueMyStock we built a Greenblatt screener and supercharged it by applying our...

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Seth Klarman: Silent Assassin of Value Investing

I love studying successful investors, especially fellow value investors.  My academic and early investing years were spent studying Warren Buffett and Michael Price.  Now I am intrigued by current managers and how they fared during the financial crisis.  I covered Joel Greenblatt in a previous blog – his “magic formula” is simple to understand and would have pleased Benjamin Graham.  I love it so much that ValueMyStock created our own daily report of stocks that pass his test.   Many investors have heard of Joel Greenblatt,...

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