Value Investing Center

Welcome to Value Investing Center, a website dedicated to applying the value investing philosophy to today’s economic and stock market news.

Equities

We’re always searching for high quality businesses that generate strong returns on capital trading at a discount, it is the essence of value investing today. What would cause such high quality businesses to trade at such a bargain? It could be a one time product recall like we saw with Baxter International or an overreaction to a declining business segment like with Monsanto.

• Baxter International’s (BAX) Pump Recall and One Time Charges
• Valuing Monsanto Co.

We also are on the look out for over-hyped stocks and/or companies with questionable accounting.

• Red Flags for Fuqi International
• Telestone Technologies’ (TSTC) Cash Flow Crunch
• The Good and The Bad News from Green Dot’s (GDOT) IPO

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The Economy

What are the economic indicators showing? What do they mean for your bonds? What do they mean for equities? Our goal is to identify the key data points from each economic report and discuss how they will affect bonds and equities.

• Chicago PMI Drops in May
• May 2011 ISM Manufacturing Index Weaker Than Expected
• April 2011 Durable Goods Report & Investment Implications

What about a weakening U.S. Dollar or current inflation levels?

• The Dollar’s Demise? Hardly
• Headline Inflation Vs. Core Inflation

Event Driven Investing

There is value in corporate actions, spin-offs, mergers and acquisitions, and when we find them we’ll cover them here.

• Merger Arbitrage: Portec Rail Products Inc. (PRPX)
• Merger Arbitrage: Healthronics (HTRN)
• Spinoff Opportunity: AMC Networks (AMCX)

And So Much More…

Personal financial issues.

• The Scariest Financial Statistic (and it’s NOT the US Government Debt)
• Are You Contributing Enough to Your 401(K) Plan?

What we’re doing in client portfolios.

• Out of the Woods but Risks Remain ~ American Money Management Q2 2011 Client Letter
• Reducing Risk Assets, Increasing Market Neutral Position

Commentary on the overall market.

• Effects of Inflation on Stock Market Returns
• Tobin’s Q Ratio from June 2011 Flow of Funds Report

Visit our archives for more.

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