What's Working
Cash Bargains

When looking for bargain-priced shares, what could be better than a situation where cash-per-share exceeds the stock price. It's like spending $100 to buy $110. In real life, it's not usually quite that simple. There may be other claims on that cash, or the company may be burning through its hoard by losing money in its operations. But still, there are times when an abundant cash position can create an interesting, even if imperfect, opportunity. After all, one can do a lot worse than spending $100 to get nearly $100 plus something else.   Full Article »

What's Working
Book-Value Bargains

Book value isn't necessarily the best valuation metric, even though its definition (the dollar value of what investors own by virtue of their holding shares of a corporation) sounds good on paper. Practical realities (intangible assets, changes in value over time, revised notions of usefulness, etc.) often don't match up well with accounting formulas. But with other performance-based valuation metrics (EPS, sales, cash flow, EBITDA, etc.) being so volatile right now, classic book value can be a useful guide to uncovering stocks that may be unduly cheap.   Full Article »

What's Working
Bear-Market Bargain Hunting

Suffering losses when the market tumbles is bad enough. Adding to the irritation are commentators who whoop with joy about how bear markets afford great opportunities to buy good stocks at bargain prices. Frankly, I'd rather pay full price for what I buy and enjoy a much higher brokerage balance. So I'm not going to wax poetic about how much I love these buying opportunities. But . . . that won't stop me from take advantage of them while they're here.   Full Article »

What's Working
Recessionary Equity Strategies: Having It All

Prior blogs presented recession-oriented equity strategies based on quality, value and growth applied to a group of so-called defensive-business. Backtesting pinpointed several comparably viable single-style approaches. Today, we'll consider a more generalist protocol that combines styles. The backtest results here are slightly better than what we've seen up till now, and beyond the numbers, many may find it easier to sleep owning a multi-strategy portfolio.   Full Article »

What's Working
Recessionary Equity Strategies: Still Going For Growth

Traditionally, growth is the last thing investors should consider when formulating recession-oriented investing strategies. According to the stereotype, growth stocks tend to be over priced and over hyped, and hence most vulnerable to steep declines during market downturns. Clearly, we've all seen many instances in which events conformed to that image. But it's not growth per se that's the problem. Those who focus on the basics rather than glamour can find an ample number of growth strategies that are viable even in bear markets.   Full Article »