Issue 5 was not nearly as pleasant as Issue 4 for the small/midcaps. Most of the industries were not very profitable and I found very few interesting companies. Many businesses lost money in the recession, or they were recently public. I don’t like to analyze companies if they don’t have a long track record. It does not interest me in the slightest if I have to make a guess at how profitable a new company will be in the future. Also, the human resources companies provide temporary blue-collar or white collar workers, but with unemployment at 9.5% or so, I’m thinking they will continue to have trouble. Great businesses in the issue:
- Petmed Express
Yes, only one great business. It might be interesting to learn that those lame commercials actually make them a good amount of money. I haven’t looked into them further, and they’re not at a good price, but they possess great underlying fundamentals. In terms of interesting situations, there were none. The market is giving us less and less to work with every day.