Issue 5: Small/Midcaps

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.

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About Andrew Schneck

I am a value investor focused on misunderstood securities and industries, with an eye for long-term stock ownership.
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