Issue 6: Small/Midcaps

This issue is terrible.  Too many computers/peripherals companies.  This is a razor-thin margin section of the technology industry and I won’t even look at them.  I don’t pretend to understand technology, so it’s not worth analyzing.  I only took a look at two industries because I won’t invest in property management companies either.  The industries are office equipment/supplies and furniture/home furnishing.  Furniture/home furnishing is historically very cyclical, but if you buy the right company, it all averages out fine.  The office companies were all pretty bland.  I found no interesting situations, nor did I find any great businesses to add to my list.  The best business in this issue is Dorel Industries, which, strangely enough, is a pink slip.  The market cap is about $1 B and is around fair value now, but possesses a couple brands you would recognize.

I’m not posting any new issues for a week or two because I am focusing on the industry downturn in for-profit colleges.  I’m hoping to find a good company that will not be affected, but it’s too early to tell from how much I’ve read.  Once I’m done, I’ll get back to my value line reading.


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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