This issue was probably the most fun I’ve ever had with Value Line. There are more opportunities, great businesses, and interesting businesses in here than I’ve seen yet in the other 24 issues. The industrial services industry was my personal favorite to pore over; many of these companies operate in small niches & their profitability is extremely high. Maritime, as usual, is an industry with almost universal value destruction for shareholders. The restaurants had a few up-and-coming businesses that may have good outlooks moving forward. The environmental companies were all pretty bland; nothing stood out on either extreme of great/terrible. Here are my companies to look into:
- Team Inc.- also a great business; I’m interested, going back to 2001/2002, whether it was possible to predict the growth moving forward.
- Pre-Paid Legal Services- largest share buyback program in the last decade of all Value Line issues (so, virtually all companies in USA)
- Ambassador’s Int’l- pretty beaten up, deep value possibility
- Benihana Inc.- very solid business, perhaps worth a look for growth prospects
- Innotrac Corp.- again, pretty beaten up & deep value possibility
- J. Alexander’s- hit hard by recession, would be a bet on recovery
- New Frontier Media- deep value possibility
- Pacer Int’l- not bad, very consistent operations except for recession; cheap if earning power returned in full
- VSE Corp.- also a great business (based on historical financials), may be the single-greatest opportunity if their earning power is not going anywhere; a friend of mine thinks they’re going to fall off a cliff, I’m going to take a look
- Exponent Inc.
- Landstar System Inc.
- Neogen Corp.
- Pre-Paid Legal Services- favorite of the issue
- Standard Parking
- Steiner Leisure
- Syntel Inc.
- Team Inc.- highest growth rate I’ve seen except at True Religion
- VSE Corp.- may not stay on the list if my friend is correct about them losing out on earnings moving forward
You’d do well to check some of these out; I haven’t seen opportunities like this in a while. Also, one other to check out might be Radioshack; their stock fell off a cliff & the business is pretty solid. It’s funny to me that although the market is at such high levels, there are some companies still under everyone’s radar…