Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: fakena Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3296  
Subject: Re: challenge update Nov 25 05 Date: 11/27/2005 5:07 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4

CTU-SVA 39.6% LE CHATEAU INC CL
CRU.TO 20.8% CREW GOLD CORPORA NHG.V 7.1% NORTHAMPTON GROUP
HP.TO -99.6% HIP INTERACTIVE C

With 11 months of the 2005 year gone and one month left, I may as well update these picks as to desirability I guess may be the word.

Le Chateau has done well over the past several years, since the brief sales letdown and has produced very strong same store sales results ever since. They have targeted doubling floor space over next few years by increasing menswear floor space and opening stores into the secondary retail markets. However dividend is less than 2% and stock price is about 10 times forward earnings which are very near a peak profit margin IMO.

I was thinking of selling back at beginning of year because of its near full value level from my standpoint, but this is the situation that all that institutional money likes to buy; so I held and sold most around $45 or so and still hold a bit. Which I'll sell soon most likely.
No longer a recommended pick.

Crew Gold Corporation...they definitely have some full plates as to projects that are about to become full production in next two to five years. I still have this one as a huge port % and most likely will trim it back to half or a third of present sometime in the next year I think.
Still worthwhile as a pick.

Northampton Group...an operator of a few hotels mainly in southern Ontario, a few in Montreal area and a couple in US. I definitely like the performance of this company looking back over the past 5 years or so. They have done fairly well given the troubles in the markets they are battling in. Stock price of $0.75-$0.90 isn't bad for a company with earnings power of $0.10-0.15 and cash flow power of $0.20-0.30. Many other such cash flow business models are trading near 10 times cash flow.
Definitely still a great buy and most likely fairly valued at $2-$3, if its fair to compare with other such operations.

Hip Interactive. Strange, one bad retail year killed this company. They spent way too much in the way of publishing. Also I think they missed bigtime in their inventory purchases in terms of what the retailer would buy from them. If most of the volume was simple fulfillment, and at 10% margins it should have been; they shouldn't have had that much trouble with the inventory value.

100% loss is more accurate than 99.6%. Not a good stock buy today. Definitely not.

Other companies under consideration for 2006 picks and actual buys:

Acadian Gold...a NS operation about to begin open pit operations at Beaver Dam soon, and most likely Forrest Hills undeground operations being advanced to produce maybe 2007, I'd think. Maybe not.

Bevo Agro...a BC greenhouse operation that produces plants from seeds, and sells to other greenhouse operations that grow plants to produce vegetables. I think they may have potential of producing $0.08 to $0.12 EPS in most years and probably a great buy at $0.30 or so.

CanaDream...I already hold enough of this one but I think most years going forward will produce at least $0.06 EPS if not a dime or so.

Coast Wholesale Appliance income trust. Don't know if this fits the microcap criteria for picks but I like the distribution percentage when its buyable at $7 or less for sure. I own some of this already. I'll probably own more if it dips below $7 again and I get my Bison Resources shares sold.

Amisco....I think I'm going to watch this one hard over the next year for indication that sales troubles are over. Its been a steady performer in the past and sub $3 will most likely be a bargain if this one gets turned around fast.

Dynatec...if the Madagascar nickel project ever gets underway and looks close to produce value anything near its potential...then this one is way undervalued.

Stealth Ventures...drilling for coal bed methane in Stellarton and Springhill coalfields. I waited for this one to get cut in half to buy and instead it doubled. Just the opposite of Acadian Gold. I bought and it was cut in half in value. I'll put some consideration into this company over next year for sure.

Pacific Insight a BC manufacturer of electronic modules and wiring harness for auto, trucking, and marine markets. Definitely a small company worthy of buy and hold for a longtime if its priced at less than $3. Probably opportunity to wait and pick up at less than $2 even. I paid almost $5 back in the days of CDNX buy rushes. A lot of buy mistakes back then on my part.

So there's a few thoughts.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement