Anyone net long in the markets felt like this after yesterday’s close:
Image source: BrokersHandsOnTheirFacesBlog.tumblr.com (Brilliant!)
It is understandable. You (and I) took a wollaping. Good companies fell with bad. Nothing seemed to make sense. Fundamentals? Pssh. Fundamentals be damned. The market didn’t give a damn. Just sell. Sell and get me the hell out of everything. Put your head between your knees and prepare for . . .
→ Read More: Market Contraction? Value Investors Rejoice! ($BBY, $GME, $RSH)
Back the truck up Mavis. Electronics retailers are cheap.
Dirt cheap. Historically cheap. Do my eyes deceive me cheap. Wal-Mart rollback cheap. Groupon cheap (the deals, not the IPO). You get the picture.
I’ve written about how Best Buy (NYSE: BBY) is a shareholder-friendly value stock, and about how Radioshack (NYSE: RSH) represents a remarkable value opportunity. I’ve gone on at length about how these companies have long track records of earning exceptionally strong returns and free cash flows. I’ve . . .
→ Read More: hhgregg Inc: A Hhelluva Deal. Value Price with Growth Performance ($HGG, $BBY, $RSH, $GME)
Sometimes the best investment opportunities are right in front of you and for one reason or another, you fail to take notice. This is the surprising case of how I failed to notice Radioshack’s (NYSE: RSH) remarkable performance for far too long.
I can tell what you are thinking. Radioshack… is that company still around? Who possibly shops there when there is a bigger selection of electronics at Best Buy (NYSE: BBY)? I shared these views for years. The first . . .
→ Read More: Radioshack Represents Remarkable Value Opportunity ($RSH, $BBY)
Deutsche Bank has released its list of Top 50 LBO Candidates. Tessera Technologies (NASDAQ: TSRA) made the cut, along with Lexmark (NYSE: LXK) and two of the clothing retailers I like (The Gap (NYSE: GPS) and American Eagle Outfitters (NYSE: AEO)). Though, notably absent is Aeropostale (NYSE: ARO), which I think is a better candidate than either of the other two.
According to The Financial Post,
The strategists looked at 500 LBOs since 1986 to identify the . . .
→ Read More: Deutsche Bank Top LBO Candidates: Guess who is on the list? ($TSRA, $GPS, $AEO)