Back to 30

I bought my 30th MFI stock today: SHOO. It will not be replacing a February stock, but will instead be a new stock, so I have poured more moolah into my portfolio.

This of itself shows why just looking at itd percentage return (as a few people suggest on the Yahoo message board) is weak. By adding a stock, my itd percentage return dropped as my denominator increased, but my numerator stayed about the same. However the annualized IRR adjusts properly as IRR recognizes that SHOO has only been around a day.

Pretty funny, I love to poke fun at analysts. I wonder how they keep their jobs. I guess everyone has a right to be wrong... but check out these guys:

Back in July Infinium Securities downgraded VPHM... not just one notch, but TWO notches! From Outperform to Underperform. Were they ever wrong! The stock price has almost doubled since then! Pretty embarrassing for professionals to be that wrong.

UST was downgraded today (UST Inc downgraded by UBS). I love this stock, I am up over 50% from last February. I'll be sad to see them leave. I do wonder if stocks will continually rotate back in. Will I see UST on the list in 2008 ot 2009? It seems if a company has a good ROIC, it should stay decent over time, and you just have to wait for it to become cheap. Heck, when you think about it like that, investing doesn't seem that hard.

The blood-letting continued on OVTI today, down another 3% to $12.01! Now just step back a second. The Enterprise value of OVTI per Yahoo is $324m. Their ttm EBITDA is $125m. That means that you could virtually have the company in 3 years. They have $6.5 per share in cash for gosh sakes! Do you think I am fired up? Well I darned well am!!! Unless there is some malfeasance going on, this is one of the cheapest stocks I have ever seen. I already have in MFI and side car, so I won't be adding shares at this ridiculously low price, but don't think I don't have an itchy trigger finger.

Enough. Let me go take some valium.