Better Shop Around

With the markets crashing, but MFI stocks beginning to truly outperform once again (per my tracking portfolios) I think it is time to put new cash at work in MFI. The five I am considering for my September tranche include:

KHD - this is a hong-kong based company involved in providing constriction/building equipment worldwide. Pro Forma profits are up 88% year over year AND their backlog is up 96%! Their business is coming from Russia, Eastern Europe and Asia (A Hidden Play on Infrastructure). They also have 280m of excess cash against their 730m market cap. Looks like a solid company to me.

NWS - This is a magic Diligence pick, that Steve gave away for free. Obviously this is broadcasting and newspapers. Also they own Myspace.com (which I have never used). They have lots of well-branded content such as the Simpsons and American Idol, plus the Wall Street Journal!

BOLT - I already have some shares, but am allowed a second bite at the apple. They have dropped under $18 as they have tangential exposure to oil/gas. They are high-tech in helping oil & gas companies look for the black gold. Frankly, I don't think that since oil has dropped to $105 that companies are going to stop looking for the stuff... so the drop seems like a buying opportunity. They have also already said that they think 2009 will be another stellar year.

PPD - Pre-paid legal, sounds a bit like a gimmick. But what caught my eye is that renowned value investor Seth Klarman is a buyer. I feel that gives it the good housekeeping seal. And they are on the top 25 list.

I got bad news on NOK on Friday, the stock dropped about 13% as they warned about reduced market share (Nokia's Reduced Outlook Sends Shares Down 13%). I still like the company a lot, but I am certainly feeling snakebit lately (actually for the past 13 months, but even with the decline I had a decent week last week compared to the benchmarks.

I saw where one of my original MFI stocks, UST is being bought by Altria. It was up over 22% on Friday. I guess I should have bought them again, they've been on the lists (Altria Holds Deal Talks to Buy UST).

There is also a new stock on the top 25 list... EMGI. A little small for my stomach of late (35m market cap), but they look interesting. They will definitely be on my list competing against MD as I know this is first time they have been listed.