Two new stocks will get added to my top 25 mechanical portfolio. The portfolio is still doing relatively well, although the stocks that were added last week are off to a rocky start. I don't have the worksheet with me right now, but overall still out-performing the S&P 500 by about 6 points.
QLTI is the first of the new stocks. It is a very strange company, I can not really determine whether it "belongs" or not. At quarter-end they had a 105m market cap, but had 230m of excess cash! They do expect to make money in 2009, analysts have them at 7x forward earnings. They are a biotech compnay that has traded over $4 and now is $1.41. It looks to me like they went through major restructuring in 2008, laying off 45% of their EEs and selling off parts of their business.
Reading some headlines, it sounds like they are embroiled in some patent disputes and have some issues. I am not smart enough about bio-tech issues, but given all their changes and uncertainty going forward I would say this is not a true "mfi" stock as the future may be extremely different from the past. Not to say at $1.41 it may be a good buy. I will add it to my mechanical portfolio, but will not buy in real life.
EXBD - never heard of this stock. It seems to me that they are consultants. What immediately struck me about EXBD is that they have $190m in current assets and $355m in current liabilities. That is not exactly the type of fortress balance sheet I am looking for as we head into the turbulent recession. They do pay an 11% dividend, though I am not sure that is the best use of their earnings given their liabilities. The share price has dropped from $35 to $13 in the past 6 months.
I won't be in any rush to buy shares here either!