Thursday, September 24, 2009

The Streak Continues

Despite a couple of down days for the market, my MFI portfolio continues to rise, now up 15 staright days. I am sure that means I have a crash and burn day coming up soon. I did add a stock earlier this week, QCOR at $5.42. Not really in line with my mechanical approach, but they had fallen about 20% and were just looking darned cheap.

What has been weird lately is that not only have my MFI stocks been rising, but some of my former MFI stocks which I have held (outside the portfolio) have been rising sharply as well. I have had two (HBMFF and KSW) that are up about 20% this week.

HBM, is a commodity play in Canada. They were as low as $2.50 back in January and now they're pushing $11. Their catalyst was not only the fact that gold, zinc and copper prices are rising, but that they also had a major new find (HudBay Announces Major New Copper-Gold Intersections at Lalor). I did buy more shares as this is exactly the sort of company I want to be in right now. Non-US and they should be hedged against inflation and a weakening US dollar.

KSW is a heating and air-conditioning contractor in New York. They had some wins and start ups of projects in the past week to drive their stock higher (KSW Joint Venture Receives Award of World Trade Center Chiller Plant Project) and (KSW Announces Resumption of 42nd Street Project). They are still embarrassingly cheap, as they trade at $3.92 and have $2.77 per share in cash. They would easily still be on the MFI list (I don't have my program to do their calc as my normal computer is in the shop) except that their market cap has fallen under $50m.

A couple other former MFI stocks which I still hold have moved up sharply since August first:
KSW - 2.87 to 3.92
LCAV - 5.74 to 7.50
HBM - 7.37 to 10.69
TRID - 1.68 to 2.82

Granted, all these names were a disaster for me when I had them in the portfolio. But I still think they all have upside (except for LCAV) due to strong balance sheets.

Have a good one everyone!

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