Tuesday, August 08, 2017

Eight Days A Week

Eight Days A Week

I have eight days and then I start a new MFI Select tranche.  With the May tranche struggling (down 8.4%), I would really like to pick a winning group of stocks.  I am also intending to continue my 2017 initiative of increasing my stakes.  So probably a 40% to 50% bump in this tranche.  Yes, it is starting to be real, real money!

I just finished the book "Dead Companies Walking" and want to try and avoid any companies that are dead or that are not changing with the times.  Also, always thinking about the Amazon effect - they are like poison any time they say they are going to enter a space.

Here are a few names to kick it off for me:


  1. CSCO
  2. GHC
  3. GNTX
  4. ICHR
  5. KLAC
  6. MD
  7. RHI

Wish me luck!

4 comments:

michael wilson said...

Are you thinking of these as dead companies walking or ones you are considering for your tranche? I am enjoying the diary btw.

Mike

Marsh_Gerda said...

mike - these are companies I am thinking of buying. Dead companies walking are (in my view) companies like

GME
VIAB and
BKE

Not saying a dead company cannot reinvent themselves - but need a bold plan and bold leader.

Thanks for reading

Riley Thompson said...

Have you put much thought/research into MU? Very similar company to KLAC and I would be interested in hearing your insight on why KLAC has a better value than MU. I thoroughly enjoy reading your blog, keep it up!

Riley

Marsh_Gerda said...

Riley - thanks for reading and commenting. I do focus primarily on stocks that make the Magic Formula Investing Screen (https://www.magicformulainvesting.com/) as this is the MFI Diary. MU (to my knowledge) has not been on the screen of late, so I have not even looked/compared with KLAC.

I do have my own workbook and as of 7/29, MU was 850th stock in MFI rankings while KLAC was #65. Looking at balance sheets, the huge difference is Property/Plants and Equipment. MU has $19b while KLAC is under $500m. So that gives KLAC much higher Return on Capital figures.

Doesn't mean MU is not a good investment, it just doesn't pass the MFI screens.