Wednesday, December 21, 2005
i'm watching UEX.TO and Strathmore for uranium plays. I saw Strathmore has 3M acres in that coveted area in Canada. Sounds like a very nice long term play. I'd expect the oil/gas energy sector to start moving money into uranium for their next bull run.
How do you choose what companies to analyze, seems like you run through the alphabet of reporting pennies, and you pick/screen a few pennies out of that letter for the day and analyze them in spare time when get home?
I'm a computer science/web developer working for an accounting company in philly. I'm interested in learning a little more fundamental/technical analysis; might buy that 'lemonade stand' book you recommended :).
For investing, I believe it's important to be able to be able to map between numbers and reality. As I read through the details of a 10-K, I try to picture what the business "looks like". If a company has $2,000 of property, plant, and equipment which is fully depreciated and the lease costs are very low, it reminds me of a particular one-room business I visited decades ago. When I looked at Hanover Foods, it reminded me of some old industrial plants I've seen in large ancient brick buildings with old guys who had worked there since the beginning of time (from experience, those places are good at being repeatable but not at being quickly adaptive).
Del's is a Rhode Island institution with an extremely strong brand loyalty. In my opinion, their management could have done a lot more to expand geographically, but they've done very well within their chosen market. What they need is a CEO who genuinely believes the rest of the world is being deprived of high quality frozen lemonade.