This week Model Manager Lucas Krupinsky bought shares of Nymagic Inc (NYSE:NYM). During 2009, the financial situation for Nymagic (an insurance holding company operating in the ocean marine, other liability, aircraft and inland marine/fire sectors) improved and showed increased stockholder equity and net income. The company has a low price to earnings ratio and recently announced that it would be issuing a dividend. Since Krupinsky focuses on recent news and financials (like income statements and balance sheets) to find positions to add to his portfolio, it makes sense that Nymagic would have caught his eye.
Krupinsky also shorted BP Plc (NYSE:BP) this week which shows—wonder of wonders—that he is bearish about the position. News about BP lately has varied between bad and worse, so it’s not surprising to see BP being shorted. Of course, investor sentiment is hard to predict and there are never any guarantees that shorting a position—even one in the financial, ethical and public relation mess that BP is in—will be successful.
Model Manager Yinglan Tan invests in companies that have secured venture capital and that have what he recognizes as predictable income and long-term growth potential. This week, Tan bought Changyou.com Ltd (NASDAQ:CYOU), a company that creates online games including the popular multiple player online role playing games (MMORPG). CYOU has a low price to earnings ratio compared to competitors and their stockholder equity more than doubled in 2009. Like many game creators, CYOU has tremendous potential if they can keep up with changes in technology and evolving consumer tastes.
Model Manager William Sosa closed his short term stake in AK Steel Holding Corp (NYSE:AKS). Sosa trades primarily in the energy, technology and materials sectors and uses his own system for evaluating the price changes that these positions go through and, based on that system, determines when the best time to get in and out are. Because his system is proprietary, it is hard to guess what he saw in the price that made him close a position he held for two months. Over the last three months, the steel product manufacturer’s stock has lost over 37%. It currently has a three to four figure price to earnings ratio, which is excessive on its own and looks even worse when you compare it to its competitors. The company has had negative cash flows for the past two years and recent negative housing and building news indicates that there may be even more struggles ahead.
Sosa also bought and sold Caterpillar Inc (NYSE:CAT) recently. This manufacturing company sells machinery used in housing construction as well as gas turbines. The stock is currently up for the month and seems to be rising in spite of poor economic data in the housing sector. The company just announced plans to increase its product offerings and create a line of mining shovels. This forward thinking and momentum indicates that the company understands the need to diversify and broaden its product reach in order to survive and outpace competitors.