Model manager Patrick Clark focuses on the current purchasing power of the dollar in his portfolio because he thinks that we are facing a period of inflation. He attempts to take all emotional decision making out of the equation when choosing stocks and attempts to be market-neutral.
If you’ve ever made a casserole, or had a relative or friend make a casserole for you, then you should be familiar with Corningware. Corning Inc (NYSE: GLW) makes glass and ceramic products for cooking and for LCD televisions, computer monitors and more; in the kitchen, their oven safe ceramic glass product line is called Corningware and it has been in use in homes since 1958. They also have a division that makes fiber optic cables and they are even branching out into green products and filters. The company has a low price to earnings ratio compared to competitors and the company’s stock seems to be steadily recovering from its 2008 low. With the company’s long-reaching, multiple market development strategy, their outlook is steady. It is also not surprising, with the popularity of the products they help to create, that the company’s book value has increased substantially over the past 3 years.
Leggett & Platt Inc (NYSE: LEG) are responsible for the creation of industrial materials, commercial fixtures and residential furnishings. Their price to earnings ratio, price to book ratio and price to sales ratio are all pretty favorable, especially when compared to certain competitors in the consumer durables sector. While their stock has yet to climb back to its 2006 high, in the past year it has gained over 49% making its overall 5 year change down just over 8%. Both their net and operating income have shown a steady increase over the past 3 years.
