In their Large Cap Value model, manager Bristlecone VP focuses on those large cap companies that are trading at a discount to their intrinsic value. The model is long only and its manager uses a research-intensive process to identify intrinsic value and noticeable discounts.
This week, they added Vulcan Materials Co (NYSE: VMC) to the model. VMC produces both chemicals and construction aggregates like stone, sand and gravel. In their quarter two 2010 financial results the company’s net revenues showed some improvement over the prior two quarters. With President Obama pushing infrastructure projects as a means of economic recovery, it is possible they could see even more revenue improvement over the next year. The company was trading at a seven month high when it closed at $58.89 on May 3rd but has since lost value closing on September 20th at $36.63.
Another position added to the Large Cap Value model this week was Exxon Mobil Corp (NYSE: XOM). While the company’s price to earnings ratio is higher than many competitors, their quarter two 2010 earnings were up 85 percent from the same quarter in the previous year. Their financial results also show a 60 percent increase in earnings for the first half of this year, compared to the first half of last year. XOM hit an all-time high when it closed at $95.05 on October 18th, 2007. On September 20th, XOM closed at $61.55.
