In Sreeni Meka’s Long Term Value model, the goal is to invest in the low-risk equities of companies with strong balance sheets.
The top holding in the model is Oshkosh Corp (NYSE: OSK). In September, the company announced that its Chairman and CEO, Robert G. Bohn, had decided to retire. Replacing him is Charles L. Szews, who will serve as CEO and President. When Bohn joined OSK in 1992, he took the company to entirely new levels of both production and earnings. It took a while, but the graph below shows how strongly the company’s stock performed under his leadership.
After the September 21st announcement, OSK faltered, falling from a closing price of $28.73 on September 20th to $26.16 on September 23rd. It has since recovered and beat that number, closing at $35.26 on January 5th. On December 9th, Magic Diligence listed OSK on its list of lowest price-to-sales ratio stocks.
Another top holding in Meka’s model is Nelnet Inc (NYSE: NNI). In September, Kapitall added NNI to its list of 6 Fundamentally Solid Companies in a Strengthening Uptrend. In the list (posted September 2nd when NNI’s closing price was $22.99) Kapitall noted that NNI had gained 67.9 percent over the past year (calculation found using NNI’s September 3, 2009 closing price of $13.05 and its August 31st, 2010 closing price of $21.91). Since that time, the stock has risen even more, closing at $23.11 on January 4th.
*Prices and charts courtesy of Yahoo Finance.
