Author: Don Merrell
Covestor model: Small to Mid Cap Value
Disclosure: Long all stocks named
Here are my short investment theses for new positions added to my model in August:
– CF Industries Holdings, Inc. (CF): Super strong return on capital deployed, solid earnings to enterprise value, stable EPS growth.
– HollyFrontier Corporation (HFC): Great return on tangible capital, exceptional earnings to enterprise value, low PE, solid EPS 5 year EPS growth, strong balance sheet, undervalued.
– Joy Global Inc. (JOY): Consistent earnings growth, significant return on capital deployed, undervalued by 30% or more in my assessment.
– TESSCO Technologies Inc (TESS): Strong dividend, above average efficiency ratios, strong EPS growth, undervalued by as much as 25% in my assessment.
– Timken Company (TKR): Strong dividend, solid efficiency ratios and EPS growth, low PE, high current ratio, undervalued by 34% or more in my assessment.
– Humana (HUM): Superior return on enterprise value, consistent EPS growth, strong financial ratios, undervalued by 20%+ in my assessment.
– ManTech International Corp (MANT): Strong dividend, impressive return on tangible capital and return on enterprise value, low PE, positive earnings growth, strong financial ratios, undervalued by 30% or more in my assessment.
