Monday, January 30, 2012

Regeneron : Great portfolio of molecules

Regeneron has one of the best pipeline of new molecules. Despite the criticism the author believes there is significant upside.

The author has purchased Regeneron (REGN) at $88.24.

Tuesday, January 24, 2012

Ecopetrol: The Petrobras of the future

Ecopetrol is a buy. The Colombian state owned energy company found massive, easily recoverable reserves. The earnings growth rate is tremendous for this company and it can actually increase as more wells come online.

Moreover, Colombia is a much more attractive place to invest than just a few years ago.

"Per capita GDP in Columbia has doubled since 2002, largely due to increased investor confidence in the country’s political stability. Columbia has seen a 90% drop in kidnappings and a 46% decline in murders over the past ten years."

What better pitch for a company is that?

The author bought at $50.50.

Sunday, January 1, 2012

Sherwin Williams: First step of a housing recovery

When home maintenance is done, the first major improvement to the cosmetic appeal is a can of paint. Thus with the bottoming of housing starts and a spike in remodeling permits (see graph below), it may be time to buy a paint company.

Sherwin Williams is the top paint supplier in the US. The sales at their paint stores are growing at a 7.8% rate and margins are expanding. The dividend is stable and should have room for growth with new sales growth.

The author will buy Sherwin Williams at $87/share.

Turkcell is still a buy: Doubling down

Turkcell fundamentals and balance sheet are even better than before, and the price even cheaper. Turkcell has seen significant growth in Central Asia and Eastern Europe. Due to a currency collapse, the Belarus subsidiary has been written down to a negligible value. Growth of profits from smart phones has been increasing on track to bring new growth. All of these items make Turkcell more and more attractive.

The Achillies Heel of TKC is the foreign shareholder versus domestic shareholder power struggle that has been ongoing since TeliaSonara bought a controlling share of the company in 2005. Collateral damage to shareholder occurred in 2011 with the foregoing of the dividend payment due to the inability to agree between the two major shareholder factions.

Who knows when these issues will resolve? But the deep value of Turkcell makes this investment worth the wait. Thus the author is doubling down on the Turkcell investment at $11.78.