2007 June « Enterprising Investor Forum

Coeur D’Alene Mines Tuesday, June 12, 2007

Posted by ei-forum in US Traded Stocks.
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Coeur D’Alene Mines Corp Idaho (CDE) primarily explores for silver, gold, lead, and zinc deposits. It does so either directly or through wholly-owned subsidiaries and owns leases and has interests in certain exploration-stage mining properties located in the United States, Chile, Argentina, Bolivia and Tanzania.

Not only is this a play on the fact that the world has nearly run out of silver but it is also interesting as a hedge against economic downturn and the current pressure on financial markets and the USD. Today, Silver may be one of the best investment opportunities out there.

We feel that practically all of the fundamentals are in place for e serious move in the stock price not only in the coming months but years to come.

Some interesting figures:

Net Working Capital: 3.27
Fixed Working Capital: 1.90
Current Ratio: 16.78
Interest Coverage: 0
Quick Ratio: 15.02
Cash Ratio: 14.54
ROA: 10.44
ROE: 16.35
Net Margins: 34.82
Operating Margins: 30.01

We currently believe that at 3.58 USD the shares are very interesting (average current analyst target price is 5.49).

Please click here to watch an interesting interview with the CEO of CDE.

Please read our disclaimer.

Mueller Water Products Tuesday, June 12, 2007

Posted by ei-forum in US Traded Stocks.
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Mueller Water Products (MWA) is a leading maker and supplier of a broad range of water infrastructure and flow control products for use in water distribution networks, water and wastewater treatment facilities, gas distribution systems and fire protection piping systems.

These are the kind of companies we really like: boring business but solid fundamentals. The stock, which sells at a small premium to book value, has been suffering due to fears about the housing market slump but experts agree the water business is becoming more and more important globally and that that water infrastructure in the U.S. is going to need major repair in the near future.

Mueller is definitely an interesting way to gain some exposure to the water industry – this is a solid play. Furthermore, we do not regard the Short % of Float @ 41% as an issue, in fact, it will potentially provide a spike in price as shorts will be forced to cover and accelerate the long-term growth of the stock price.

We currently feel the B shares (MWA.B) are extremely interesting at 15.49 USD.

Please read our disclaimer.

The Intelligent Investor, Benjamin Graham (with preface by Warren E. Buffett and commentary by Jason Zweig). Tuesday, June 12, 2007

Posted by ei-forum in Book Reviews.
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As it says on the cover, this book is the definitive book on value investing. It can look a bit daunting at first but it is a relatively easy read and conveys Graham’s overall approach to investing. Despite the fact that Graham updated the latest edition in 1976, it is amazing to see how it is a timeless classic. The preface by Buffett is a bonus but it’s Zweig’s commentary that really takes it one step further. It’s like having your own personal tutor that goes through every chapter with you, not only clarifying the text but also offering up-to-date examples and adding useful commentary.

This is a book for true investors and not traders or speculators; the ultimate goal is not to maximise profits but to minimise loss (i.e. Graham’s famous margin of safety). This book is considered a bible by the best investors around. Buffett himself says “By far the best book on investing ever written.”

Graham starts by portraying the different types of investors and details investment strategies for both the defensive and enterprising investor showing how investors can identify under priced stocks. He goes on to offer his approach to develop an investing plan not only for buying stocks but also bonds and stresses that one must always stick to the plan regardless of what is happening around us … emotions are what tend to betray investors during sudden bull and bear markets.

A must read for anyone who has a passion for investing and who wants give him/herself the best chance of successfully managing savings.

Enjoy!