Contrarian Plays, 4th of July Special: HLYS, SWIM

Friday, July 04, 2008 | 3 comments »



I'm on a roll with the low PEG - high ROE - low market cap - EPS surprise screen. Overhill Farms OFI turned up(bottom scroll down) and stuck out in late February of this year and had a 76% run since I mentioned the stock.

I mentioned Heelys (HLYS) about a month ago as a good company to be looking at as a turnaround. Altucher likes Heelys and some others to. I'm not desperate to back up the truck just yet...though it keeps finding a bottom at $4 around their cash per share which is $3.70. The long-term success of the company is still to be seen.

Think or Swim (SWIM) looks tempting below $7 a share but I think the better contrarian play would be even cheaper with a margin of safety.


full disclosure: no position in SWIM, OFI, HIMX

3 comments

  1. Eric J. Fox // July 4, 2008 8:55 AM

    On Heelys...one question is how stable the cash per share is every quarter. Has it been declining or stable?

  2. Mark Perkins // July 5, 2008 7:46 PM

    increasing. except for quarter ended June 07.

    cash per share
    2.55 March 07
    1.96 June 07
    3.30 sep 07
    3.65 dec 07
    3.70 march 08

  3. Eric J. Fox // July 7, 2008 8:17 AM

    Thanks...adding it to my watch list.

Post a Comment

Subscribe to: Post Comments (Atom)