Domtar Corp (USA) (UFS), GrafTech International Ltd (GTI): Four of the Best Stocks Offering Good Value

Page 1 of 2

Buying into a good company won’t mean much if you pay too much. I employ a buy-and-hold approach, but I often ask myself if I can get shares at a better value. Don’t get me wrong: I’m not trying to time the market or call the top and bottom. Rather, I simply choose to be patient when building a position. If shares of a company on my buy list are a little hot without good reason, I’ll wait for things to normalize. It doesn’t always work, but there are plenty of places to look for new money. Looking for a few? Here are four of the best stocks on my watchlists offering good value.

Domtar Corp (USA) (NYSE:UFS)

Biglari Holdings Inc(NYSE:BH)

The holding company has been featured in “10 Stocks Ideas for June” and another article by my colleague Michael Lewis. It didn’t seem to have had much effect on Mr. Market, but they certainly got my attention. The company has a market cap of around $590 million despite owning nearly $460 million in Cracker Barrel stock (a 20% stake) and all of Steak ‘n Shake and Western Sizzlin. Whether or not a new dual class structure will help bring more attention to the company remains to be seen (B shares would trade in the mid- to high-$20 range, compared with $400 per share today). However, there is definitely an undeniable value opportunity brewing for investors.

Domtar Corp (USA) (NYSE:UFS)

This established pulp and paper player is scraping against new 52-week lows despite an improving financial picture and a dividend that yields over 3%. Shrinking margins and cash-flow warrant some concern, but an improved focus on diversifying its business should help. The company has acquired four personal-care businesses in the past two years, including a recent purchase of AHP, which is the nation’s largest manufacturer and supplier of store-brand diapers. After sharing many classes in college with paper-engineering students, I could go on all day about the differences — or lack thereof — between brand name and off-brand paper products. But … I’ll spare you a detailed talk on diapers. The point is that the market is healthy, recession-proof, and bound to help Domtar Corp (USA) (NYSE:UFS) return value to shareholders in the long term.

Gevo, Inc. (NASDAQ:GEVO)

The developmental-stage synthetic biology company may soon be ready to live up to its lofty potential after restarting commercial operations. Don’t expect an overnight turnaround: It will take a few years to really ramp up its isobutanol business and gain access to more facilities. Still, revenue should jump from a measly $24 million in 2012 to more than double that in 2014.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!