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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!