Exelon Corporation (EXC), QLogic Corporation (QLGC), Dendreon Corporation (DNDN): One Person’s Trash Is Another Person’s Treasure Portfolio

Finally, we had Orange SA (ADR) (NYSE:ORAN) (formerly France Telecom) reporting, and I knew heading into its first-half earnings report that things wouldn’t be pretty. During the first half, Orange gained 244,000 net new subscribers, but it struggled to get existing and new customers to pay more, with average revenue per user dropping by 12.1% compared with the year-ago period. Overall net income also fell by 38%. However, despite the negativity, operating cash flow isn’t nearly as dire as some investors had expected, with the company predicting a drop from 2012’s $10.5 billion to a figure of more than $9.3 billion, according to Orange’s management. The allure of Orange has been its impeccable cash flow all along, and that doesn’t seem all too disturbed by tougher competition within Europe.

It’s also worth mentioning that we’re a bit heavier in the dividends receivable column, having collected quarterly payouts from both Staples and Dell.

We can do better
As has generally been the case with a market that refuses to go lower, a portfolio composed of deeply discounted and contrarian names isn’t going to be a top performer. Although I again managed to add a few more dollars than the last time we looked, the S&P 500 beat me by 0.3%! I continue to believe that this is a portfolio that will outperform over the long run, but I also would love to see the market going up every day, as it’d give my contrarian names a chance to shine.

Check back next week for the latest update on this portfolio and its 10 components.

The article One Person’s Trash Is Another Person’s Treasure Portfolio originally appeared on Fool.com.

Fool contributor Sean Williams owns shares of QLogic, Dell, Skullcandy, and Orange, but he has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Dendreon, Skullcandy, and Staples, and recommends Exelon and Orange.

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