Price to Value Bargains

PRICE TO VALUE BARGAINS - AN UPDATE
by LARRY


	Since there has been a mild to moderate correction in the stock market lately, I thought it might be useful to see if a potential portfolio of several value assets might be available at reasonable cost. The following five were chosen for having met at least one low price-to-value criterion (such as low P/E, P/Bk, or P/S, or else high dividend), in addition to having low debt (no greater D/E than 0.2). Some, in addition, have a reasonably high current ratio (1.5 or greater). All pay a dividend and have a dividend payout ratio of no more than 0.45. While there is no assurance each of these will do well, a group of them together has historically performed better than the market as a whole. These beaten down stocks may not prove to be good long-term holdings, yet each appears to deserve a significantly higher price than it has had for awhile. I would recommend that the investor reevaluate each after a year or so or after it has risen in price by 50% or more, whichever first.

Company	Symbol	Recent Price	Price to Earnings Ratio	Debt to Equity	Price to Book	Price to Sales	Dividend %	Dividend Payout Ratio	Current Ratio
Adams Resources & Energy	AE	$28.21	6.45	0.17	1.77	0.05	1.30	0.09	1.19
Cincinnati Financial	CINF	$46.69	8.17	0.18	1.31	1.82	2.70	0.40	1.32
Friedman Industries	FRD	$7.83	10.20	0.00	1.46	0.30	4.10	0.41	3.21
Metal Management, Inc.	MTLM	$29.36	12.50	0.01	2.04	0.49	0.10	0.13	2.16
Zenith National Insurance	ZNT	$38.91	8.16	0.08	1.93	1.16	2.50	0.20	2.18


	DISCLAIMER Larry is not a professional. Don't take him seriously! Actually, the investment article provided here is for general information only and should not be considered as professional advice, a solicitation to buy or sell any security, or the Word of God. Investors are encouraged to do their own research while considering their personal goals and circumstances, or consult their own professional financial advisors, before making investment decisions. Neither Larry nor LARVALBUG will be liable for any losses sustained by any visitor to this site. (Disclosure statement: Larry and Val have holdings in some of the suggested assets but do not "make a market" in any of them and do not derive any direct benefit from recommending them, except perhaps for a bit of smug self-satisfaction.)