Finding the Value in Crap
It’s been a while since I have opined on the stock market. Mostly because I have had other more important things to say. Nevertheless, I still pay attention, and I think you should, too. Recently, Morningstar rated 20 stocks as “Undervalued and Sustainable,” which appeals to me because I hate overpaying for things, and want whatever I buy to be around in a decade or so - since I plan on that, too. I went over the list (as you should, too) and found five that appear to be attractive in today's environment, and have some risk involved, with the requisite reward at the end of the supposed rainbow. Mattel (MAT) looks like a disaster now, but t heir capital-allocation program has committed an incremental $250 million-$300 million to business improvements in 2017, potentially helping speed up the profit turnaround. So, if you are confident in their ability to turn the existing portfolio into a profitable enterprise, you could find a bargain h...