Saturday, December 10, 2011

"One from Super Mario and his team with improving fundamentals and a good value price. Dana Holdings Corp. (DAN)"

Dow Jones Indusrial Average (UP 800!!)  12,019  Week ending 12-02-2011

Our never ending search for stocks with good fundamentals this week leads us to the top five list of Mario Gabelli and his crack team of researchers at GAMCO Investors, Inc. (This blog is a continuation from last week, running late). Mario for years has identified the macro trends and stocks that will do well based on those trends. In this case, the discovered stock is that of Dana Holding Corp. (Symbol DAN, $12.26) . Dana, the supplier of axle, driveshaft, structural, sealing and thermal management products for global vehicle manufacturers turned the corner to profitability last year after years of miserable losses. The company is projecting earnings for 2011 of $1.65 per share and for 2012 of $1.88 per share.  The auto parts stocks have been a pretty good area over the years with successful companies like Autozone, O'Reilly Auto Parts, BorgWarner and Genuine Auto Parts.

The numbers role out a little strange on this one. The one year total return this year is (-28.8%) on the stock. However, the  3 year total return on the stock is 1556.8%.  The forward PE on the stock is 7.4,  so it is quite a good value right here. Investors are going to want to see some consistency here so this price will move up more slowly but this is what gives you the opportunity to purchase. Our theme is 1 year to 3 year investments so this fits in quite nicely. 

Mario has some other good stuff available in these turbulent times.  My broker recommended to me the Gabelli Utility Trust, (Symbol GUT,$7.46). This investment is up 14.04% this year, but more importantly it pays an 8.04% dividend and it pays that dividend out monthly!  In this environment that is a really good thing keep you moving forward.

I have been very busy, sorry I was a week late. I will try to catch up this week. Please keep those Euro folks on the straight and narrow so we can keep this rally going.


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