Regular readers know I'm a big fan of Meryl Witmer and her firm, Eagle Capital Partners. She consistently makes the most interesting picks in Barron's annual roundtable. I have at times put money in her recommendations -- such as 3i Group (III/LN) and Imagistics International (subsequently bought by Oce).
Sometimes I pass on an idea Witmer offers because by the time it appears in Barron's, the stock price has already shot up. I made that mistake with Chaparral Steel. And again this year with Navistar, which Witmer named back in January.
As Terry Kosdrosky reports in The Wall Street Journal:
Navistar International Corp. has been delisted from the New York Stock Exchange, faces a slowdown in its core truck market and is feuding with one of its major customers.
Despite these headwinds, its shares are up about 85% since the beginning of the year, as takeover rumors swirl and investors focus on projected good times ahead and a significant potential military contract.
The company's share performance demonstrates how investors are increasingly willing to ignore issues that in previous eras might have made them turn up their noses. In a market reaching new highs amid big mergers and access to inexpensive capital, Navistar offers to many an opportunity to get in while a cycle is trending downward, with the potential for an upward swing. Meanwhile, the merger speculation underscores the potential appeal of the U.S. market, particularly for makers of larger commercial trucks, despite signs of softness in some parts of the economy.
Are you at liberty to disclose what is the percentage of your cash position now?
How how does it compare historically?
Posted by: Jeff | May 30, 2007 at 02:41 PM
Jeff: It's more than 25%, which is more than usual for me.
Posted by: John | May 31, 2007 at 12:32 AM