As I mentioned in an earlier post, I’m a huge fan of Contra The Heard investment letter. The results speak for how well both Ben and Benj invest their money. They focus on beaten down companies that the market for whatever reason doesn’t favor. Often, they set target prices on the stocks that they buy at 3 or 4 times the current share price. Rather than aiming for singles like most investors, they aim to hit home runs. Sometimes, when aiming for a home run, they strike out miserably. This is part of the game for the guys from Contra.
I always pay attention whenever one of the Contra guys ends up on Market Call. Tonight, Ben Stadlemann was the guest on Market Call tonight. The whole hour is worth watching, however I’m just going to spend a little time analyzing the top picks only.
Novell- Is currently dealing with a takeover bid by a hedge fund. Contra bought for about $3 and is looking at a double right now.
Bellatrix Exploration- A former income trust (True Energy) oil and gas exploration company. This company was at the brink of bankruptcy at one point, but new management has helped the company.
C&D Technologies- A electrical storage and battery company. The company has high debt levels but Ben think’s the current levels are manageable. Doing well in China.
Perhaps a more detailed analysis of each of these companies is in the works at a later date. As for now, I’ll just watch the stocks and see how Ben does.