Stock Idea Series

Stock Idea SeriesEvery now and then an idea strikes me, and I wonder if it would be worth trying.  Here’s one: much of the stuff that passes for analysis of stocks on the web leaves me cold.  It feels like a computer spit out a few ratios, with standard verbiage.

What if I chose some stocks at random, and analyzed them?

I set up a random selector for 10 stocks relative to their market capitalization.  My first group of 10 came out as follows:

  1. Sun Life Financial Inc. (USA)
  2. Vodafone Group Plc (ADR)
  3. ORIX Corporation (ADR)
  4. C.H. Robinson Worldwide, Inc.
  5. Nippon Telegraph & Telephone C
  6. Ms&Ad Insurance Group Holding
  7. National Grid plc (ADR)
  8. Greenhill & Co., Inc.
  9. Carnival Corporation
  10. TTM Technologies, Inc.

I’ve heard of #10, but don’t know what it does.  I have not heard of #6, despite my knowledge of the insurance industry.  The other 8 I know something about.  My inclination would be to go for the ones I know nothing about.  Odds are there is no coverage of them at all, at least in the US.  I would likely choose #6.  So what is it?

MS&AD Insurance Group Holdings, Inc. is a Japan-based holding company. Through its subsidiaries and associated companies, the Company operates four business segments in both domestic and overseas markets. The Domestic Non-Life Insurance segment is engaged in non-life insurance businesses. The Domestic Life Insurance segment is engaged in the life insurance businesses. The Overseas segment is engaged in the overseas related businesses. The Financial Service and Risk Related segment is involved in two divisions. The financial service division is engaged in the asset management, financial security, 401 k, alternative risk transfer (ART), personal loan and venture capital businesses. The risk related service division is engaged in the risk management, nursing care and asset evaluation businesses, among others. As of March 31, 2011, the Company had 121 subsidiaries and 28 associated companies.

It’s not a small company.  The market cap is $11 billion.  This one seems complex — looks like fun. :)

Run the random selector again, and I get this:

  1. Gladstone Commercial Corporati
  2. Alliant Techsystems Inc.
  3. Cemex SAB de CV (ADR)
  4. 3D Systems Corporation
  5. Canandaigua National Corporati
  6. Goodyear Tire & Rubber Company
  7. PHI Inc.
  8. Royal Bank of Canada (USA)
  9. Edison International
  10. Rayonier Inc.

I know something about 7 out of 10. Numbers 1, 4, and 5 are a mystery to me, and respectively, they are a REIT, a 3D printer company, and a small bank holding company.  I would probably choose #4 for the analysis, because it is more fun for me to analyze a nonfinancial company.  Maybe I should choose differently because I understand financials better than many.  Advice is requested.

I filter out companies with less than $10 million of market cap, and CEFs & ETFs.  Now, I’m not sure how much time it would take me to write these out.  If it’s too much, I won’t do it.  But if I did do it, how much interest would you have?

Now, the natural inclination is for those with some interest to write me, and those with no interest to be silent.  I’d really like to hear from those with no interest.  Regardless, let me know in the comments section.  Thanks.