What a missed opportunity! KOSP was bought by Abbot Laboratories in a deal announced on November 6th, which sent the price rocketing 53.8% on the day. As of the close on Friday Nov 10th, KOSP stands at $77.31. Ah well, can't win 'em all. Hopefully some lucky people who have been following this website will have bought KOSP.

This event reinforces for us the notion that value investors should look for quality companies with falling prices that nevertheless have impressive amounts of cash and healthy cash flow from operations (CFO), as these companies will frequently turn out to be takeover targets because the buyer can typically finance the takeover deal with this cash and cash flow.

The market has continued going up in October, which goes against historic trends as mentioned in a previous blog entry. The ideal thing to do if the market doesn't do what we expect is just to ride it...as a result our portfolio still looks healthy, as seen in the latest Portfolio Performance Report.

A BMW Stock Screen has been added as an experiment to help find stocks with EPS growth that is way ahead of the price. Currently only those stocks over $1B market cap are considered, and P/E must be less than 30, with positive EPS.  More on this in a later post.

TGI