After selling off my oil and gas investments, I had a lot of cash lying around, and I realized that TD Ameritrade was paying me a really lousy interest rate. I thought about putting all of it into a short term bond ETF, but then it occurred to me that a great investor like me can surely do better than that. So here are some of the stocks I purchased:
Tyco Electronics Ltd. (TEL) - Tyco Electronics just split off from Tyco International. This purchase is based solely on the fact that the electronics part of Tyco has a low P/E ratio. Management is predicting a low growth rate. A basic value stock. This is a rare case where I invested in a large cap company.
Empire Resources Inc. (ERS) - A tiny company (99.86 million market cap at this moment) that resells semi-finished aluminum. Why don't the buyers just skip this middleman and go directly to the aluminum mills? I don't know, but Empire Resources seems to have a history of steady income and a low P/E ratio. It's one of those value stocks that big funds with billions of assets can't invest in.
Pogo Producing Co. (PPP) - Wait, didn't I swear off oil and natural gas stocks? Well, I suppose it was a mistake to want to be completely out of this sector. PPP has a low P/E ratio compared to its peers and recently completed a favorable sale of some of its non-core assets.
Spherion Corp. (SFN) - A temporary and permanent staffing company with a market cap of $525 million. It seems to be a poorly run company, but it's really cheap from a balance sheet perspective, and it's not losing money - in fact it had eight consecutive profitable quarters - so it seems like a good opportunity to buy and hope that management improves or the company is purchased by someone else.
I will post even more stock picks later this week.