Algoma Central Corp T.ALC

A new Ben Graham stock

[Torontojay]

For many years Ive always been intrigued by Graham's criteria for investing. Every now and then I would add a pick or two from this short list to include in my portfolio. If one wants additional diversification then it's best to include some American companies as well. The results over the years have been impressive.

Ben Graham criteria ( a Norm Rothery modification) 

1) price to earnings less 15
2) price to book less than 1.5
3) current ratio greater than 2
4) positive earnings in each of the last 5 years
5) eps growth of at least 3% over last 5 years
6) positive dividend growth over the last 5 years
7) revenue greater than $400 million

Algoma central passes this test and is one of 2 Canadian companies to be included on the short list. The other company is Doman building materials (formerly Canwell) A few honorable mentions goes towards Exco technologies which fails the 5th criteria and Granite Reit which passes the test except for revenues being slightly below $400 million.  I will be paying much attention to these companies to see how they fare in 2022.

[dangood]

This one is actually a favorite of value guys and has been for many years.If you look at some of the publications from the Ben Graham Centre for Value Investing at the Ivey School of Business it was first mentioned as a value play back in 1991 and many years thereafter. I also held a company named H. Paulin that was also featured for many years as a value play until it was bought out in 2012. The

[Thor16]

haha I really enjoy that.  Been to a couple like that myself except I didn't hold back on the cold cuts.  Even in a virtual world very few people dial in or ask questions.  Counter-intuitive hey?

[Maxmoe]

Maybe add a #8 to the list.  Must NOT have a controlling shareholder. Especially if it's multi generational family shareholders like the jackmans. Value plays don't get snapped up if the controlling family doesn't want to sell. They just stay cheap.  

[Maxmoe]

Maybe a privatization or other bid is coming that disproportionately benefits mgmt and bod. Cn or cp bid would be nice but they'd all get booted. Why else after reporting record results like the last quarter would mgmt throw cold water on every business segment going forward? I'm just a bit of a jaded cynic but stranger things have happened. I saw and read baker doing the same thing with