My niche in the stock market is finding extremely oversold stocks and
adding them to my clients’ portfolios. My motto is to buy a stock at a
discount to the market. It is very important to have a strong balance
sheet when looking for companies to buy. I look for companies with a
large amount of cash and very little debt. I look for companies that
trade below book value and cash value. I believe it is easier to buy a
stock that has been sold off, when the company has $0.25 billion in
cash on the balance sheet. I would rather invest in companies with
fewer shares outstanding because it takes less buying to drive up the
stock.
My ideal candidate would be a stock that is very cheap compared to
cash/book value, has a high level of insider ownership, low debt and management that is
taking steps to grow sales and earnings.
Remember, there is risk investing in any stock, and it is important to
do your homework before you buy a stock. The more due diligence, the
better. I always listen to conference calls on the companies whose stocks
my clients own and companies I look to invest into in the future.
There are always companies that are on sale – you just have to go find
them. My clients are looking for value and that’s my job to find it for
them.
Pete Monson
Branch Manager
Minnesota Branch
