Cheap Shares This Week: Back Where We Started

Welcome to the inaugural edition of Cheap Shares This Week - a summary of the week's events in the world of value investing and some other stuff.

Rumor has it the All Ordinaries Accumulation Index finally reached levels not seen since before the onset of the global financial crisis.  The accumulation index includes dividends, so while the All Ordinaries Index (the one you normally see on the news and hear in finance reports) is still well below pre-GFC levels, if you look at the total return including dividends, we are finally back to where we were in November 2007 - nearly 6 years ago.

So much for buy and hold.

Reading For This Week

This week's article is a seminar by legendary value investor Walter Schloss.

Columbia Business School Upper Level Seminar In Value Investing - in this 1993 seminar Schloss recalls his investing adventures including experiences with both Benjamin Graham and Warren Buffett.  It's 12 pages, but well worth reading.

Interesting Investment Ideas

Each week I rummage through the basement of the ASX in the hope of finding some hidden treasure.  Mostly the shares to be found here end up in the basement for a reason and should be left undisturbed.  But occasionally there is treasure to be found among the trash.

Please don't take any of the stocks listed here as recommendations.  You should always do your own research and obtain independent advice.

Hudson Investment Group Limited (ASX:HGL) fell 33% this week.  HGL is a mixed bag of assets and operating businesses.  I couldn't find any company announcements or other news to explain the fall.  What piqued my interest in HGL was the share price falling below 7 cents against net tangible assets of 11 cents.  I'm putting this one aside for further research.

Orbital Corporation Limited (ASX:OEC) fell almost 20% as well.  The company operates in the Automobiles & Components sector, specializing in engine technology. Like HGL, OEC is trading at a discount to NTA.  However, I have concerns about OEC's debt and its ability to generate positive cash flow.

Other News

Cheap Shares quietly celebrated being in existence for a whole month this week.  And what better way to celebrate than to entertain our very first unsolicited visitor.  Cheap Shares this week received its first ever visitor. While they didn't stay long (they only viewed 1 page) it was a start.

That's it for this week.  Happy investing!