Substance and style

Quality stocks never go out of fashion, money managers say

BOSTON (MarketWatch) -- Brent Wilsey of Wilsey Asset Management in San Diego, Calif. says that what many investors viewed as a trash rally in 2009 was in fact a chance to buy solid companies on the cheap, and he expects stocks with solid numbers to be strong even if the market is squishy.

During an appearance on "Your Money with Chuck Jaffe," Wilsey said investors need to look at companies with a strong balance sheet and real growth numbers, noting that there are a lot of stocks which, thanks to "accounting trickery," look better than they actually are.

"A lot of people equate quality to the name," Wilsey said in urging investors to dig deeper. "The name means nothing at all. Does the company have a strong balance sheet? Do they have cash; do they have earnings, do they have good management? "Quality will always win out," Wilsey added...

He warned against a few stocks that have numbers that look better than they really are, citing CB Richard Ellis Group (CBG 13.32, -0.10, -0.75%) as looking good based on "accounting trickery" and amusement-park operator Cedar Fair (FUN 11.22, -0.09, -0.80%) as having numbers that might fool an average investor into thinking everything is fine when, instead, Wilsey said, it's a stock to avoid....

He urged investors not to make buy decisions on partial information when they can be patient and wait for complete disclosure to ensure that a stock lives up to their standards.

http://www.marketwat...nk=MW_news_stmp

No, really? lol

I wonder if anyone can / will snatch up the FUN trading name post-Cedar Fair? Can they do that? But it surely must be a sought after name... How many companies out there would love being FUN?

Post Cedar Fair? Perhaps that is the symbol Q intends to keep for it...and not take it private.

Or not.

Seems as though people are heeding this advice. FUN is trading under $11.00.

Seems as though people are heeding this advice. FUN is trading under $11.00.

Might help the Apollo deal go through it is stays that way?

Being a fan of the Apollo deal myself (though admittedly my knowledge of the deal is limited and I am not a unit holder) I hope that will be the case, though I doubt it. I believe Terpy's theory that Q has an agenda that goes farther then simply blocking the sale. The lower the price the more units Q can get for their money.

Seems as though people are heeding this advice. FUN is trading under $11.00.

Might help the Apollo deal go through it is stays that way?

I would say no. The people selling the stock right now, will more than likely NOT be voting for the deal. By voting with their feet, these unit holders are voting NO.

People are probably abandoning the stock as they believe that the deal will not go through, and the stock will be stuck with a tremendous debt load and go back to around the $9 range until its operating environment improves. In essence I would imagine quite a few of these people just don't want to mess with the stock anymore, which does happen!

I have never really followed the stock market closely, I did however play a stock trading game and did purchase some FUN stock. This article intrigues me to learn more of the stock market.

After trading below $11.00 briefly today, FUN actually closed up five cents at $11.27. Looks like our friends at Q may have went on a bit of a buying spree this afternoon.

After trading below $11.00 briefly today, FUN actually closed up five cents at $11.27. Looks like our friends at Q may have went on a bit of a buying spree this afternoon.

Although you could be right, I doubt it, there did not look to be that kind of volume in late trading...

a. The record date to vote has long since passed. This means if you buy units now, you cannot vote on 031610. Conversely, if you have sold since the record date, you still can vote on 031610. Only owners as of the date of record can vote and/or attend the meeting.

b. I am not quite sure what Q is up to once the deal is blocked, if it is. As a Limited Partnership, the common units have no say in the day to day operation or management of the company. I bet they have something up their sleeves, though. I doubt sincerely they intend to sit idly by passively waiting to collect their non-existent distributions.