Winners and Losers of 2012
It's important to learn and acknowledge both your successes and failures, and most investors have their fair share of each. I try not to rest on the successes, knowing full well that sometimes these are the result of dumb luck. It's certainly much more gratifying when you have a winner that results from conclusions drawn from your own analysis.
As a value investor, I tend to be drawn to some ugly ducklings; names that the market has all but given up on. These can be hugely profitable if you are correct and downright ugly if you are not. Fortunately, some of these have been my biggest winners for 2012.
Gannett (GCI) had a great year. This name, which was all but left for dead just a couple of years ago, is up 47% year to date. It's finally beginning to get some more attention, and the street is coming around to the notion that the company, which may never again be the powerhouse it once was, can still generate considerable free-cash flow. I recently closed my position (a year-end planning move) but will be looking for opportunities to re-establish a position in the future.
Chemical companyHuntsman (HUN) rebounded nicely in 2012, after a rough 2011. Shares are up about 70% year to date. I also closed this position recently; one that I'd established in 2009, when the company was in turmoil following a failed acquisition by Hexion. In the resulting lawsuit, Huntsman was awarded a huge settlement, which bolstered the debt-ridden balance sheet.