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Attractive Evil Companies

May 12, 2008

It looks bad for the financials, now is the time to turn your eyes to evil companies who can earn you a cent or two.

Let start by looking at a cheap porn company, no I don’t mean it sells cheap porn, the company itself is cheap. Well let’s say both!

Anyway, you should be considering placing your money in a company like NOOF, it pays something around 10% dividend and its trading around $5 as of right now. You should take note that it is a small cap company with a low P/E, it’s not valued like a growing company. There is bearish sentiment around this company even though some eye popping insider buying. It’s good to know that the management isn’t just talking, they’re actually placing money in their own porn.

My next candidate is a tobacco company, Vector Group Ltd. Ticker symbol: VGR.

As I’m writing this the stock is trading around $17.43 with a 9.3% dividend. 9.3% return on capital just for waiting, hm juicy. I don’t really need to comment on the company. It’s a simple business it sells tobacco. People need to light up their cigs since we’re heading into a recession :D. Unlike NOOF it doesn’t need to worry about the internet stealing market shares, since free porn is way more popular then pay-porn.

Guns + democrats + gun laws equals a cheap company under the name Sturm, Ruger & CO.

RGR is definetely my favourite of the three sin stocks. Beaten way too hard, all the way from $22 down to $7.50-$8. I actually bought shares of RGR at $7.69, I personally invested very little in VGR, none in NOOF, I put most of my money in RGR. Let’s get back to the company itself. Their products are favorized by many gun owners, there has been some minor insider buying. The company is worth $160m, if they would sell 1million SR9 guns that would equal $300 million in revenues. That probably won’t happen but they could very easily swing up fast. SR9 is very well liked ( ask your local gun owner ). SR9 is the perfect turn around thing they needed.

Conclusion: remember sin stocks tend to beat the market under recession times!

http://mulzar.com <- A Blog about Sin Stocks!

Article Source: http://EzineArticles.com/?expert=Arash_Khansari

Entry Filed under: Company. .