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August, 2025: 3 18 28
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
8/3/25- Am tomorrow adding to our portfolio shares of LKQ Corp. (LKQ) which is in the Consumer Discretionary sector. LKQ makes its money, averaging 12% a year for the prior decade, via used car and truck parts. The stock evidently is down due to earnings having been flat in 2024. The betting, though, is that this situation will not last. LKQ's price to intrinsic value is 0.46. Its earnings yield, based on a forward P/E of 8.64, is 11.57%. The trailing P/E was 10.89. Since the asset has a dividend of 4.05% (with dividend payout ratio of 43.80%), the aggregate yield is 15.62%. Free cash flow is positive, and the P/FCF is a relatively low 11.28. LKQ Corp.'s PEG, P/S, and D/E are all below 1. The price target of $46.33 is 56.31% above the recent price of $29.64. Per Ben Graham, a portfolio of such value stocks should do well, over the long-term beating the major market averages.
8/18/25- The next value pick is oil and gas producer Riley Exploration Permian, Inc. (REPX), which of course is in the Energy sector. The asset is somewhat speculative but has Ben Graham type qualities in its favor. It's price to intrinsic value is given as 0.53. Its D/E is .49. Its trailing P/E is 6.10, forward P/E 6.51. ROIC is above average at 11.78. Earnings yield is 16.56% and the dividend is 5.52% (with dividend payout ratio of .33), so the aggregate yield is 22.08%, well above average. P/FCF is low, 5.22. REPX had revenue of 512% over the past 5 years, but earnings have been zig-zag in that period, recently turning quite positive.
8/28/25- Our total liquid assets, now at $2,366,054 are up $116,400 or 5.17% since the June entry. My wife's and my nest egg of all asset categories is at $2,928,047, up $109,460 or 3.88% from its level at the end of last year.
Our next value pick is OP Bancorp (OPBK), in the Financial Services sector. It is a California, Nevada, and Texas corporation offering banking services to small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. OP Bancorp meets Ben Graham type buy criteria based on a relatively low P/E (9.59) and high dividend (3.36%) plus a low debt to equity (D/E .30). In addition, its price to intrinsic value is given as 0.42. Return on invested capital is 9.74. OPBK's earnings yield is 10.53% and, given the dividend (with div. payout 32%), the aggregate yield is 13.89%. The Peter Lynch PEGY ratio result for OP Bancorp is 0.50, indicative of an undervalued company. P/FCF is low at 9.45. Price to book value is also below average at 0.96.
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My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.