Still waiting for the market to have even a mild selloff. Exited my position in Fortune Brands (FO) at $80.00/share today - not quite the 52-week high I mentioned in my last post, but close to it. While I think FO has solid businesses that are worthy of owning, it is no longer a bargain as it was this summer at the sub $70/share range.
One bargain among the financials has popped up in my valuation model, which I will hopefully limit into tomorrow at $77.50/share. Capital One Financial (COF) is cheap at less than 10 times 2007 earnings, a good value play. S&P has it rated as a four-star buy, Morningstar has it rated as a three-star hold, both as of November 13. Cramer commented on the shares today in a market update segment, suggesting the shares would move into $90/share territory.
One other potential bargain that bears watching is Washington Mutual (WM), which I would buy more of if it were to dip to $41.00/share or below. Washington Mutual is a solid bank with a very attractive yield at nearly 5%. I have held WaMu for nearly five years, and have also been a customer there for nearly as long.
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