24 Nov

Xerox ($XRX)

MacroValue has an interesting take on Xerox. The thesis is that Covid-19 hit companies whose main business is providing consumables to offices like a spoonful of novichok. Although most businesses have seen their shares recover beyond where they were at the end of 2019, Xerox is an exception. It is currently trading at around 4.8 times free cashflow, which has tempted insiders to buy and even buy on the openmarket. This is not advice. You should always do your own research, but it might be an old economy stock that suddenly becomes a meme.

Cato Corp ($CATO:NSQ)

Cato Corp is a fashion retailer that operates its own credit card. It has some fairly extensive land development interests, and managed to be cash flow positive this year without raising any finance.

It is trading at a P/E of around 11, which may seem high for a business that is in direct competition with Amazon, but unless you expect shops to disappear completely, it might get a re-rating any time now.

To add to the interest, there has been recent insider buying.

Do your own research.