The TenStocks model takes both a top down and a bottom up approach to creating a model with deep value and special situation investments. The model currently has four holdings and is long only.
The top holding in TenStocks is Bank of America Corp (NYSE: BAC). BAC has had some bad press this year, mostly stemming from foreclosure issues. Their net income has been declining, falling from $15 billion in 2007 to $4 billion in 2008, then to 2.3 billion in 2009. Their total liabilities rose from $1.6 trillion in 2008 to $2 trillion in 2009, but their shareholder equity has increased from $146.8 billion in 2007 to $177.1 billion in 2008 to $231.4 billion in 2009. Common shares outstanding rose from 5 billion in 2008 to 8.7 billion in 2009.
Another top holding in the model is semiconductor testing and packaging company ChipMOS TECHNOLOGIES (Bermuda) LTD (NASDAQ: IMOS). IMOS’ total revenue has fallen over the past three years. It was $7.3 million in 2007, $5.2 million in 2008 and $3.8 million in 2009. Shareholder equity fell from $6.7 million in 2007 to $4.3 million in 2008 and $2.4 million in 2009.
The third top position in the model is ENSCO PLC (NYSE: ESV), a company that provides offshore contract drilling services. ESV’s net revenues grew from $2.1 billion in 2007 to $2.5 billion in 2008, then fell to $1.9 billion in 2009. Total shareholder equity rose from $3.8 billion in 2007 to $4.7 billion in 2008, then to $5.5 billion in 2009. Outstanding shares have increased from 141.8 million in 2008 to 142.5 million in 2009.