This month's choice is a stock that I've had my eye on for years, but never gotten around to buying - until now.
Cherokee (CHKE) is a marketer and licensor of fashion brands and trademarks. Their primary licensing agreement is an exclusive deal in the U.S. with Target. Predictably, there is little overhead associated with this business model - leading to incredible margins, return on assets, and return on equity - which in turn allows for no debt, positive cash flow, and a healthy 10% dividend yield.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Terra Nitrogen (TNH) 10.96%
Dominion Resources Black Warrior Trust (DOM) 10.30%
Southern Copper (PCU) 9.59%
Google (GOOG) 9.17%
Apple (AAPL) 9.14%
Tesoro (TSO) 9.09%
Ace Limited (ACE) 6.02%
The Distressed (AIG, BX, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 5.76%
Frontline (FRO) 5.68%
American Software 4.96%
Tidewater (TDW) 4.25%
Atlas Energy Resources (ATN) 4.18%
Biovail (BVF) 3.36%
Cherokee (CHKE) 3.36%
Apache (APA) 3.28%
