DORMAN PRODUCTS

Here is what they say about their company on the web site. https://www.dormanproducts.com/Pages/corporate/history.aspx

"New Since 1918", Dorman Products is a leading supplier of original equipment dealer "exclusive" automotive and heavy duty replacement parts, automotive hardware, brake parts, and fasteners to the Automotive and Heavy Vehicle Aftermarkets.  New to the Aftermarket is our exciting niche allowing us to provide hundreds of new products to our customers and end-users each month and thousands each year.”

Dorman is a supplier to the major automotive  retail parts outlets in the US. Domiciled in Colman Pennsylvania they also have a presence in Asia. 

Why I like it:

1. It has an 11% historic five year sales growth. 
2. A 13% Earnings per share rate of growth for the same 5 years.
3. Pre tax profit on sales is 18% and 19% earned on equity. 
4. It has zero debt and has a current price to earnings ratio of 19. 
5. It pays no dividend so is a growth not income stock.
6. It is just barely in the buy zone which is $43 - $65. Today’s price is : $61.14. Ticker symbol is DORM.

Consumer confidence is up and that may be detrimental to this stock that focuses on after market not new. It really needs lots of used cars. If people buy new then the parts business is slow. We will see.


Our Portfolio:

100 shares DORMAN INCORPORATED  01/01/2018 Cost $6,114 Value $6,114. 

Year End Report

Well we did good in our fantasy portfolio this year. Of course it was not rocket science this year with the markets at record highs you just needed to be in almost anything. The Dow Jones Industrial Average is up to date almost 25%. The S & P 500 a better gauge is up 19%.

In our portfolio of 12 stocks we had 8 winners and 4 losers. This was good but not as good as the overall markets. Our performance was 13%. We lost in oil, healthcare, and trucking. We won in aviation, retail, banking, housing, and used auto retail.

Our biggest gainer was Jones Lang LaSalle Incorporated. It gained 56%. This was our real estate nitch. Air lease Corporation was our runner up with a 27% gain.

Our biggest loser was in the oil equipment sector with Dril-Quip down 27%. It’s still a good company  going forward but just out of favor. $60 will help this one in 2018.

So here is what we did in 2017

AL cost basis $3,792.00 value is $4806.00 = $1024.00

DRQ cost basis $6,547.00 value is $4,755.00 = - $1,785.00

DNKN cost basis $5,273.00 value is $6,565.00 = $1,292.00

CGI cost basis $769.00 value is $635.00 = - $136.00

SRCL cost basis $7,719 value is $6,779.00= -939.00

LULU cost basis $6,855.00 value is $7,909.00 = $1,054.00

GNTX cost $1,856.00 current $2,105.00 = +250.00

BNS paid $5,408.00 value $6,463.00 = +$1,055.00

TSCO paid $6,667 value $7,521.00 = $854.00.00

KMX paid $5,444 value $6,541.00 = + $1,097.00

LCI paid $3,238 value $2,440.00 = - $798.00.00

JLL paid $9,699 value $15,081.00 = + $5,382.00

So our total gain was $8,331.00 or 13.16%.

We will start over in 2018. This is fun and educational for me. I hope it helps you.

Here’s what I am exploring for our next stock.

1. TOL or Toll Brothers a real estate business.
2. GLW or Corning Corporation an high tech and glass company. Make screens for iPhone X.
3. ALK or Alaska Air Group more than an airline also a major shipping source in Alaska.
4. PAYC or Paycom Solutions a payroll service company in OKC.
5. PZZA or Papa Johns International a Company in the political bullseye right now. Founder and CEO resigned, numbers lower, compitetion from companies like McDonald’s and Buffalo Wild Wings starting to deliver could cut into their pizza delivery. We will see. Speculation.

Last year we did one company a month. This year we will do two and select all 24 by July 1, 2018.