Arkansas Best Corporation (ABFS), Staples, Inc. (SPLS), Dell Inc. (DELL): One Person’s Trash Is Another Person’s Treasure Portfolio

Finally, printing services and information technology specialist Xerox (NYSE:XRX) received some positive commentary from Jack Hough at Barron’s, who claimed that it and Hewlett-Packard could return 20% or more next year. It’s not often that I agree with Barron’s, but their assessment of Xerox (NYSE:XRX) is spot-on. The company is in the midst of a big transition from printing services to IT services, and it stands to gain in a big way once Obamacare becomes fully implemented on Jan. 1 as California’s lone Medicaid processing company.

We can do better

If not for Staples, Inc. (NASDAQ:SPLS), this portfolio would have once again easily outperformed the S&P 500 in a big down week, but sometimes that’s just how the cookie crumbles. Over the long haul we still have some very undervalued and attractive names here that I think value investors are overlooking, and I fully expect this portfolio to easily make up the 6.6% underperformance to the S&P 500 and some before the year is up.

Check back next week for the latest update on this portfolio and its 10 components.

The article One Person’s Trash Is Another Person’s Treasure Portfolio originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams owns shares of QLogic, Dell, Skullcandy, and Orange, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Orange. It also owns shares of Dendreon, Skullcandy, and Staples, and recommends Exelon.

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