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Strategies & Market Trends : Value Investing

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To: valueminded who wrote (11924)1/21/2001 2:14:13 PM
From: TimbaBear  Read Replies (1) of 78667
 
On the value front, one stock I like is HKF, hancock fabrics

The recent price was $4.38, and I get a NetNet value of about $1.60, so I don't see this as a great buy at these levels.

They have positive CFO and FCF but don't seem to have any great vision for what to do with it to improve the business(which isn't always a bad thing, as these visions are too often disguised ways of burning cash). I like the fact that they are using the cash flow to pay down debt and to fund the pension plan and to buy back stock, all things that help reduce future overhead. But I think I'd rather look at them again somewhere down the road, maybe in the next major market swoon.

I don't think you would get hurt too badly owning this one, it's just not the kind of value play yet that I'm looking for.

That's my two cents, and it's worth every bit of what you paid for it! :~)
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