James and Mike,
Here's a beauty. ENC. A company producing
collectible figurines. That gives some brand
name protection and loyal customers. Margins are
great, cash flows positive and enormous. The company
turned around this year - sold the money losing
direct marketing division, changed name to Enesco from
Stanhome. Trades at 1 PSR, ~16 PE, depending how you count
it. No debt. Repurchased ~1 mln. shares. 3.X dividend yield.
Reported yesterday with good results. There may be
a pop up in the near future as PEs are updated (cf PSO).
As a negative - the CEO is paid some enormous salary.
A friend of mine made killing on DFS, which is
in the same business. Now DFS is no longer a great buy,
being more expensive at 3.X PSR,
but then they did not need to turn around. :-)
Another thing. What do you guys think about ELY
at these levels? Here's another NKE deja vu. A well known
baby-boomer stock. My broker says that a bunch of
his clients follow it. Which means that you'll have a NKE story -
it will recover (or bounce up to fall again) much sooner
than the real recovery. The 64K question is whether the
story is intact. Same question as NKE. If golf is growing
only 1-2% like Aldila quoted, the ELY growth might be
unsustainable. It may need overseas expansion as NKE does
to show good numbers. OTOH, it's a cash machine,
so buying now is OK too. It's trading at ~1.2 PSR using
last 6 months. That's good. PE is 11 or 14 depending whether
you use this quarters result or the last 6 months result.
However, the inventories and AR are still ugly.
I'd wait for <$10 or for a glimmer of recovery.
Comments?
Jurgis |
