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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (4701)8/19/1998 12:11:00 AM
From: Coolwire  Read Replies (1) of 78628
 
Featured a few days ago in the WSJ was an Lufkin Industries (LUFK). It pays a good dividend and earnings are growing at 22% per yr. It yields about 2.2% which is growing at 4% per yr. Note the yield is above the current mkt average of 1.3%.

Its PE is low at 10.48. It has several businesses: it makes oil production equipment, which is depressed now, but its truck trailer unit is picking up the slack, and then some, but analysis lump it into the oil service sector. So this may be depressing it. The stock appears to be timely as VectorVest says it has change 286% from its 50 day moving average. (maybe due to WSJ coverage, last Wednesday, in the "Texas" journal part of the WSJ.

The stock has risen about 10% over a recent low, but is still a good buy, IMHO.

Regards, Jarrett
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