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Strategies & Market Trends : Value Investing
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To: Graham Osborn who wrote (55850)8/14/2015 11:18:52 AM
From: Paul Senior  Read Replies (1) of 78704
 
Actually, you made the correct point. He's was talking gross margins and not net margins. I'm a user of net margins in my analyses, and based on past few years, I'll also agree with you that margins are thin.

That gross margins have been over 20% in past several years shows some consistency, but what's the big deal with 20%? Isn't that a low gross margin number for a manufacturer?

I pass on the stock at current price based on what I see in its past (low margins). Of course, if business is booming or about to take off, then it'd be wrong to assume future is continuation of past. Stock is/could be a buy. Otoh though, I expect it's pretty hard to have sustainable high net margins or sustainable high roe, if you're primarily a seller (TCPI?) into Wal-Mart or Target--- they'll squeeze you (I presume). But back otoh, if you're a nimble investor/speculator, somebody could be in&out and do well.

TCPI not for me.
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