SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: valueminded who wrote (326)7/5/1999 1:09:00 PM
From: Stewart Whitman  Read Replies (2) of 1185
 
Chris,

CTZ - Yes, definitely worth a look as a pure stock pick. It's a cyclic as you point out. It's also been doing a great job at acquisitions. I don't think the outlook is so unfavorable - full employment and low interest rates. I looked back and would guess that a reasonable "average" EPS is around $2.50 to $3.00, with free cash flow in the $4 to $4.75 range - paying 6x "average" free cash flow (i.e. $24 to $29) doesn't seem so bad.

In regard to your other question, nothing is really screaming buy to me in the spin-off area. JCP, TEN, DPH are companies that I would look and follow given your value and safety concerns. DPH might especially suit your profile. It should continue to have reasonably strong growth in its sales to non-GM North America automakers and it should continue to be able to improve its plant operations. Both factors are independent of the degree of economic activity in North America. When I work through my sales growth/margin/PE assumptions, I can't quite get my desired rate of return > 20%, but there's a relatively safe 15% return if you hold for 3 to 4 years. And there's definitely the possibility of more. Delphi's web site delphiauto.com is especially good at providing information.

Regards,
Stew
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News