Mike, re: ANLY,Bill Miller,PEP
ANLY: the dividend will be paid to shareholders of record as of Aug 13, Friday. How much of the quick move this afternoon relates to the upcoming dividend?
Bill Miller: He focuses not much on PE but return on capital. See this 8/99 article from Money: cgi.pathfinder.com
Here is an excerpt included here for discussion purposes:
Unwilling to accept the idea that value investing was something
that went in and out of style, Miller began to look back at his
picks over the years to try to figure out what characteristics
his winners had in common. "It became clear to me," he says now,
"that low P/E and low price-to-book were not the best predictors
of return." After all, he adds, "crummy" valuations don't
automatically signal that a stock is undervalued; sometimes they
mean that "the underlying business is crummy." The measure that
he locked on to instead--the one that best predicted whether a
stock would be a winner, according to his research--was return
on capital. That is, the companies that did the best job of
creating new value by reinvesting their capital were most likely
to be rewarded with high stock prices.
PEP: Held tough yesterday, more or less treading water today. Read your thoughts on it on valuestocks.net...what is your target? I may take a position. |
