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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (8795)	10/28/1999 6:08:00 PM
From: Paul Senior	Read Replies (2) of 78654

With today's market surge, it seemed like a lousy day for value investors to be buying stocks. But I've still got one more I like. I started a small position in Unifirst (UNF). It's a uniform rental company that competes with lots of Mom & Pops as well as several big players. Among them Angelica and Cintas. Angelica seems to me to be a terribly mismanged company. Although they do have a new CEO now. Still, AGL stock price - at about a 10 year low, suggests that are some problems (and opportunities). Plus there's an 8%+ dividend yield (which I interpret as a warning signal). Cintas (CTAS) is by far the dominant company in the industry. And the stock price reflects that - higher pe, higher psr, etc. UNF has issues too. Earnings this year may come in lower than last year. The company is family controlled and dominated. It is a business with mediocre ROE. Debt/equity is .38, double previous years. I like UNF @ $12 1/2 though because: 1. For paying a pe ratio of 8, you get a company with 30 years of continuous revenue growth. 2. PSR, P/Bk, and PE are all now lower than average in past several years. 3. The stock is selling at about a 4 or 5 year low. Paul Senior

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