ECIL, TRW. Well, that makes 3 of us for ECIL. Now I can sleep at nights -g-. (The rule of 3 is never wrong -g-). Despite ECIL's recent disappointing earnings announcement, I'm sticking to my basic assumption which is that ECIL (about $30 today) is okay to buy for the long term holder under $37 because that is the price that I believe "smart" money (Bronfman) made its(his) latest significant purchase.
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I've started a very small position in TRW. Odd conglomerate imo. It's partly and significantly in the auto parts OEM business. Stock is selling at pe of 11. Imo, that is too high a pe given what I perceive as comparable pe's in the auto parts sector. On the other hand, there's a significant technology component with incubator companies, stake in satellites, and broadband technology. Here the 11 pe is too low for what I would expect from a leader in, and/or developer of, these 'fashionable' businesses.
I see it as a tug-of-war as to how the market categorizes and values TRW (whether the pe moves up or down). Given that TRW is selling near a 3 year low, the potential for the conglomerate (TRW has resources to spinout or spinoff, acquire, or develop), I could see lots of good news in the next year. I've started a small position in TRW.
Paul |
