Wayne,
My opinion here. No glamour, with higher fuel prices and interest rates, their profits are down. They still look underpriced here with a book value of a little over $11. Profits are down about 57% this year so they got hit hard. No surprise there given current market. They are expected, according to Yahoo research, increase profits by 20% next year (Dec. 2001) and over five years grow by 12% avg. They look like a bargain around these prices. It is a long-term bargain, not short term, though. If the market sags more, and I think it will, they could easily fall into low $3 range before they go up, though.
Their business could suffer more next year, though, if there is a recession, so buyer beware.
They had recent acquisitions which were mentioned but not explained as good or bad. I suppose those should be looked into a bit more too before investing. Sometimes acquisitions are not as good as they first appear. Sometimes they are better.
analysts are no help "Results were hampered by a dramatic decrease of net income." DUH from
MORGAN KEEGAN, INC. issued a Daily Note on July 21, 2000 for RUSH ENTERPRISE
My quick 20 minute analysis. Not an offer to buy or sell, yada, yada, yada.
Personally, I think I'd wait for in $3 range. Low 3s. That's just me, though.
Stay in the Black! jimS |
