regarding Steinway:
Imo, it might be a buy here at current price based on some numbers I'm looking at: relative p/sales, p/book value, growth in book value, and past (avg.) ROE.
Stock is approaching multi-year lows and one wonders (well, I wonder) if the current downtrend might continue because investors believe the current business prospects will not be so good going forward. This confuses me somewhat based on my background. My parents believed a home is not a home unless it has a piano in it, and my wife and her parents believe similar. (Too bad I'm tone deaf with no musical skills.) If we're seeing a boom in household formations, and my anecdotal experience is common, then maybe Steinway needs only to get its share of business for it to prosper.
OTOH, there's stiff competition from China in the low end for Steinway's orchestra instruments, and schools seem (?) to be cutting back on their music classes. With high end pianos, I notice that Japan's Kawai has been very, very active in sponsoring concerts in my area. Yamaha too I believe has long been an aggressive, innovative and well-financed competitor. (I'm no expert on piano companies or pianos though, high-end or not.)
Still, there's that Steinway charisma that the name engenders.
And I wouldn't be betting against you, mikeslemmer, as your picks seem to be doing very well now.
Plus, with a stock symbol like LVB, how could somebody not be a little attracted to Steinway? (-g-)
In my way of looking at it, there are still a goodly number of value propositions out there. LVB's okay maybe, but not a screaming buy, and not better than some other value ideas that have been suggested here. I could see LVB though as a small bet within a diversified portfolio. For now I'll add it to my watch list.
PS = Paul Senior
LVB = Ludwig van Beethoven |
