Re: your NEWS CORP. post. I would do a little more research than looking at a 3 month old VL.
1) Most analysts are predicting $1.40 for fy98,,that gives you 12eps. However many analysts feel it will be much higher.
2) You are looking at an outdated VL where the stock price was $21, wheras the stock has since declined to the BARGAIN BASEMENT PRICE of $17.5.
3) You don't evaluate a company that has just done several acquisitions on current earnings projections, since the acqirer has not had the oppurtunity in bringing out the value thru cost reductions restructuring etc etc , and the future potentials are much higher.
4) The breakup value is much higher than the 17.5 ticker price. (maybe double or triple
5) You have no other stock in the industry that is trading at this
eps multiple and at almost an all time low, when the doubled. What we are now seeing is the runup in those undervalued oldtime bluechips. (Chrysler, GM, RJR Nabisco, Westinghouse, etc etc.).
6) The analysts have started there upgrades. Jp Morgan upgraded last friday with a 23 target price soon. Watch for the rest to follow.
7) The risk is minimul with a $10 book value good earnings 500 mil share (with 1/3 by Murdoch), there is no big downside risk at 17.5 however the upside is huge.
I have spotted several of these undervalued stocks in the last few months (ie Chrysler at 28, Best Buy at 8, RJR at 29, British steel at 23, and many more and have posted these same thoughts then) the rest is history.
Men Mailman
p.s. As to your prejuidice to adrs, what can I say, thats one mans opinion, and I will stick with JP MOrgans upgrade and buy reccomendation at this point time will tell. |
