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Strategies & Market Trends : Value Investing

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From: Paul Senior10/7/2005 1:11:05 PM
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I'll take a position in Russell Corporation, the athletic and sporting goods company. A bet on reversion to mean.

Book value hasn't grown in past decade. Stock price most years has traded over book value. Currently the p/bk is a relatively low .8. Price/sales, now .32, has averaged higher in each of the past ten years.

It's possible RML's immediate problems are temporary - hurricane damage/business loss and delayed trade agreements. OTOH, longer term RML is losing some business to Wal-Mart, and the clothing manufacturing business remains brutal.

biz.yahoo.com

I'll bet though the stock can trade at/over $20 yet once again as it has so many times in the past. Maybe sometime within the next two years. That'd be close to a 50% gain from the current $13.72 stock price.

finance.yahoo.com
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