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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (22242)10/12/2005 10:50:07 PM
From: muwis123  Read Replies (1) of 78576
 
TPX - I own this one. I'm hoping it won't go the way of the housing bubble. The consensus seems to believe that though. Also, with gasoline prices where it is, consumer spending will be hurt. That certainly won't help move their high end products.

On valuation, the stock looks cheap even assuming a pessimistic year for 2006, say flat EPS , despite expanding into 90-100 more stores next year. I think with a little patience, the stock will do well. I expect it to double in two years with little downside risk from here.

My guess is that we're seeing a lot of tax loss selling and portfolio repositioning away from economically sensitive stocks.
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