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Strategies & Market Trends : Value Investing

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To: TimbaBear who wrote (25004)10/14/2006 9:50:40 PM
From: pcyhuang  Read Replies (1) of 78751
 
Reasosns for Disqualifying TSC

"Took a small position to day in TSC"

How can you buy this dog?

Market Cap (intraday): 13.83M
Trailing P/E (ttm, intraday): 108.62
Qtrly Revenue Growth (yoy): 6.00%
Diluted EPS (ttm): 0.029
Levered Free Cash Flow (ttm): -1.30M
52-Week High (24-Oct-05): 4.15
52-Week Low (01-Aug-06): 2.83

Source: finance.yahoo.com

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Since you have asked my reasons for qulifying TSC as a dog, here is my take:

A company with total market capitalization of only 14 million, and ttm P/E of 108.62, Qtrly Rev. Growth of only 6.0%, and narrow 52wk range of 4.15 and 2.83 are sufficient but not necessary reasons for qualifying it as a dog. Moreover, the avg. 3-month daily traded volume is only 2,000 shares.

I think the only exception would be that if the company is an early-stage venture capital type company with an imminent explosive discovery or development in the high-tech or bio-tech arena.

Here again, you have taken words of my posting out of context, and referring the ONLY reason for my argument is the negative cash-flow figure.

I hope that this will end our discussion on this matter.

pcyhuang
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