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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (25126)11/23/2006 10:33:08 AM
From: E_K_S  Read Replies (2) of 78507
 
Your Aracruz Celulose S.A. (ARA) is up over 12% since you mentioned it here on October 25, 2006. I was looking to enter a position below $54 and it never provided me the chance.

Good job on this one. The stock has traded in the $30-$40 range during 2004-2005 and in the $20's since 2000. Do you continue to hold at current levels? The valuation numbers seem ok at a 14 PE, 2.8x book and the continue to generate positive free flow cash.

At what point do you think the price is getting ahead of its self? The dividend is still very attractive at 3.9%.

EKS
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