Nonetheless, I think CWTR can be qualified as a value investment since its PEG (5 yrs. expected) ratio is >1
I'm sorry, but the above is complete and utter nonsense, even if you change the ">" to a "<". It has nothing to do with value investing, at least not any kind of value investing that I understand. I'm not sure what makes it "contrarian" either, but that word has been so abused that it's lost all meaning anyway.
You could make a case for CWTR being a GARP buy at the current price, though even that is a stretch IMO. But there is no way to twist any definition of value, as it is defined by those considered to be value investors, to fit CWTR at its current price.
As I stated before, I like CWTR the company a lot. Investors who buy at the current price and hold for the long run may well be handsomely rewarded - but I think the odds favor those with the patience to wait.
Sorry for the rant, but I get crabby when I see the definition of value investing get twisted beyond recognition. I think it's a sign that I'm getting old, and that we're getting near a market top. |
