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Strategies & Market Trends : Value Investing

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RWS

To: RWS who wrote (61799)	3/12/2019 5:44:57 PM
From: E_K_S	1 Recommendation Read Replies (1) of 78741

SENEA - I am buying based on stated BV and earnings It's more of a reversion to the mean play as last earnings they wrote down some assets on a packing plant that was closed. As a result a big loss was reported. Maybe a bit more in their next report but once those are behind, EPS and stated BV using the GN valuation model, should show they are undervalued. Not paying a dividend is one consideration (I like dividends) but their FCF and previous stated BV should come in w/ a GN fair value in the range of $32.00-$35.00. I am going from my previous look into their balance sheet which was about 8 months ago. Thought the sell off was over done and as this is a thinly traded stock, if there was one large seller, you do see price movements like this. Also, I believe a large percentage of the shares are family owned (again going from memory) so at some point company could be acquired. Stock is selling at a significant discount to BV so there is vale there. A lot of those BV assets are in real estate and those are stated at cost (not market value). I have owned this in the past and would Buy in the $25.00-$26.00 area and sell in the $31.00-$36.00 area. EKS

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