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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (65238)	10/22/2020 2:45:45 PM
From: Elroy	Read Replies (1) of 78774

Avg cost around $7.50/share as I already sold off my high cost shares for a gain. Yeah, I think I followed you in this one, without doing much research beyond the company is involved in food logistics. You say fair value is $30. How do you determine that? Is it PE, price to sales, or what? I think UNFI's current PE is about 7x or 8x, whereas food stocks (I think) often trade around 20x or so, the idea being food is going to sell regardless of the economy, so a food company deserves a higher than market PE since consumer staple sales more reliable than consumer discretionary. UNFI gets a low PE because....???? Any idea? Why only ~8x PE for a food logistics company? It seems like it should be higher than average, rather than lower than average. It's not that easy to just change consumer logistics providers, one would think.

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