Graham and Doddsville -- Value Investing In The New Era Message Board

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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Axel Gunderson who wrote (558)	7/30/1998 3:12:00 PM
From: Axel Gunderson	Read Replies (1) of 1722

One of the "farmer's stocks" I mentioned was Nalco Chemical (NLC). Their primary competitor Betz Labs (BTL) was purchased today by Hercules (HPC). I suggest that you look for yourself at the premium take over price. Nalco Chemical was a much better value by free cash flow and financially stronger than was Betz. My understanding was that they may have had a better product line as well. If we assume that Hercules is a rational, informed investor in this line of business, then it would seem NLC is indeed a value. Avnet (AVT) reported yesterday. While EPS did not look exciting, business looked OK to me, and they did a lot of share repurchasing. In the past year they have repurchased about 4 million shares (about 10% of those outstanding) and from the looks of things, about half of those this past quarter. Fleetwood (FLE) has pre-announced that they are doing bang-up business. In other farmer news, Hew Holland (NH) and AGCO (AG) have reported quarterly results in the last couple of days. We may be looking at being just past the peak of the cycle for ag equipment. If we are somewhere in the vicinity of the peak, that would explain the seemingly low valuations of these companies. Axel quote.yahoo.com

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