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Strategies & Market Trends : Value Investing

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To: kahunabear who wrote (4611)	8/5/1998 7:16:00 PM
From: James Clarke	Read Replies (1) of 78702

Nice catch. The earnings report looks awful on the surface, but go back to the argument about the accounting made two weeks ago. 97 cents of pro forma trailing earnings looks like a p/e ratio of 13. But I have argued that you should add back the project development cost line item after tax. This brings earnings to $1.79, making the "economic" P/E 7.3x. And, as you pointed out, its always nice to see a business which is supposedly in terminal decline signing new long-term contracts in new markets. This one will require patience, but I bought a full position at 14 1/4. I was willing to pay much more. I am willing to double that if the stock drops another point. And you all know my view of the market. Jim

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