|
First,its is a worldclass manufacturer and distributer of products.Its brands are household names!It has all the necessary infrastructure to keep delivering its products worldwide without the need to gain recognition or build alliances or gain market share!It is as branded as coke,as sears,as ford or any other widely known american/international company!This by itself is huge!Second,like him or not,Dunlap shook this company up-----closed plants--retired excess labor------revamped product lines and acquired another brand name in Coleman!This hurts,but longterm these things are generally perceived as positives.Dunlap made many enemies and these enemies have come home to roost,but they cannot undo what Dunlap accomplished---ie streamlining this company to make it more competitive.Cooking the books is pretty benign compared to what Dunlap did,regardless of what is said!Third,when Sunbeam was suffering before Dunlap took over,I believe it languished around 14 dollars per share when it was at its worst point so I use that 14 dollar a share as a base price.That is if we never even heard of Al Dunlap never mind any competitive improvements he made!This is one of the most important points I feel!Last Sunbeam got hammered and I say thank you!It gave me an opportunity to buy at 6,it was a complete overreaction as is usually the case!Once accumulation begins and it has, a stock rises not always skyrockets like internets, but in nice steady increments.As I see it Sunbeam is doing exactly this!Writing is not a skill I possess so bear with me please.Ihope you will do some research on this stock and not rely on anything I say,but basically these are my reasons on being so bullish on Sunbeam.At 14,I will reassess Sunbeam and see if there is a reason to stay longer ie normal growth rates, pe's and all the other guidelines one uses when they hold a stock,but until then I feel all the turmoil around this company is nothing but noise and i am not listening! |
