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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (8003)	8/11/1999 9:45:00 PM
From: Shane M	Respond to of 78821

Grommit, Thanks for mentioning HGR. It looks like after many years of sub-par performance management has started focusing on ROA and ROE. The other part of HGR that I like is that you can get a solid growth rate (20+%) along with it. You get margin expansion and potential for multiple expansion with PE at @15. To a degree I liked the way the company was looking _before_ the acquisition of Novacare added the debt to the balance sheet. The acquisition sortof throws a monkey wrench into things. Clearly though, things were improving dramatically before the purchase. Thanks again for mentioning Shane

To: Grommit who wrote (8003)	8/11/1999 10:22:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78821

HGR is a 'could be'. I'd guess it depends on the pe multiple you accord the earnings. And that pe has been all over the place in past years. HGR's never earned better than 10% on its BV. BV is 9. So, analysts' estimates I see about .90 for this year look reasonable to me. At current price-- 13-13 1/2, it might work out okay. That price is about 1.5 book which seems fair value to me. For me, nothing catching my attention to look further. JMO after a 3 minute look. (But I've been wrong many, many times before.) Paul Senior