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

To: Freedom Fighter who wrote (8014)	8/14/1999 1:29:00 AM
From: Shane M	Read Replies (3) \| Respond to of 78822

Wayne, Thanks for posting on Flowers Ind. Interesting situation, but I'm not sure how to value the $2,75/share value that's non-Keebler. (Keebler doesn't look to be largely over or undervalued, so I'll assume the market is pretty efficient there.) Flowers does have a lot of quality brand names, but up to now these brand names haven't been able to produce a whole lot of earnings yet ( but have plenty of recurring "non-recurring" charges). That said, they are investing more heavily than in the past, so if that works out on their quest to be the low cost producer then maybe there's hope for improving EPS. I guess it comes down to how much do I pay for probably a fairly probable $0.40-$0.50 EPS a year out, and what are the odds of growth? If the growth story is not good then this is an asset based buy with a sell around perhaps $20/share. If this is a growth story - which some of the elements seem to be in place - then perhaps a longer term hold. I guess I kindof wonder what kind of investment this is for you? I would appreciate your input here. I'm leaning towards making a buy - but probably based on assets rather than growth. Shane