Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pendretti who wrote (8113)	8/31/1999 8:44:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78822

Prendretti (re: HDWY, HAIN, SZA): I defer to your expert knowledge of HDWY. My opinion nevertheless is - it's a temp. employee/headhunter firm which specializes in financial employees. The downside, which you say is minimal, might be minimal. But if the economy - the US economy-- is hurt, I think the demand, world-wide demand, for financial people will be affected. There's plenty of risk with HDWY in my opinion. Although it very well may be an excellent value stock at current prices. HAIN, ha! It's hard for me to look at it now at 26 1/2 when I thought about buying it as a value stock in 1995 or 1996 when it was about $2. :>( I don't have access to IBD and its favorable report on HAIN, but as I look at HAIN numbers from Yahoo, I see it selling now at 3x book value, 2x sales, current pe close to 40, June '00 earnings estimated at slightly under $1. ('00 pe would be about 27 or 28x). Doesn't look much like a value stock to me. But again, I defer to your detailed review and opinion or to anyone else on the thread who has really looked at HAIN. (Aside: Pendretti, I mean no attack on you or your selections. So many stocks are mentioned on this thread, that for me-- unless I can immediately see a compelling/intriguing reason to look further-- or unless the stock's value numbers - price/sales, price/book, price/cash flow, enterprise value/revenue, or other numbers fall into something I'm comfortable with-- or somebody else confirms that the stock should be looked at, I just move on to some other possibility. One such possibility in the US food business might be Suiza Foods (SZA) They are a consolidator of milk dairies. They've grown into a substantial force, although, as discussed here about the problems with consolidator companies , they too may face overexpansion, overpaying, miscalculations, and debt (lots of debt) Still, with a price to book of 1.6, a p/sales of .34 a pe of 11, and trading down from its highs-- to me SZA is more interesting as value stock than HAIN.) (note: I have no position in SZA. But I do prefer milk to the taste of some of those HAIN soups -g-) Paul Senior