To: James Clarke who wrote (8896 ) 11/5/1999 12:51:00 PM From: Paul Senior Read Replies (1) | Respond to
GPC vs. GRR and stock selection. Jim, I think they might be comparables. But for me, not because of their business model similarities. Rather for how they both trade relative to their dividend yield. I bought GRR last year for its relatively high dividend yield and planned to sell when the yield dropped. (-g-I've got another model that I use for long-established multi-billion dollar companies where I can put some visual boundaries around the relationship of price to dividend to the overall market yield.) Anyway, my model and interpretation would show that a buy point for GPC would be about when the dividend is around 2%. That'd mean a buy anywhere under $50/sh assuming the current $1.04 dividend. I'd be in a losing situation now if I had followed that model -g-. I have trouble even conceptualizing GPC @$50, let alone a buy point there.
