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: Paul Senior who wrote (8966)	11/23/1999 10:00:00 AM
From: Grommit	Read Replies (1) \| Respond to of 78616

Paul, I joined you in NWPX this AM. I also noticed that the price is below book value ($14.47), in fact at the present price of $11.50, it is close to net tangible BV of $10.50. But this is more than an asset play. (1) EPS should be around $2.00 this year. PE of 5.8 (2) Long term PE range is usually between 7.8 and 13 for the company. (3) Analyst's have EPS for 2000 at $2.54 - 27% increase. Probably not. (4) Debt/Equity at .80 I chatted with IR for a bit before buying. (5) Next year outlook not solidified yet. Should be good earnings, but would not call $2.50 level the most likely. But it is possible. I'd be happy to see it within 2 years. If possible in one, that's gravy. (6) Long term outlook very promising with infractructure replacement expectations. And safe drinking water act supposed to force the issue(?). I'm getting literature in the mail. (7) The focus next year is to reduce debt. That was to be the focus this year, but the opportunity to acquire Saginaw (N. Am. Pipe) and others was quite compelling. Notice Saginaw had revenue of $18 million and purchase price of $5 million. (8) They do not understand the stock price. No ugly news pending. quote.yahoo.com