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

To: quartarpint who wrote (9079)	12/1/1999 11:42:00 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78666

Clive G.: Looking at WAK, it may very well be a value stock. Analysis is a little complicated - for me anyway. With three associated stocks: WHC, WAK, WAKB. Lot of offsetting factors. WAKB trades less, but looks like it might be more of a value than WAK. Wakenhut family controls. They cut out the dividend? I haven't checked yet to see how much WHC is in WAK. (Buy WAK, get WHC for free?) Business grows. But contracts can be iffy - Not much barrier to entry (I'd guess) during renewals. On the other hand, with labor market (e.g. guards/temps) tight, profitability for WAK might be affected. (Did they give up Travis County TX business for this reason?). ROE looks relatively (to other businesses) poor. Stock though is trading at book value and at maybe a 3 year low. Revenues are growing, but it's a business that rev's may be determined at contract time, but costs maybe not so fixed over life of contract. (I can't tell.) Co. has no debt; cash about $3 per share ($45M) if I read the latest SEC correctly. On balance, right now, after a few minutes looking at it, based on a business future I can't scope, but on historicals that look pretty fair, I'd say WAKB @$10 is a value. Paul Senior