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

To: Grommit who wrote (10662)	5/30/2000 11:36:00 AM
From: Paul Senior	Respond to of 78958

Adding to CFWY this am. A trucking company and "a supply chain management services provider". Pretty good size business - 22,000 employees. Stock is about 4.25 now (hitting new lows today). There's $4.38 cash backing each share (per Yahoo), long term debt is relatively small (d/e = 0.1). Tangible book value is about $12/sh. Price/ebitd is about 2.2. Company isn't profitable now, but analysts expect it will be by year end. (4 of 4 analysts rate CFWY a hold). I figure I'm buying this thing for about cash in the till. Paul S.

To: Grommit who wrote (10662)	6/1/2000 12:09:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78958

Yet another way to look at SNH: To review, this is a REIT with several high quality tenants and a bunch that are bankrupt. The dividend was cut from $2.40 to $1.20, the $1.20 being the cash flow supported by the high quality tenants. They still own the properties for the rest, and they are being restructured. Within a couple quarters, the dividend is going to go up to $1.60-1.80 in my estimation. The stock has been trading around 9. What if we look at it this way. What if all there was was the Marriott and Brooksdale leases? $1.20 of high quality dividend income. I'd buy that for a 10% yield. So that's $12 of value, with the half of the company in flux for free - actually better than free since the stock is trading well below that $12. Patience. I'm still buying little by little, as I have been since December. A lot has happened since December, and I have more conviction though the price is lower. They don't get much better than that for patient value investors. And damn is it easy to be patient while you're collecting a dividend like this. My average cost is down to about 9 3/4. If you're looking for an entry point, I'd say 9 is where you buy.