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

To: jhg_in_kc who wrote (2868)	6/7/2001 1:05:51 AM
From: Moominoid	Respond to of 4691

Let me know what they're like :) !

To: jhg_in_kc who wrote (2868)	6/7/2001 4:10:02 PM
From: TwoBear	Read Replies (2) \| Respond to of 4691

Let me preface my comments by first stating that I don't own the stock. KKD's melt in your mouth like honey dew vine water as JB would say. I seriously think that they have some addictive additive in the ingredients. My wife has forced me to drive 12 miles to the closest KKD at 10 p.m. to satisfy her craving. KKD is the holy grail for vendors when trying to get a foot in the door here in the South. Also, KKD has a program that is very popular with fundraisers where KKD cuts them a deal on the donuts. It is safe to say that KKD has legendary status in the South. Scott

To: jhg_in_kc who wrote (2868)	6/7/2001 7:19:10 PM
From: Moominoid	Respond to of 4691

MAGI is being taken over by JNY which I believe that Buffett still has an interest in. Even after almots doubling in price after the takeover it is still on a P/E of 7-9 (trailing/forwad): biz.yahoo.com biz.yahoo.com Pretty incredible. David

To: jhg_in_kc who wrote (2868)	6/7/2001 7:35:34 PM
From: Moominoid	Read Replies (1) \| Respond to of 4691

Stock Focus: Growth At A Fair Price Thanks to the 13% drop in the Standard & Poor's 500 from a year ago, investors shopping for value need not hunt for obscure widget makers or take a chance on a badly deflated Internet stock. While many stocks sell for less than the S&P 500's estimated 2001 price-to-earnings ratio of 25, only a handful look cheap based on their growth potential. The price-to-earnings-growth ratio (PEG) assesses a company's stock value relative to its estimated long-term earnings growth. It is calculated by taking the forward P/E (current price divided by the earnings-per-share forecast for the 2001 fiscal year) and dividing it by the stock's long-term annualized earnings growth forecast. As a rule of thumb, a company is fairly valued when the PEG is 1, which is when the forward P/E equals estimated earnings growth. A stock is possibly undervalued when the PEG falls below 1. Jones Apparel Group has a PEG of just 0.9 even though the company has posted a 33% average annual gain in per-share profits over the past five years. "The market continues to favor retail stores," says Margaret B. Whitfield, apparel analyst at Tucker Anthony Sutro Capital Markets. "But women's apparel in the department store channel has been the best performer year-to-date, and Jones has been the leader with its Jones New York brand and licensed Lauren line." Whitfield expects profits at Jones to increase 20% this year and 20% per year over the next three to five years. Nevertheless, the stock sells for only 15 times estimated 2001 profits. The companies in our table all have PEG ratios less than 1.0, market values of at least $1 billion and annual sales of more than $600 million. To be on the cautious side we tweaked the PEG calculation. Instead of using the consensus estimate for 2001 earnings, we used the forecast from the most pessimistic analyst. Similarly, we used the median long-term growth estimate from all the analysts tracking each stock. The median, or middle number, can lessen the impact of estimates at either tail.