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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (48753)	11/9/2001 1:42:46 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 54805

Malcolm, Yes, 22% is rather high, but don't forget that the ROE can be much higher coming out of downturn. E.g. 1996-7, ROE was 30-36%. So overall, it could be possible to have average 2X% ROE. It's up to you to decide how probable it is. For example, at 15% projected ROE, the return falls to 3.5%, which is a sell. BTW, most other G&Ks are even more overpriced. EMC was in a "hold" area, as far as I remember. Anyone interested in numbers on that? Jurgis - Abercrombie & Fitch, on the other hand... :-P