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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (36102)	4/11/2002 5:04:48 PM
From: reaper	Read Replies (1) \| Respond to of 209892

<<hasn't that in fact been the pattern of late: the number of market darling mega-caps taken out back and shot whilst the sound bite averages are mysteriously held aloft....>> it may not be that much of a "mystery". while the TMT complex is still grossly over-valued, I am having surprisingly little difficulty finding reasonably valued smaller cap names (with what some technicians say have good charts). Regis Corp -- cuts hair and trades at < 10x cash flow. Papa John's -- makes pizza and trades at <8x cash flow. Hibbetts -- sells sporting goods and trades at <10x csah flow. International Speedway -- promotes NASCAR races and has a huge, guaranteed TV contract and trades at <10x cash flow. West Corporation -- calls you at home during dinner to sell you long distance service and trades at <12x cash flow. All of these companies are growing their cash flow 10-20% a year. And when I say cash flow I don't mean EBITDA (which has nothing actually to do with "cash flow") but after-tax cash from operations (in the cash flow statement) that is available to equity holders (or to fund growth). These types of companies have been in a brutal bear market since 1998. Hibbetts, for example, is 2x as large as it was in 1998 and the stock price has not yet cleared 1998 levels. They have never had a down earnings year. Please note: I own all of these stocks as HEDGES to a mostly short portfolio; I am not advocating naked long. But that said, in a low interest rate world where we don't get TL & EV, these stocks could go a lot higher. Cheers