Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Don Earl who wrote (14739)	7/3/2002 1:42:10 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78701

Don Earl: I don't believe the predictions or explanations of SWY management either. Not sure I even trust these guys. From what I can see - in my little tiny corner of the world - we're about saturated with grocery stores. And the days of 10-15% growth are gone in today's Costco/Wal-Mart/ABS/KR tough competitive environment. Imo, they will all be trying to take market share from each other - and that's not a good thing for investors. I'll bet that the $2.80 (approx.) earnings estimate holds though. That's a drop, but it could be doable. And a p/e of 10 might be sustainable. If there is an earnings improvement over than next year, or if people become willing to pay more for a "presumed" "stable" business, the p/e could rise. On the other hand, it could drop - everywhere where companies have earnings, p/e's seem to be going lower - and SWY might warn again on earnings. So the stock might very well be a short from here. I'm holding my small position and trying to look to the next 12 months.