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

To: Spekulatius who wrote (14888)	10/9/2002 11:44:07 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78742

Added to a long held position in AEP today @18.41. The last time AEP, the largest electric utility, changed hands at these levels, in late 1984, the Dow was around 1200 and 10 year rates were around 12%, 3x current levels. With 80% payout ratio, I suspect the current 2.40 div will hold...13% based on my add price. Also did a flip-flop on RPM...sold prior to CC [70% gain] on concerns about lower operating cashflow due to a big jump in working capital. Bought back 60% of the position at lower price after the call when the issue was addressed on the call...WC had dropped dramatically last year in a substantial improvement over prior year which was too high, the return to normal level was reflected as a q/q jump that hit cashflow. Didn't reinstate the full position because this is a market that is very generous with 'buying opportunities' in case anyone hadn't noticed.