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

To: Sergio H who wrote (15958)	12/26/2002 8:06:03 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78525

I'm sorry to see FLOW here at such a low price. To me, it's always been the leader in water-cutting technology, an important niche business. It looks like there's a change in management which might be for the better. And maybe with some judicious business decisions(and a little luck) the stock could go for 10 or more again - where it's often traded (up from roughtly 2.5 now). Stock's usually traded at 2x-2.5x book value, and book value's about 4.5 now - assuming no further writeoffs. So even at 1x book value it is a good gain from here (2.5 to 4.5) If management could just make a profit again and maybe get its typical return on sales. You asked for opinions/interest. My opinion is that management might very well be able to turn this company around, and if so, the stock will rise. It seems to me the company's position in this niche segment will help them. OTOH, as regards interest, for me, I have no interest in the company at current price. With outstanding debt greater than equity, and no evidence of an improving business, it's just not a compelling buy for me. That could just be me though-- I'm in a lot of stocks -- too many-- that are turnaround candidates. I just can't see the value enough to step into yet another one here. Paul Senior jmo, and I've been wrong many, many times.