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

To: - with a K who wrote (16405)	2/11/2003 2:18:44 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78507

I'm looking at CE more as a growth stock. I posted on it on the Buffetology thread. Given the still high (imo) p/e, what I like about CE is: continuing high profit margins (so far) very good debt/eq ratio on-going stock buybacks and acquisitions apparently expanding the business around core competency dominant in its sector possible shift from insider selling at higher prices to small insider buying around current prices What I don't like is: possible new entrants into CE's market high price/sales high price/book continuing drop in ROE What concerns me is my enthusiasm - but assumption - that the company acts as a toll gate for people who use ATM and debit cards. And that this is a sustainable competitive advantage. As in Buffett advertising agency stocks of the 1960's that were profitable because they gave a haircut to companies that used their services (i.e. took 15% of a client's advertising budget)---- I hope I'm looking at some similar model here and a somewhat similar profit opportunity for stock buyers, even though the CE p/e is high (compared to those advert. stocks). I'm adding a little more to my small CE position today also. If we now have three of us who've bought CE this year and posted on it, I'll add CE to the thread's '03 list of stocks. CE discussed here in Smart Money article (p. 4): concordefs.com