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

To: Paul Senior who wrote (16539)	3/5/2003 6:03:30 PM
From: Marc Fortier	Read Replies (1) \| Respond to of 78666

Very high level of debt Paul. BTW, Motley Fool had as story about IBA today. Although Bachoco is a Mexican company (which is not a positive, I agree, because of their weak currency), the fundamentals could not be better, nor the ratios lower. Definitely a great value pick. Certainly deserving a small position on any diversified portfolio.

To: Paul Senior who wrote (16539)	6/30/2005 1:02:26 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78666

Auto retailers. The stocks continue to drop. The drop has been sharper after GM announced it will sell cars at the employee price, and Chrysler is considering the same tactic. Apparently this hurts the retailers two ways: first, the price is apparently fixed - no haggling, so that perhaps reduces the ability of the salespeople to negotiate higher profits among the otherwise not-so-savy car shoppers. Secondly, that low employee price also drops the price of used cars, so there's apparently less profit potential from used cars on the dealers' lots. (Used car sales are a significant contributor to dealer profits.) Over time I've sold down my positions in the sector, and now I only hold stub positions. At this point I'm willing to begin building up GPI, which is at a 12-month low now. Merrill Lynch has downgraded the sector, and estimates that GPI will earn $3.20/sh. next year. Imo, that's not too bad given that the stock is under $25/sh., trading close to stated book value, and with a price/sales figure of .11. Debt/eq. is high per Yahoo number of 1.9/1, and that stated book value number includes the acquisitions GPI makes as it expands geographically and by franchise. finance.yahoo.com