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

To: Paul Senior who wrote (16626)	3/14/2003 7:54:32 PM
From: - with a K	Read Replies (1) \| Respond to of 78627

If I HAD TO CHOOSE one, it would be B. I do not like debt in this environment. Especially a d/e of 2.3 to 1!!! - Kris

To: Paul Senior who wrote (16626)	3/14/2003 7:55:20 PM
From: Grommit	Read Replies (1) \| Respond to of 78627

car quiz - need more data -- what's the outlook for sales growth / profit growth / EPS growth? what's the cash flow? what's the pension liability? and why would I want to own a car company?

To: Paul Senior who wrote (16626)	3/14/2003 9:22:49 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78627

Paul - A= DCX ? Well then numbers in yahoo.finance match. B must be a Japanese company I assume, maybe Honda (the numbers don't quite match but you may have another source... When comparing the D/E ratio, you must take into account that car companies are also in the (car) lending and leasing business. At least with respect to DCX, it is the reason why the debt is relatively high. P.S: i do like DCX (own the stock) but think that HMC and TM could be good values as well.

To: Paul Senior who wrote (16626)	3/15/2003 11:49:27 AM
From: Grommit	Respond to of 78627

Nice quiz. So I have B (RACN), you have A (DCX) Given the following info. for companies A and B: DCX RCN: P/bk: .77 vs. 1.45 p/s: .18 vs. 1.1 ROE: 12.3 vs. 17.8 d/e: 2.3 vs. 0.16 operating margin (5 yr ave) 3% 12% inventory turnover 7x 5x revenue per employee $450K $530K sales growth 5 yr actual 5% 29% EPS growth 5 year actual (7%) 29% EPS growth next 5 year estimated 5% 15% Stock Price 27.5 14.5 EPS last year actual 3.24 1.47 EPS this year estimate 3.57 1.74 EPS next year estimate 4.12 1.96 P/E this year 7.7 8.3 P/E next year 6.7 7.4 sales last yr $150,000 million , $250 million may we both prosper, let's check a year from now. grommit