Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: mikeslemmer who wrote (17011)	5/8/2003 11:10:57 AM
From: jeffbas	Respond to of 78625

Mike, you presented Steinway in an interesting fashion, permitting me to think what a good price to buy would be as I read along, before seeing the actual price (since I do not follow the company). My conclusion is its a buy under $10, and reasonably valued at near $14. In my opinion, the presence of so much debt dilutes the apparent cheapness of the stock - think of how much equity they would have to issue to fix the debt problem, at what price it could be sold, and what that would do to the valuation. I also do not see any catalyst for improvement in the price near term. As an old company, it might also have some defined benefit pension plan funding issues?

To: mikeslemmer who wrote (17011)	5/8/2003 5:47:01 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78625

regarding Steinway: Imo, it might be a buy here at current price based on some numbers I'm looking at: relative p/sales, p/book value, growth in book value, and past (avg.) ROE. Stock is approaching multi-year lows and one wonders (well, I wonder) if the current downtrend might continue because investors believe the current business prospects will not be so good going forward. This confuses me somewhat based on my background. My parents believed a home is not a home unless it has a piano in it, and my wife and her parents believe similar. (Too bad I'm tone deaf with no musical skills.) If we're seeing a boom in household formations, and my anecdotal experience is common, then maybe Steinway needs only to get its share of business for it to prosper. OTOH, there's stiff competition from China in the low end for Steinway's orchestra instruments, and schools seem (?) to be cutting back on their music classes. With high end pianos, I notice that Japan's Kawai has been very, very active in sponsoring concerts in my area. Yamaha too I believe has long been an aggressive, innovative and well-financed competitor. (I'm no expert on piano companies or pianos though, high-end or not.) Still, there's that Steinway charisma that the name engenders. And I wouldn't be betting against you, mikeslemmer, as your picks seem to be doing very well now. Plus, with a stock symbol like LVB, how could somebody not be a little attracted to Steinway? (-g-) In my way of looking at it, there are still a goodly number of value propositions out there. LVB's okay maybe, but not a screaming buy, and not better than some other value ideas that have been suggested here. I could see LVB though as a small bet within a diversified portfolio. For now I'll add it to my watch list. PS = Paul Senior LVB = Ludwig van Beethoven