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

To: Grommit who wrote (17657)	9/3/2003 9:27:03 AM
From: cpabobp	Respond to of 78814

RE: STE I think this might be a good company, but the timing might be a little off. I'm always worried with A/R and inventories rise when the quarterly sales drop sequentially. It seems that some of the other competitors that I looked at are all within 10% or so of their 52 week highs. I like the company, but I'd personally go for a lower target buy price, say 22.00-22.50.

To: Grommit who wrote (17657)	9/3/2003 2:39:06 PM
From: Paul Senior	Respond to of 78814

STE could be okay around current level. (Who knows?) This is it for me, your statement: "Relative PE are dangerous". Roughly, p/e is 15x on next year's expected earnings. P/e has mostly, most years averaged above 20. Ergo, relative (p/e) bargain. Question is, do I want to pay 15x for the growth? Also again, for me, it's another laggard stock in this market. Just lagging or is there substantial, unknown reason why? (rhetorical question) Scary to me being in a market situation where relative performance (lagging) is a key consideration in looking at/for "value". I'm seeing several of these situations. Paul Senior