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 : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (49878)	11/25/2003 8:52:34 AM
From: DanZ	Read Replies (1) \| Respond to of 53068

I have moved on to a degree as the size of my position is down 50% to 70% from two weeks ago. I am not going to buy it all back until I have more confidence that a bottom is in. If I never get that confidence, then I will likely move on entirely. At 10 times earnings and a PEG of 0.9, TOY has priced in a fourth quarter miss. If the miss doesn't come to fruition, the stock has a lot of upside. That's one reason that I am holding it. Another reason is that I just don't see how TOY can trade at such a low valuation for any sustained period during a bull market. Like I've said before, the company is not without problems, but it doesn't deserve to trade at a 75% discount to its peers. If the bull market continues, TOY has upside even if they miss the fourth quarter, obviously depending on by how much. The mean estimate for this year is down to 95 cents per share, below the company's new guidance put out last week. Either the company has overestimated its performance or analysts are being overly cautious, which sets the stock up for a positive surprise if the company delivers. Also in the back of my mind is that a few of the top mutual funds holding the stock might pressure the Board to let Mr. Eyler go, which would almost certainly give the stock a big boost.