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

To: sjemmeri who wrote (18338)	12/31/2003 6:31:13 PM
From: MCsweet	Respond to of 78497

New Recommendations I'm recommending JLMC as a safe pick. The only thing that worries me about JLMC is that I don't really understand why it is so cheap (not trying to be facetious here). It has a consistent history of earnings, a PE of 9, and is trading just above book value. I'm glad someone recommended KDUS. I was actually considering it as a relatively safe pick (with the huge cash reserve and all) even though it could double if Icahn makes a savvy investment with the cash. Some Value Board Recommendations from this year 1. VNWI up about 75% since I mentioned on Value Board, up over 100% since mentioned on Low Price/Cash Ratio Board. Message 19088075 Message 18663168 2. SPDE, VYYO, KDUS. SPDE and KDUS up marginally. VYYO a lucky double from my first Value board post and a lucky triple from my first Price/Cash board post, although I sold a bit early. Message 19097378 Message 18851342 I also had some recommendations on the Low Price/Cash Ratio board (ALPH, IJX, PARL, etc) that did pretty well too, although a monkey running a price/cash stock screen would have made a killing in this market. I need to remind myself to be careful not to confuse brains with a bull market ...

To: sjemmeri who wrote (18338)	1/1/2004 5:15:57 PM
From: - with a K	Read Replies (5) \| Respond to of 78497

Although I wouldn't put 25% in any stock, my safe pick is WRLD, a far from glamorous stock in a business that you probably don't want to brag about at your next cocktail party. Just my kind of stock ;>) Tomorrow I will post my swing-for-the-fences stock, as it is thinly traded and I want to take a position first. WRLD recently written up here: Message 19618565 Here's my current Graham FV calculation, using FY05 consensus from two analysts of $1.69, up recently from $1.65. I also ratcheted back the estimated growth rate to 14% just to be slightly conservative: Company: WRLD Date: 1/1/04 Next year's expected earnings: $1.69 Estimated EPS growth rate: 14 P/E maximum for estimate: 14 Graham Fair Value: $49.97 Current Price: $19.89 $ difference: $30.08 Percent Growth to Fair Value: 151.23% Other things I like about WRLD: - nice chart. TA support is strong: quotes.barchart.com - mentioned by Dabum in Yahoo RIG board: finance.messages.yahoo.com - Valuation from ValuPro: valuepro.net - Yahoo shows two analysts following WRLD. Nice. finance.yahoo.com - New sources of revenue: WRLD opened or acquired 33 new offices in FY03 and closed four nonperforming offices. The company plans to open or acquire at least 25 new offices in each of the next two fiscal years. - Quicken gives an intrinsic value of $$33 vs. current price of $20, using 15% consensus growth: finance.messages.yahoo.com - and shows top ranking in NI, CF, ROE, ROA, ROIC, debt, PE, PS, and PEG: quicken.com