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

To: Paul Senior who wrote (19109)	4/18/2004 5:21:07 PM
From: Wallace Rivers	Read Replies (1) \| Respond to of 78731

It's a classic falling knife, sometimes we know what happens with those. Pros: A very high quality blue chip, market share (still) leader, in a growing industry. Excellent balance sheet (over 2:1 current ratio, a very small amount of debt on the books). About $3/share cash on the books. Introducing multiple new models by years end to plug holes in the product portfolio. By virtually any technical measure, the stock is deeply oversold. Cons: Missed the boat on the clamshell craze, and needs to ramp up new models to fill in the gaps on this miss - can they do this in a timely fashion? This will most likely result in at least two more quarters of declining sales and EPS, and contracting margins. Can't think of too many other cons (the aforementioned are certainly daunting on their own) except for the standard external shock possibility which would curtail consumer spending.