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

To: schzammm who wrote (19892)	10/17/2004 4:32:12 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78662

GKIS. D/e (per Yahoo) = 1.4. Too high for me. (jmo) Gross margins and operating margins about twice competitors PPC and TSN. I assume the business is way too tough and too competitive for that large difference to be a sustainable. (I could be wrong.) ------ I'll just take a chance and jump right in to presume I might guess what the board's ideal criteria might be: A stock that: sells below net current assets has many years of earnings pays a dividend that's not been cut in 10 years has good liquidity But who knows? We've found that it's difficult to get more than three people to agree on a stock. Even then, time frames for holding a stock are different. Everybody seems to come to a valuation opportunity differently.

To: schzammm who wrote (19892)	11/17/2004 2:00:17 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78662

Re-looking at egg/chicken producers now. Well... maybe I was wrong on my assessment of GKIS. Stock's performed decently (imo) since you mentioned it here, schzammm. I see a couple of stocks in the sector are up sharply today. (Not CGLa though, which was also mentioned here last month.) I don't see the d/e ratio as high now on Yahoo GKIS stats as I said it was. Still high, but not a killer reason for avoiding the stock, imo. If the the sector is going to do well because the egg/chicken business is going along okay (for now anyway; it's cyclical we know), then GKIS might be worth a buy still. I don't like switching buy opinions from negative to positive after a stock's moved up, because I'm not one who believes a price rise itself means that the market consensus is now positive or aligned or safer, or that the market is right. So I hope I'm not letting today's action in the sector influence me too much. finance.yahoo.com