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

To: Carl Worth who wrote (19911)	10/20/2004 12:33:52 AM
From: Paul Senior	Respond to of 78702

CL: Pick the low? Ha. I'm already disqualified, since it's dropped below what I expected. Your $40 might be right. I'll just kick out the 10-year low p/e (per S&P) of '94 - that p/e of 13 seems too bear market. Next lowest is 16 in '96. A p/e of 16 on S&P's '04 earnings est. would make the stock around $39. Of course, the p/e and stock could go even lower. Who knows? OTOH, for the majority of the past decade this A+ (S&P rank, based on earnings and div.) company has sold for much higher than a p/e of 16. That's what I'm hoping to see repeated in future. I assume the business model is intact. My intent is to continue to add small if stock continues to drop.