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

To: Keith J who wrote (20123)	11/24/2004 11:11:38 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78536

CD: I'd say it's a buy around current price based on figures I sometimes use. Psr is decent compared to past years. Paying about twice book - seems high, but p/bk's been much higher in past years. Profit margins up past few years - but they do fluctuate when looking back further. For what you pay to get the stock, profit margin avg. (past few years) of 8% (roughly) is decent. As you likely know, an important issue for the stock buyer is the relationship among analysts and Silverman. That is, Mr. Silverman's penchant for acquisitions is very much frowned upon by 'the market'. Also - if I remember right - and I could be wrong here - there is some question about Mr. Silverman's past business dealings or trouble with gov't (???) For me, there's a high shame factor. This stock was mentioned here several times by several posters when it appeared the company was in some trouble (overextended apparently). And there was some indication then that value fund managers were buying. Stock was selling at half its price now. For no reason that I remember, I failed to act. Kind of poo-pood the stock. Very wrong. Oh the shame. -g- Anyway, I've been reluctant to look back at CD. This stock fluctuates quite a bit it seems. Maybe that has something to do with the fact the company is a conglomerate tied to housing and travel - areas where investors' perceptions can change quickly. Over the past few years, a person could pick up the stock several times in the $15 range. That may occur again. I'll consider the stock. It'd be a small position, and I'd want to ease in, on the assumption I might be able to add at those lower prices once again. (Another person might differ and say the stock's been in a narrow band - almost always over $20 all year, and with good earnings forecast, might have a breakout up move.) Keith Jamison, (and/or others here) - what're your opinions on this one?