Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Slagle who wrote (62048)	4/16/2005 2:31:25 AM
From: energyplay	Read Replies (2) \| Respond to of 74559

I don't know enough about the carpet business. I believe there are some new office buildings and hotels being built in a number of US cities, mostly as the population moves around. That will be X number of square feet - much less than new homes, but something. Mohawk doesn't look that heavily leveraged, appears to have good cash flow, etc. Forward P/E is 11, which is not overvalued, unless the market really tanks. *********** There are a lot of stocks with P/Es of 30 or more that can fall further and faster. MHK maybe a short, but unlikley to be a really good short. Good shorts need as many of the following - 1) Broken Charts, gaps down (EBAY, IBM) 2) Really high P/e, P/sales, and other metrics- the priced for perfection stocks- (EBAY,QCOM,DELL, YHOO, AMZN, MSFT) 3) Flaky business models, poor products, lawsuits. (EBAY, KMX, MSFT) 4) Criminal management (AIG), previously Enron, Providian, WorldCom 5) Really stupid management Hewlett-Packard, Enron,Tyco 6) "Bad Luck" - see 4 & 5 to increase odds.