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

To: Paul Senior who wrote (21710)	7/19/2005 5:01:15 PM
From: bruwin	Respond to of 78625

I’d agree with you about SLE’s Operating Margin, Dividend (a healthy 2:1 Dividend Cover) and its Long Term Debt. The banks appear to own more of SLE than the shareholders. However, based on the ratio between Net Interest Expense and EBIDTA, SLE seems to be using that debt fairly effectively, but only just ! Its P/E of 13 does appear reasonable, but that could be because of a falling price, coupled with a falling EPS. SLE’s net profit and EPS have been falling steadily over the last 15 months, even though its Revenue alternates by going up and down every 3 months. More of a negative, in my opinion, is the below par return on its Capital Employed. They also seem to have fairly large Intangible Assets. Maybe that’s due to trademarks, licences etc ... It'll be interesting to see how "the Market" reacts to SLE in the coming months.