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

To: Jurgis Bekepuris who wrote (22232)	10/11/2005 5:05:49 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78565

I don't recall LBY, but as I look at it now, stock seems relatively attractive on psr and p/bk. Earnings have fallen off a cliff though of course. That high d/e number is discouraging for somebody who just scans for this without having knowledge of the business requirements. Net profit margins have been slipping in recent years. With this stock, as well as other manufacturing stocks I've been looking at and buying, I have the nagging suspicion that times are just so difficult - Chinese or other competitors, increasing raw material costs, etc. - that it just may not be possible for any of these listed companies to be again making enough profits to support stock prices the way they were before (with those higher psr and p/bk numbers). I often bet on revision-to-mean; that may not happen with these companies. OTOH, the stock - now near $12 - has traded above $25 for many years (including this year), so maybe if the company comes back into favor - the special charges cease - it seems reasonable to me the stock might improve somewhat: even just going to $18... That'd be a 50% gain. Not an impossibility.