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

To: Jurgis Bekepuris who wrote (22804)	12/20/2005 5:22:10 PM
From: Suma	Read Replies (1) \| Respond to of 78732

Well LBY has a decent Yield... When I picked up F... I didn't realize that I would receive a diviend and lo and behold in my Stockdale Statement... a nice dividend. When the stock goes down I don't feel the pain so much. (:)

To: Jurgis Bekepuris who wrote (22804)	12/21/2005 10:09:11 AM
From: Paul Senior	Respond to of 78732

Jugis Bekepuris: On an individual basis, those three you've got look lousy to me. As a package, very possible it'll work okay - possibly there's a revision-to-mean with one that'll deliver an overall cap. gain for the threesome. I'd also agree that LBY's got a lot of debt for what you get - not a great profitable business. But for what it is, in past they seem to have okay profit margins and high roe (All that debt enables some good ROE.). Not much sales growth and plenty of competition, it seem to me; so I would expect a low p/e nonetheless. Again, as I say, I've been wrong on DSWL forever. I just do not see how, or understand why, a company that I see as basically an injection molding shop and a printed circuit board manufacturer (assembler) can have and sustain such high profit margins. Totally different from my limited experience when I worked with and in these types of companies in the USA. I never saw a moat to these businesses. OTOH, perhaps I've not studied DSWL as I should - I've never tested my biases - perhaps DSWL is not what I perceive it to be, and there's something different about its businesses. Back on the other hand though, when you fudge the books (somebody apparently got caught there recently), you can show good profit margins! ------------ I'm closing my position in my recently purchased RadioShack (RSH). (I'll take a small short-term loss for tax purposes.) I see it as another in this same junkyard. Another well-known company whose stock is beat down. Just as it's hard for me to see DSWL or LBY recovering (aside: I don't see so well though), I now wonder if RSH can recover. Plenty of stores, no compelling products (that I'm aware of). I ask myself, if RSH went bankrupt, would anybody even miss them? Historically on several measures, the stock is cheap. I've lost confidence here though.