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

To: MCsweet who wrote (23450)	2/27/2006 2:48:21 PM
From: Grantcw	Respond to of 78816

McSweet, Thanks for the reply. I'm uncertain as to what I'm going to do in the near-future, so I appreciate your response. The question to me is this: STRZ in general operates close to break-even on a GAAP earnings basis. As a CPA, I know that this doesn't tell the whole story, but it's certainly part of the story. Now, though they're close to break-even from a GAAP standpoint, they have strong cash flows. The question to me is, in their generation of cash flows in the last couple of years are they sacrificing anything long-term? For example, are they spending as much capital expenditures as they should to keep things going strong long-term? I'm inclined to believe in management and say yes, as management hasn't proven me wrong yet. And at the current dividend rate, given that I got into this stock at around $6/share, it won't take many years at this rate for the dividends to equal my purchase price. So, I'm content in holding for now, but if the stock price continues higher, my risk/reward ratio will get to the point that I will probably take my profits and run. Thanks again, cw