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

To: epicure who wrote (23894)	5/5/2006 11:09:36 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78625

Eleutheria, I pretty much gave up trying to think whether any company can turn around couple years ago. :) Especially in retail. My strategy now is to buy high ROE companies that stumble (and PIR has definitely stumbled) for really cheap. Assumption is that they had smart management to earn high ROE and that management can find a way out. If they don't find a way out in 5 years, I sell. PIR is one of the "weak" holdings for me. Compared to other Buffettology companies I buy, it has less appeal, less moat and possibly less chance of turnaround. Because of that I also have strict upside limit at which I sell. I bought it for ~$9.30 last time, sold at ~$12 and rebought now at $9.22. If you still want to know the most likely future for PIR, I think that it will be sold. How much of benefit this will be to shareholders, we'll have to see. My strategy does not work every time. I still hold NTZ (BTW, in an area related to PIR). :( The time is pretty much running out for it and so far I am around break even.