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

To: gcrispin who wrote (23971)	5/26/2006 10:26:11 AM
From: Spekulatius	Respond to of 78714

PVD , i checked PVD's annual reports going back a few years. I do not find much evidence of high commissions. PVD charges a fee of 2.25% for contributions to its pension funds. This is less than what many financial advisers of load fund companies charge and it includes the life insurance premiums (the cost of those runs at about 1% i think). I believe PVD lowered it's fee from 2.6% to the current 2.25% in the late 90's or Y2000. PVD's earnings have been stagnant for about 4 years and only recently they have started to increase again. Chile's private pension system is generally considered a success.Of course all this does not prevent a new government to change the rules in the regulated business to the detriment of companies like PVD. However, i believe this is already reflected in the recent decline from almost 30$ to 25.X since Bachelet go elected. So far, I am not aware of any substantial changes and based on the current fundamentals, I think we are looking at a stock with a PE of 8-9 and a dividend yield north of 8%.