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

To: Spekulatius who wrote (24143)	6/18/2006 10:49:53 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78740

DOW--- USA's largest chemical company. I'm not looking so closely at the p/e. These chemical companies can sometimes sell at low p/e's. S&P though says DOW is undervalued now compared to competitors based on its (DOW's) low p/e. And the p/e currently is at the low end of DOW's historic range --- a good sign. (Although the p/e was not applicable in 2001-2002 when there were losses and not earnings). I'm also a bit concerned about how dividends might hold up for these companies if we go into a recession or have more large increases in feedstock prices. However, I note that DOW's dividend has not been reduced in at least the past ten years. I don't know what the payout ratio is: it was a very low 29% when the dividend was $1.34/sh. last year. (Div. is now $1.50/sh). The psr catches my interest. It hasn't been this low in over ten years. (current number compared annual average number). I consider this a very good reason to be interested in the stock now. (Jmo) If the stock drops another point (to a new 12-mo. low), I'll add a few more shares. I have a few shares in several other chemical companies, e.g. LYO, SHI, but imo (fwiw, not much) DOW is the best bet now.

To: Spekulatius who wrote (24143)	6/24/2006 1:40:06 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78740

Bought a starter in NPSN a Dale Baker pick (SA media company) and EMC. I was surprised how low EMC has fallen. It seems that everyone has given up on large cap tech nowadays. PE around 18 with 15% growth sounds OK for a business like EMC, unless growth rates fall dramatically. AMAT is another tech company that has a great business right now but the stock nevertheless is near a multiyear low (no position in AMAT yet).