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


To: Tapcon who wrote (24329)7/15/2006 5:02:01 PM
From: Paul Senior  Read Replies (2) | Respond to of 78470
 
Paul K. Blakely: I see FSS as a sardine too.

The stock does cycle. And it's at a low now. And historically at a low p/sales ratio too. OTOH, profit margins, if they even exist now, have come down over the past decade. Business seems to continually disappoint. (They cut the dividend at least once.) I just wonder how many times a person can buy this stock down here at 13-15 and reasonably expect somebody else to come along later with hope enough in FSS to take the stock off their hands at 18-20 range?
OTOH, FSS is selling one of its businesses, so there is some positive indications that maybe the company is actually (at last?) taking steps to improve itself.

I'll watch the stock for a while. In this market where so many stocks of companies with strong businesses seem so weak, I'm wanting to put my emphasis on these rather than on a weak company whose stock is down in a weak stock market. OTOH, for a small amount, FSS might be worth a small sardine gamble again as a bet the stock cycles up again one more time.

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