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


To: Carl Worth who wrote (25542)12/17/2006 12:38:59 AM
From: Paul Senior  Read Replies (1) | Respond to of 78740
 
Carl Worth, if the Motley Fools ever do perchance come up with a 20 bagger they'll be shouting it from the rooftops, and we will never hear the end of it from them. -gg-



To: Carl Worth who wrote (25542)12/17/2006 1:01:28 AM
From: Kenneth Kirk  Read Replies (1) | Respond to of 78740
 
Okay, I've been lurking this thread for a long time, and have picked up some good picks (thanks, guys, by the way), but I'm confused as to why CWTR is a good value play.

Yes, the 36.9 PE would be justified by the projected growth (.44 per share in '06, .70 in '07, .98 in '08). But this is a clothing line. How worthwhile are some analysts' guesses as to what women will find fashionable next year? If sales flatten out, the stock absolutely crashes. That doesn't fit my definition of a value play, where the concept is to get a stock which can't go down much but can go way up.

I'm not opposed to fashion lines; I made great money on Coach this year, but it had a PE which made me comfortable.