Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bridge Player who wrote (26625)	4/22/2007 12:14:19 PM
From: anializer	Read Replies (1) \| Respond to of 78998

It is quite astonishing when you think about it. Using the formula from that article yields a number less than 12 which is well under the 22 maximum as follows. Assume $4 billion US earnings in 2007 and 320 million ADR's we get a forward PE of 8.16. They are steadily cancelling shares but I'll assume a static # to allow for awards and incentives etc. Looking at shareholder equity now of 23,374,000,000 US, it yields a $73 per ADR Book value. Multiplying Price to book (1.397) by the forward PE of 8.16 yields 11.40, way under the 22 threshold. No wonder Buffet likes it after a 4 fold run. With all of Asia as its main playground for growth, its likely a fantastic investment at these seemingly lofty share prices. Steel has been in the top of industry rankings for quite a while now, and has one of the best power ratings of all major sectors based on Lowry's database statistics. To top it off, its foreign.