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

To: Paul Senior who wrote (29213)	12/11/2007 2:13:54 PM
From: E_K_S	Read Replies (2) \| Respond to of 79369

Started a position in WAG (WALGREEN CO ). Company selling near its 52 week low and the P/S is quite low. The forward PE at 15 is a fair price but only yields 1% at its current dividend payment. This is a reversion to its mean play as the company has sold off from its 200 day MA at $42.69 and is below its 50 day MA of $38.56. In April 2007 the stock was booming trading near $48 and same store sales were at 9%. Goldman Sachs analyst John Heinbockel reiterated a "buy" recommendation on the shares with a $55 one-year price target. Now as the stock trades in the $37.70 price range, seems like a a good value. EKS

To: Paul Senior who wrote (29213)	3/28/2008 11:40:41 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 79369

Chinese pharma stocks are actually pretty interesting from growth perspective. CHME just reported earnings which jumped up also pushing its book value. The stock also responded nicely. At this time I hold some AOB, CHME and LTUS. I think all of them are cheap. AOB has the best margins and the biggest size. CHME is arguably cheapest although LTUS has not reported 2007 earnings yet. The issues going forward are mostly the same that I mentioned before: reliance on unproven "Chinese medicine" compounds, stricter regulation, more competition, more distribution business with lower margins, share dilution - all of these companies issue shares or convertibles for growth, shady sales to related parties. LTUS had some financial report restatement for last years, although it was possibly immaterial and more of a mistake than a fraud. The positives is growing Chinese pharma market, improving health care situation across China, and management incentives to grow the companies. IMHO, the shares are cheap with huge Chinese selloff and may offer a good entry point for value investors.