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

To: Paul Senior who wrote (30132)	2/21/2008 1:38:59 PM
From: Jurgis Bekepuris	Respond to of 78774

GFF: The issue is that quite a bit of book value is goodwill + intangibles. Without them, net tangible assets are about 300M vs. the company trading at 277M valuation. That's 8% discount only. The company never had great margins even in the heydays of construction. Had good ROE for maybe 2 years. So why should we think that it's now worth more than maybe 1.1 x tangibles? Neither plastics nor doors look like a business with a huge macro trend in the works. Of course, on the positive side it is trading below net tangibles, it just started barely to lose money (did not lose much - yet) and if the market was more positive it may tread above book instead of below tangibles, so sure there should be a lot of value investors buying. As they are. I think I will agree with Paul and pass though. :)