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

To: E_K_S who wrote (31611)	7/25/2008 6:13:32 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78628

E_K_S: DD. I just took a look at their Q2 report. Nice numbers, especially from agriculture side. The company seems to be cheap on various metrics. One thing that I am not so happy about is their use of cash flow to pay dividends and buy back shares when they still have significant debt on the balance sheet. I prefer overcapitalized companies. :) Although it's not a big deal, buybacks and divi is good too. :) I have a smallish position and I may add if the stock continues to languish. These conglomerates probably won't do very well unless there is a general economy upturn. They are not pure plays in anything and unless there is a strong speculative move, they don't seem to participate. For example, DD did nothing in agri stock runup though it has a pretty significant agri business. On the other hand, it is pretty nice to own a strong well-run company that is a conglomerate. Rewards will come some day. :) On the very long chart both MMM and DD underperformed S&P500. Is now a good time to buy for outperformance? Perhaps. ;)