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: hoyasaxa who wrote (32049)	9/17/2008 10:49:12 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78476

For me, I'm always wanting to be in, so it's never a question for me of being out or mostly out, then going "all in" --- especially not going all-in on one stock. Right now in my current buys, I'm emphasizing the lp, BWP: Large distribution (yield); distribution could increase in future years; has contracts from customers for gas transmission for its to-be-completed construction projects; Tisch family possibly could help BWP funding, if required; chance for capital gain if stock recovers. So many bargains abound, it's not so much a matter of which to buy, but rather, just to buy.

To: hoyasaxa who wrote (32049)	9/18/2008 2:04:26 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78476

Starting for a decent position in asset manager, BEN. Barron's 9/10 article not too positive: "Relative returns are likely to remain weak across Templeton's largest equity funds given adverse forex trends and ongoing global equity-market volatility. As flows tend to follow performance, we expect aggregate net flows to remain decidedly negative in the near term...Our reduced earnings outlook reflects lower August AUM; more conservative net flow assumptions; less favorable revenue yields; and tighter margins. As a result of our weaker earnings projections, we are taking down our price target from $120 to $103." Sandler O'Neill & Partners Zacks says "hold": predicts small earnings drops: $7.03 ('07) to $6.95 to $6.74 ('09). Imo, from my recollection/experience, publicly-traded asset managers take a hit when stock markets decline, and come back when the markets improve. I'm intending to buy now and wait for the better times. I've landed on BEN; others might be better - I've not looked - BEN seems okay to me: It has the size/diversity/reputation. Fabulous profit margins and relatively (to itself) low p/sales. Okay roe (20% 5-yr avg). Book value increasing every year. P/bk = 2.9 has been higher and lower in past years. D/e almost 0. Stock price --- oops, has moved up as I've written -- around $90. 20 bucks/sh in cash. Small dividend, sometimes increased. Relatively low p/e now (12). It's a buy! (Bwdik. Jmo, and I've been wrong many,many times.) finance.yahoo.com