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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (121416)	6/5/2009 12:18:32 PM
From: Paul Senior	12 Recommendations Read Replies (1) \| Respond to of 206112

I'm surprised you could believe stocks like ESV were overpriced at the March lows. I guess I don't understand how you value stuff. To me, stocks like ESV seemed like buys then. Unfortunately for me, I was too worried about a falling stock market to add much to my ESV, NE, other positions. Talking ESV, to me, if I looked at a stock like ESV at about March lows, I would see a stock at $22-24, with a tangible book value of $32/sh. Long-term-debt to total capital of just 5%, with $6.59/sh in cash. This is a company that in the past ten years has increased book value every year, has been profitable every year, and has shown in good years that it can deliver tremendous profits (net profit margins) and very good returns on equity. If one assumes that good times for ESV will occur again - average "good" times, not even "great" good times -g-, the stock has often and apparently easily sold at twice book value. It was about 2/3 book value in March. Similar kind of comparisons when looking at price/sale, p/earnings. Okay I understand the business is cyclical and this isn't the greatest time maybe for ESV business. And maybe the stock in March wasn't a buy for a trade if there was no confirmation from charts or oil prices or some positive news. In terms of "over priced" though, imo March may turn out to be have been the best time in years for a value "investor" to have bought ESV shares. Same kind of analysis for me as regards NE, some others. jmo