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

To: E_K_S who wrote (38043)	5/26/2010 11:50:01 AM
From: Paul Senior	Respond to of 78464

EKS. Had I been alert enough, I would've added to my shares of SVU at lows of couple days ago. WMT has recently got my attention: Looking to add shares if it breaks below $50. ($49 or $50 or $51 -- Silliness really, if I continue to view WMT as a ltb&h stock where I only hold a few shares. It's just that I added last year at $49.9, and in this market with bargains or possible bargains abounding, I'd just as soon not pay more than my last add.) finance.yahoo.com

To: E_K_S who wrote (38043)	6/2/2010 3:19:17 PM
From: Paul Senior	Respond to of 78464

SVU. Fill for me today for a few more shares. finance.yahoo.com

To: E_K_S who wrote (38043)	6/2/2010 4:34:59 PM
From: Walter Bagehot	Read Replies (2) \| Respond to of 78464

SVU I noticed Paul's post below, wherein he noted he was adding to his position. Looking through the fundamentals though, I have a couple of comments on it, and the analysts' forecasts. - Although the 2009 impairment does not appear to dump "other" costs into the write-down in the 10K disclosure, the simple fact that the writedown is required so shortly after the acquisition demonstrates the amount of money the company has wasted on acquisitions in the past - what confidence do you have in the management going into the future? I realise that the CEO is new, but the rest of the team are not... - What are the analysts basing their forecasts upon? Sales have fallen in the past year, and given the dispersion of the brands, what "value" or "durable advantage" do you see in which to invest? RoA is 2%, and not much higher on an adjusted basis for tangible assets. - Is there any value on the balance sheet? Seems highly-levered and full of goodwill to me. - $7bn of debt remaining, and $500m free cashflow generation per year on a conservative basis, looking back the past 3 years. - Margins are around 1% - pretty cut-throat operating environment to contend with. I'm not convinced it is defensive, particularly with Tesco, Wal-Mart etc dominating the market.