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

To: Paul Senior who wrote (38455)	8/12/2010 11:33:49 AM
From: Paul Senior	Respond to of 78748

CWT. Added back a few shares of this water utility today as stock falls with the market. finance.yahoo.com

To: Paul Senior who wrote (38455)	5/31/2011 3:06:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Hi Paul - Re: Companhia de Saneamento Basico do Estado de Sao Paulo (SBS) Do you still own your SBS? I ran across this article and they continue to recommend the company. I was surprised that the PE is quite low (around 7). The stock is over 300% since July 2009. They have quite a bit of debt ($5B) making their Enterprise value at $10.76B. Net income was almost $1B last year so their annual income supports their large debt load. Water: Opportunities Exist With Forgotten Commodity seekingalpha.com From the article:"...Sabesp (SBS) is the Brazilian leader in water purification, and has been able to clean and monopolize water and sewer services in the Sao Paulo region. The stock's 21% net profit margin is high for a utility, it is in a technical uptrend, and it is still trading cheaply with a 7.33 P/E ratio. Expansion opportunities are available if it builds a plant in the Amazon delta in northern Brazil....". -------------------------------------------------------------------- The company also paid a $0.93/share dividend in 2009 but nothing for 2010 or 2011. Not sure what their dividend policy is as there was no dividend in 2007 or 2008 either. Stock is selling close to an all time high. Hate to buy at this level but the company still looks like a compelling "Value Buy". What's your take? EKS

To: Paul Senior who wrote (38455)	10/17/2011 12:06:13 PM
From: Paul Senior	Respond to of 78748

I'll take losses on Veolia (VE) and the Gap (GPS) now. I assume VE dividend will be drastically cut as company goes through a significant restructuring. That already may be reflected in the stock price. I'll bet the stock won't recover until more is known about how the restructuring will work, and maybe until some dividend is expected to resume (if it were to be eliminated this year or next). I cut back my small position by about 1/2. Maybe the rest later. Gap is closing stores in USA, moving to open stores in China. I don't see why if there's underperformance in USA, why management would have much confidence in success in starting up stores in China. Reading about Gap on the internet, there are way too many comments about poor quality of Gap clothing. Also high prices or the wrong styles/sizes. I'll close my position. (Ot: And maybe consider a small short here, although I don't do well with my attempts to short stocks.) finance.yahoo.com