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

To: Spekulatius who wrote (39570)	10/5/2010 11:56:52 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78702

SENEA. I'm one who is familiar with several of the brands. Possibly both because I'm familiar with the geographic area in which Seneca operates (processes) and because I am interested in grocery stores and grocery shopping. We could argue whether its important Libby brand has national (USA) recognition and what that recognition is. I say it's positive among shoppers for quality of canned goods. It's really only important to me though that the product gets shelf space. Farmers farm and harvest, and Seneca is right there to process and ship. If nature provides favorably, the farmers have a good season and so should Seneca. In other words, I expect good years and bad years for Seneca, just as I would for farmers. I expect SENEA to be profitable this year, and with a current and outlooked p/e of 7, the stock's a buy for me. Food companies which trade at or under 10x are, in my view, generally good buys at that level. SENEA no exception. Of course, that's MY view and jmo.

To: Spekulatius who wrote (39570)	10/13/2010 2:03:24 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78702

re Senea, OI - maybe we should invest in those business that make the cans rather those that fill and sell them. I bought a starter in OI today, which appears to be reasonably cheap. What attracted me to OI it appears to be cheaper than peers (PE ~9x, EV/EBITDA~5.7 - the latter indicates that even adjusted for it's leverage, OI is cheaper than peers BLL or PXG for example. Another plus - about 30% of OI revenues are coming from emerging markets (the profit contribution is even higher), which should help growth in this fairly mature business/ o-i.com Edit: I see there are substantial asbestos related charges each year - in 2009 it was 180M$ (pre tax). That is substantial or a company with 7B$ in EV and somewhat explains the discount relative to peers.