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

To: richardred who wrote (40984)	1/10/2011 1:19:35 AM
From: Shane M	Read Replies (1) \| Respond to of 78470

richardred, I'm not familiar with SHLM. I pulled it up in my database (SI Stock Investor Pro) and quick thoughts: My participation in the value realm is fairly narrow - if a company isn't hitting alot of Joel Greenblatt's Magic Formula criteria or if it doesn't hit alot of Buffettology-type screens I pretty much don't see it. My guess is the returns on capital, return on equity, and various other similar calcs combined with the lower earnings yield have never brought it to my attention. The sales growth is interesting to me, but they've gotta improve operationally before they start showing up on the filters I use. One other thing I look at is book value growth and their book value is about the same as it was 7 yrs ago - they're not creating much equity via the business. It looks like free cashflow was starting to surge a few yrs back and then they went negative again recently. Without digging more it's tough, but again - they haven't historically proven great managers of capital on a ROTC or ROE basis, but maybe they're onto something with what looks like a recent big investment. But again - just my quick thoughts and I'm not a die-hard value guy and there's lots of companies on this thread that folks like that never get past the first filters I have. This one just doesn't fit the profile of what I tend to look at.

To: richardred who wrote (40984)	9/8/2011 1:00:11 AM
From: richardred	Respond to of 78470

FWIW-SA still thinks it's a value. I'm currently not looking to add more, but I still continue to hold. Q.E.P. Co., Inc. ( QEPC.PK) QEPC is a manufacturer and seller of a product line of specialty tools and flooring-related products for home improvement. For the year, the stock has gained 49.16%. Despite outperforming the market, the stock still remains undervalued. The reason is that it is relatively illiquid and trades on pink sheets. Its current business does not appeal to investors looking for exciting growth industries. The 5-year revenue growth rate appears low at 2.89%, as the revenues declined during the financial crisis. However, it has managed to post earnings per share growth of 59% over the same period. The reason is the company has been buying back shares in the market while keeping their capital spending at low levels. The stock is currently trading at 6.21 times trailing earnings, lower than The L.S. Starrett Company's ( SCX) 17.21 times earnings and Snap-On, Inc. ( SNA), valued at 12.38 times earnings. It looks like the market is not yet convinced that it could post modest growth in the coming years. At first glance, investors would be worried at the performance of the housing market. Despite a sluggish housing market this year, QEPC has posted revenue growth of 13.60% year on year. With a market cap of $69.67 million, it would be a good steal for a company looking to expand its portfolio of home improvement products. seekingalpha.com