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

To: Spekulatius who wrote (43105)	6/27/2011 6:48:40 PM
From: Paul Senior	Respond to of 78797

BK. I added today also. I expect I'll add a little more again if it falls further. I don't know if there's a margin of safety with the stock, but I view BK as a very cheap stock that should eventually recover to reflect it's good business history and prospects. If BK would earn next year again just a measly 7.5% on its equity (i.e. on its stated bv), it would produce $2 in earnings. On today's $24.65 stock price, that'd be a p/e of a little over 12x. Looking at the high and low p/e's of BK over the past ten years (S&P tear sheet), the low p/e for any of those years was 11. (In 2009 there were no earnings). Absent any bad news from the company or any analyst published negative insights, I just have to believe the stock is near lows, and that it "should" "eventually" recover. And so I am betting and hoping. BK's a substantial business (48,000+ employees), and it seems to provide services that don't seem to be subject to obsolescence (but who knows?).