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

To: Jurgis Bekepuris who wrote (43172)	7/4/2011 9:44:23 PM
From: E_K_S	Read Replies (1) \| Respond to of 78740

Hi Jurgis - I forgot OSK bought JLG a favorite of mine. Pretty interesting overview presentation. Slide 12 summarizes the "Valuation" Proposition: Averaged a PE ratio of 12.0 over the past ten years. A reversion to its historical P/E ratio would result in a return of 64% from its current forward P/E of 7.3. Earn $5.50 per share in FCF next year. A reasonable 10x multiple on FCF would result in a share price of $55.50 or a return of 114% from current levels. -------------------------------------------------------------------------------------------------------------------------- During the crash of 2008, I picked up shares in the $5.00/share area and later sold them around $10.00/share. The company still relies a lot on State and local municipal sales and this sector is broke. The presentation did provide a pretty good argument that they would still produce a good cash flow from their parts business. I guess I should have held on to a few shares as their fair value price is at $55.00/share , 67% higher from Friday's close. EKS