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

To: Spekulatius who wrote (47225)	3/28/2012 2:42:34 PM
From: Sergio H	Read Replies (1) \| Respond to of 78753

I am still confused as to why some people think a stock becomes a value play when it hits a new bottom, (specially when they are not looking at a chart). Not meant as a personal attack, just don't understand the logic. <I honestly think the bottom is closer if the same analyst (who apparently has been very wrong so far) downgrades this stock to neutral due to a bleak near term outlook.> This particular analyst has expressed caution in his rating analyses and has based his numbers on BHI's guidance. Both times the target was lowered in response to BHI's outlook. This is the latest round: <Credit Suisse’s B. Handler lowered his price target from $62 to $56 and downwardly revised his earnings estimates. Handler nonetheless reiterated his Outperform rating on the stock, but admitted it was only for patient buyers, given the company’s recent problems. ” We admit the story has changed underneath us. The value we see now is more about self help in the U.S. as the BJS franchise finally gets fixed and optionality on a recovery in pumping momentum later in 2012, as well as the grinding higher of margins internationally and eventual reduction in BHI’s cost of growth. We do have conviction that BHI has identified its operational shortcoming and is taking – and will take more of – the steps to better manage information, distribution and its assets. > Management has not delivered on their projections and this occurs quite frequently when new management takes over. Might as well clear the deck and get a fresh start. reuters.com ----------------------------------------------------------------------------------------------------------------------------------------