Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Debt Free who wrote (49083)	8/12/2012 7:34:59 PM
From: Paul Senior	1 Recommendation Respond to of 78702

SEH. I pass on it. Erratic earnings and book value.. In ten years, in best year couldn't earn more than 12% on equity. I challenge The Street's timeframe and conclusions: "The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth" ... "SPARTECH CORP has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SPARTECH CORP continued to lose money by earning -$0.76 versus -$1.62 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$0.76)." They have what they feel is a trend; I have what I feel is a trend. My trend isn't based on two or three data points of improvement for this ugly company. I guess if you buy into the company, you buy into the strategic plan. Co says, " "Our focus in the second half of the year remains on executing our strategic initiatives. This includes implementing operational improvements to enhance margins, accelerating growth in our specialty products and continuing to reduce our cost structure". I guess after ten mostly cruddy years, it's about time. I don't know enough to buy into the plan and its results so far. So it's a pass for me. Stock could rise again from current value. I don't see much margin of safety though. Jmo

To: Debt Free who wrote (49083)	8/13/2012 1:41:51 PM
From: richardred	1 Recommendation Read Replies (1) \| Respond to of 78702

In the past. I've looked at this company extensively and have passed on it for now. Some brief comments-FWTW. I think POL , SHLM, and EMN are eating their lunch right now . Performance plastic player EMN also has a venture with POL. It's Highly leveraged and more suited to the domestic market. I made some money trading a company called WLM that was highly leveraged like this. I however lost more as it filed chapter 11. Kind of left me with a bad taste. As I notably like high risk situations. I'm not to say that you can't make money here. Given the high sales level here at the expense of low profit margins. Any setback in this company's strategy going forward. Will keep you on your toes. That's if your just a buy hold type of player in this stock. BTW-I've owned this company before, and exited with a nice profit. I sold it when it was doing much better than it is now.. Message 25837885