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

To: deeno who wrote (53321)	2/5/2014 3:38:43 PM
From: Mattyice	Read Replies (3) \| Respond to of 78495

Thanks to both the Spekman and Deeno for the dialogue. Deeno, i somewhat agree with you on the psychology of how a stock is viewed and this one in particular in the qualifications that it becomes a value stock. I think this message board sometimes leans to GARP style value investing instead of on pure, obscure, hated valuation type plays. My best bets have come from stuff, that is hated, not understood, the numbers don't make sense. There is nothing really attractive about DGX currently and appears not much hope for the foreseeable future from what i have read and by the numbers i have looked at. On the other hand, I can also side with Spek that DGX is not cheap enough and there is some risk with the high debt profile. You can end up waiting around for a dream that never materializes. Have you looked at the free cash flow over the past 5 years? unless my numbers are wrong.. i am showing it yields anywhere between 10-15% at 700mil-1bil per year. Not that assumptions really do you any damn good, but if this thing has declining revenue over the next few years, it still will yield 8-10% FCF... there seems to be some margin of safety at about $45-$50. I will also mention the EKS number (or the Graham number) or my buffetstyle valuation number kind of puts you in this $40 range - even with adjust revenue, book value, and PE to the downside. I'm not sure anyone cares what i think on here, doubt anyone has every followed my recommendations but In my experience these boring companies with not much of an outlook seem to not trade much lower than these base numbers unless you get a 2009 scenario which just presents more opportunity and whole other discussion. For me its a wait and see.. but i see both sides here.