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

To: E Newman who wrote (2888)	12/30/1997 12:53:00 AM
From: Paul Senior	Respond to of 78666

E Newman: re JWC. Ladies/Gentlemen: someone here follows JWC, I believe. Pls respond to E. Newman. I would prefer not to embarass myself with a guess when I know somebody out there actually might have an informed opinion to offer. Paul Senior

To: E Newman who wrote (2888)	12/30/1997 12:54:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 78666

E, IMO - JWC is a $16 stock selling below $12. They brought in $4.5M cash from the AGRO acquisition in addition to the $8M they already had. This money has been invested and, from their track record, one can assume they have put it in good places. They likely won't realize the gains until there's more market recovery. I had sold mine at 13.5 and just bought back at 11.75 looking for 18-20 end of June. For what it's worth, Ron

To: E Newman who wrote (2888)	12/31/1997 10:00:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 78666

E, Additional comment on JWC. Listed 34th Forbes best managed companies in US. Over the last 5 years: Rev growth of 222% Earnings growth of 178% EPS growth of 405%. Over 80% per year average EPS growth!! BV over $6.00/S, Cash over $3.50/S It's now selling at 1.8 BV, PE of 7.4, 3.24 x cash They have historically managed cash extremely well. End of September they acquired AGRO for shares, adding $4.8M cash to reserves. Doing this at that time, they diluted earnings 10%, but had not been able to put the cash to work. They got control of the cash just before the market fell and have been investing it. All indications are that they will not only continue growth, but at a faster rate than in past. In addition to this, they are prime for acquisition or quality merger and it's likely they will declare a stock dividend within 6 months. Compared to other similar companies in the brokerage sector, they are undervalued. Considering their historical growth, a real bargain. Last Q they reported .62 EPS. It is very likely they can have '98 calendar earnings of at least $2.50 or 4.6 PE to current price. Price ran up due to an article in some magazine (forget which) and there's now some selloff for taxes. There will be renewed interest in it early next year and we now have a good buy opportunity. For what it's worth, Ron